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Strategic leadership of ethical behavior
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Ethical issues or dilemmas can range from conflicts of interest to fraud (Bethel, 2015). When most people think of ethics, the first behaviors that come to mind are honesty, fairness, and integrity (Ferrell, Fraedrich, & Ferrell, 2011). What does ethics mean to the upper leadership of the American Red Cross? According to an article written by Justin Elliott, approximately 40% of the employees feel distrust in the charity’s leadership and serious doubts about their commitment to ethical behavior (2014).
Honesty means being truthful and trustworthy and not trying to hide anything (Bethel, 2015). However, prior efforts to provide aid in times of disaster have left many in the public wondering what the American Red Cross’s motives are.
In 2000, the American Red Cross was held in contempt of court for repeated violations in violation of the Consent Decree that they had signed with the Food & Drug Administration in 1993 (Wolfe, 2012). In 2003, the decree with modified to ensure greater safety measures. However, the Red Cross has been fined $47 million in penalties due to findings during inspections (Wolfe, 2012). One such fine was $9.6 million due to blood safety violations in 16 of 36 blood collection sites nationwide (Koleva, 2012).
Where do they go from here? The American Red Cross could limit or prevent future ethical issues by implementing best practices as one of their core functions towards institutionalizing their operations (Ferrell et al., 2009). Basically, there are three core initiatives for an ethical culture that need to integrated into their ethics and compliance programs are legal practices, voluntary practices, and best practices (Ferrell et al., 2009). In theory, organizations who implement these practices significantly reduce their risk and
Therefore, federal laws, governmental regulations, and company rules are those items that must be followed. Historically, laws regulating business practices are established to provide basic rules for responsible business activity and to protect consumer safety (Ferrell et al., 2009). Ultimately, the American Red Cross should monitor and routinely conduct self examinations of their business transactions and activities to ensure they are compliant. Additionally, they could hire outside agencies to conduct the audits to ensure they are fair and impartial.
Voluntary practices are those items such as beliefs, values, and acts of philanthropy or culture of the organization (Ferrell et al., 2009). Certainly, the American Red Cross could work towards establishing an organizational culture of trust by not only conducting independent surveys of employees beliefs, values, and feelings of the organization; but, they could also create a Culture Committee that represents the change that needs to occur. Ultimately, senior management would need to buy in and emphasize the need for change or the program would never be
Brainard, L.A., & Siplon, P.D. (2004). Toward Nonprofit Organization Reform in the Voluntary Spirit: Lessons from the Internet. Nonprofit and Voluntary Sector Quarterly, 33 (3), pp. 435-457. Retrieved from http://nvs.sagepub.com.ezproxy.liberty.edu: 2048/content/33/3/435.full.pdf+html
Non-Profit organizations are a major mold in society in general, and they continue to help advance many of the social causes of our time. From the description, we know that employee and volunteer morale is quite low, and that is the fault of the senior management. In an organization, it is important that each individual knows that they are contributing to something larger than themselves. In many cases, employees seek to work somewhere where they can earn a living, but also where they can become a member of a team, and feel a sense of purpose. When they are not treated with respect or given the ability to make their own decisions, they lose engagement and become stagnant in their work. Volunteers look for much of the same thing; they are, after
The American Red Cross is always present at different situations, as a medium of communication and humanitarian services; they give comfort to soldiers and their families. The symbol of the Red Cross is a worldwide known. The Red Cross ...
Pictet, Jean. “The Fundamental Principles of the Red Cross: Commentary.” The Fundamental Principles of the Red Cross: Commentary. N.p., n.d. Web. 15 May 2014.
