“For-Profit and Non-Profit Organization”

Part 13

Ethical Dilemma Associated with the American Red Cross3

Privacy donor3

Conflicts of Interest4

Compensation4

The American Red Cross Respond to this Ethical Dilemma5

Social, Legal and Political Outcomes6

Part 27

Ethical Dilemma Associated with Nokia7

Nokia Respond to this Ethical Dilemma8

Social, Legal and Political Outcomes9

Part 310

Reflection: Nokia10

Reflection: The American Red Cross11

Part 412

Theoretical Association of the Ethical Dilemma of the American Red Cross12

Theoretical Association of the Ethical Dilemma of Nokia13

For-Profit and Non-Profit Organization

Part 1

Ethical Dilemma Associated with the American Red Cross

Although it is common to paint a rosy picture of the expected impact of for-profit companies when seeking financing, American Red Cross have a responsibility to portray the needs they serve and the impact that your organization makes the greatest possible accuracy (U.S. Newswire, 2007). Analysis of patterns of organization expenditures must be as accurate as possible, even if the results show that the company is spending too much on organizational growth and very little programs.

American Red Cross must allow public access to their financial statements and the results of financial audits as well.

Privacy donor

American Red Cross can collect a significant amount of personal information about their donors, including credit card and bank account numbers (Storch, 2008). Securing this information is vital to the maintenance of databases donor ethics. It may be tempting for American Red Cross to sell information contact their donors, such as addresses and e-mail for a quick cash flow, but it can be considered an unethical practice, if the organization does not receive express permission each donor before selling the information.

Conflicts of Interest

Members on boards of directors are chosen for their links, resources and experience. Some of the links that make it a valuable member of the board, however, they can be the cause of a breach of ethical conduct (Rozario, 2003). A classic example arises when American Red Cross uses the services of a company with which a board member has extensive ties when the same service could be achieved at a lower cost and with higher quality from another source.

Conflicts of interest can arise when American Red Cross pander to the wishes of their donors more valuable too. Large donors can often influence how American Red Cross spends its resources, channeling money into pet projects of the donor or recipients preferred when the money could achieve greater impact elsewhere (U.S. Newswire, 2007). Executives or board members receive personal gifts from major donors can influence spending decisions, as well as the creation of a violation of ethics.

Compensation

Top-level managers of American Red Cross devote the same amount of time and effort to build the organization and ensuring its success, but the compensation practices common in the world for profit are under control in nonprofit organizations (Rozario, 2003).

Practices such as the reimbursement of travel expenses, paid vacation time and luxury travel packages can cause outrage among the base of an organization's donors. Executive compensation is one of the elements that must be presented as transparent as possible to donors and the public, to avoid allegations of secrecy and misuse of funds ...