Assignment 1: the American Red Cross (Arc)

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Assignment 1: The American Red Cross (ARC) While the Red Cross’ reputation soared immediately following the September 11th attacks in the wake of their good works, the organization was soon the target of public criticism. By late October 2001, the Red Cross was being condemned by victims’ family members, politicians and the media for allocating a portion of its Liberty Fund towards future terrorist attacks, rather than addressing the needs of those who were directly affected on September 11. The three main operation fund resources are contributions, revenues from products and their services, and investment income from other sources. These funds come from corporate, foundation and individual giving, which includes the United Way, federal, wills and grants. Large donations are received from such corporation as Wal-Mart and the GE Foundation. The American Red Cross uses the Red Cross Disaster Relief Fund to support the American people who are victims of thousands of disasters across the country each year. The funds assist the Red Cross in meeting the immediate needs, such as shelter, food, and critical mental health counseling. Most recipients have been impacted by natural disasters like hurricanes, house fires, floods, tornadoes, and winter storms. Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns. The American Red Cross failed their duty and by not showing their stakeholders that they really cared about the

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