Codes of ethics can be a form of self-regulation and accountability for NGOs and nonprofits. Even if codes are not implemented, it is suggested organizations create and abide by a mission statement and/or a set of goals. Codes originally developed as a means to help the public regain confidence after the scandals in the 1990’s, but have grown the most in recent years with the increase in organizations. From 2000 to 2011, the use of codes has increased from 16.6 percent to 55.8 percent. Not all codes are created equal, they vary in clarity, length, applicability, and jurisdiction. Some states with an abundance of nonprofits have state regulations and codes, for example the Minnesota Council of Nonprofits was created in 1994 and created the Principles and Practices for Nonprofit Excellence, a 20 page, detailed report encompassing fundraising, employee wages, internal hiring processes and more. On the other hand, the Massachusetts Council created a one-page code emphasizing six core values (Bromley & Orchard, 2016).
To apply this system of moral values effectively, one must understand the structural levels at which ethical dilemmas occur, who is involved in the dilemmas, and how a particular decision will affect them. In addition, one must consider how to formulate possible courses of action. Failing in any of these three areas may lead to an ineffective decision, resulting in more pain than cure.” Ken Blanchard states, “Many leaders don’t operate ethically because they don’t understand leadership; these executives may have MBA’s from Ivey League schools or have attended leadership training; they may routinely read the best-selling management books, however, they don’t understand what it means to be a leader.” They don’t model a way of ethical behaviors.
It also, gives the foundation for classifying the conduct of the professional and to provide a measurement in which the ethical standard is being enforced. Limitations cannot cover all aspects of the situation. The ethical code can consist of a restricted range. Furthermore, codes can have a possible conflict with others with some common behavior (p.272). Human service professionals must be aware that conflicts does exist. Individual professionals who are a part of one or more organization can run into conflict that may cause problems. The professional must develop ethical thinking skills to assist them to determine the ethical dilemmas that they may face. It is crucial for the helper to clearly understand situations from ethical
In general, most people practice utilitarian ethics and hold themselves accountable for doing the right thing as well as does corporations, businesses, medical facilities, and Public Health service. Therefore, these companies put in writing their company ethics policies and
Did you know that every 2 seconds someone in the United States needs blood? Where does that blood come from? The American Red Cross, is a nonprofit humanitarian organization. It assists with disaster relief and provides emergency services to those in need. The American Red Cross has been around for aver 100 years and has come a long way in the process.
. Motivations to volunteer: The role of altruism. International Review on Public and Non-profit Marketing2006;3(2):79-91
Most organisations begin the method of establishing organisational ethical projects by introducing codes of conducts. It helps to generate public trust and improve
Ethics shapes our attitudes towards the world, other people, and cultures and how we process right from wrong. I would love to believe that the world is made up of individuals that have a high level of integrity and pure ethical fibers; however, this is not the world in which we live in. Ethics or rather morals entail mechanisms that defend, systematize as well as recommended conceptions of right or wrong, good and bad. Interestingly, organizations have to develop ethical codes to ensure employees and employers understand the difference in doing right or wrong. It is no secret that ethics are an essential aspect of successfully running any organization or government, yet, countless corporations grow precipitously on unethical practices. Ethics
The concept of business ethics refers to a set of guiding principles that encourage individuals in an organization to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry (Lisa McQuerrey., 2016). Ethical and Unethical business decisions have long been a predicament encountered by organisations, these practices are concerned with how the companies interact with the global business world, and to their one-on-one dealings with individuals (Garry Crystal, 2016.) The concept of ethics and social responsibility emerged into the business world in the early 1970s after the end of World War I, saw these organisations become more profit driven resulting in negative impacts on society at large.
While our organization prides itself in a well-defined and thorough code of ethics, there are occasions where situations arise, but the solution is not clearly defined within our code. In such a case, it is critical to develop a decision making framework that allows our employees to make a decision while operating within the moral guidelines of our corporation. In the hope that we can eliminate discrepancies, Royal Dutch Shell has created an ethical decision strategy that will make clear the ethical standings of our corporation and ensure a consistent decision making process. Our decision making process is focused on our stakeholders, and how we can maximize their benefit.
...nternational Committe of the Red Cross. International Review of the Red Cross, Mar. 2005. Web. 07 June 2010. .