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American Red Cross Ethical Issues

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According to the Ferrell, Fraedrich and Ferrell (2015)text, ethical issues in a business setting only arises, when an employee decides to exercise their own ethical beliefs in order to accomplish a goal within the business. In this case, there were several behaviors that were not ethical. ARC had a great deal of trust in its staff. They failed to exercise their right to conduct background checks on employees and volunteers. Therefore, employees and volunteers were using donations to suit their own needs instead of providing for the victims of disasters. ARC had a poor monies and supply monitoring system. American Red Cross has limited knowledge of how their disaster relief is dispersed. ARC admitted to having no cost control, little inventory

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