Case Analysis: Case 3
“The American Red Cross”
Gontiñas, Glaiza Bie A.
Lañojan, Joy Rodelyn
Cartagena, Genovevo III
Main Issue: HOW TO ACHIEVE EFFECTIVE CORPORATE GOVERNANCE?
I. Defining the issue
ARC as an organization has been criticized for a number of things. It includes ethical risks and challenges that address allegations of fraud, bribery, and even theft on the part of volunteers and employees working for the organization. They have also faced a number of other internal challenges regarding executive turnover, employee misconduct, charges of overcompensation and possible corruption among its board of directors and upper management and also the risks with its disaster response duties. Analyzing the case data
The main problem of this case is about leadership. The cause of the problem is that the president of the ARC or the executives is easily replaced due to fraud and other leadership problems that trigger the organization to replace him/her. This frequent executive turnover has significantly weakened the organization’s ability to carry out its federal mandate. The constant change in leadership is debilitating and does nothing to address the real problems, which are years and years of underinvestment in telecommunications, technology and other infrastructure to help the organizations with its mission. Leadership troubles have extended into the local chapters as well, indicating systematic problems that cause the congress to take action to try and improve the ARC’s effectiveness and efficiency after the scandals of September 11, Hurricane Katrina and other problems. In effect of this leadership problem, the organization faced other problems like the mismanagement of funds and volunteers and ethical issues like executive compensation, preventing and handling employee misconduct and considering all stakeholders in its operating model. The mismanagement of funds has an effect
II. Generating Alternatives
a. The one who should...
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