The American Red Cross Humanitarian Organization - Essay Example

Red Cross The American Red Cross is arguably the largest humanitarian organization in the United States. The American Red Cross was founded in 1881 by Clara Barton to provide humanitarian assistance to the victims of the civil war (Jones, 2012). The scope of the organization and areas of operations have since increased to include the provision of services, such as emergency assistances, education, and disaster relief. In fact, the importance of the American Red Cross has been seen in many emergency and disaster incidence that have occurred in the United States in the recent past. In 2005, for instance, the American Red Cross played a critical role in providing humanitarian assistance to thousands of Americans who were affected by the Hurricane Katrina. Jones (2012) indicate the Red Cross assisted in the evacuation of the affected families as well as proving first aid services to the injured, as well as food and temporary shelters to those who were affected by the disaster. The American Red Cross also assisted greatly during the 9/11 terrorist attacks, where the organization provided emergency assistance to the affected people. In fact, the American Red Cross is currently synonymous with humanitarian assistance. This document will conduct a review of the Red Cross business model, lobbying efforts, leadership profile of CEO, SWOT analysis, strategic planning, administration, and operations. Operations The American Red Cross is the largest humanitarian organization in the country. The organization was founded in 1881 to assist those who were injured during the Civil War. The American Red Cross' main areas of operation are the provision of humanitarian assistance to those affected by disasters and emergencies. The first major area of Red Cross operation is the provision of disaster response services. America is one of the countries that are prone to natural and manmade disasters most of which are devastating. However, the American Red Cross has always played a key role in providing disaster response services. In fact, the American Red Cross has provided many response services, which has helped save lives of thousands of people affected by disasters. Some of the disaster incidences where the Red Cross has provided effective response services include Hurricane Katrina, 9/11 terrorist attacks, Comair Flight 5191, the Kansan tornadoes, and the Florida tornadoes just to name but a few (American Red Cross, 2006). In all these incidences, the Red Cross responded by assisting in the provision of evacuation services, first aid to the injured, food, temporary shelter, clothes and bedding. American Red Cross also provides blood services in the form of donations to hospitals in need of blood. The Red Cross works closely with community centers that help in the donation of blood. The Red Cross then supplies the blood to hospitals and health facilities that require blood. Current estimates indicate that the Red Cross supplies about 66% of donated blood in the U.S. (Jones, 2012). In a bid to ensure that the organization has enough blood, the American Red Cross builds a large blood processing plant in Pomona, California. The Red Cross also provides quite a number of health and safety services, including first aid, lifeguarding, and cardiopulmonary resuscitation among others. The Red Cross also works closely with the military to ensure faster response to emergencies and help to victims of war (American Red Cross, 2006). Conflicts have been a common phenomenon in the society. However, the majority of those who suffer in the war are mainly the civilians as has been seen in the war between Israel and Palestine or the war in Syria. Therefore, the Red Cross usually works with the military during war time as a neutral party to ensure that victims of war are given immediate medical attention. These include first aid, drugs, food, and shelter. The other significant area of operation of the Red Cross is that the organization works closely with the vulnerable people in the society. Currently, the Red Cross is providing humanitarian aid to those who are suffering from hunger and malnutrition by providing them with food, clothing, shelter and healthcare services. Business Model The American Red Cross consists of 769 regional chapters, which are headed by the national board of governors. Each chapter has a director who is in charge of ascertaining the programs and services that are needed in their areas of operation. The Red Cross has an annual budget of about $4.1 billion, which it distributes to individual chapters and national level (Grabianowski, 2006). The American Red Cross does not receive funding from the government. Instead, the organization is funded through donations and cost-recovery fees that the organization charges for some of the services it offers. However, the government sometimes funds the Red Cross especially in cases where it is contracted by the government to provide some critical relief services. Because the Red Cross is a not-for-profit organization, it is exempted from taxation. The Red Cross services are provided mainly by a team of volunteers who does not draw salaries. Currently, estimates indicate that the Red Cross has about 1.2 million volunteers (Grabianowski, 2006). However, the Red Cross also employs about 40,000 workers, consisting mainly of nurses. These are the only employees who are paid by the Red Cross. Lobbying Efforts Because the main aim of Red Cross is to ensure that people live a safe and secure life devoid of death and suffering, the organization has been involved in a number of lobbying efforts in a bid to fulfill its mission of making the world a good place to live. The first major issue that the Red Cross has been lobbying about concerns the federal budget and appropriation issues. Report indicates that the Red Cross did lobby for the federal budget and appropriation in 2010 to enable the organization has enough funds and resources needed to enable it fulfill its mandate. Additionally, the organization also lobbied for a new building to enable it to coordinate its program at a centralized location. In fact, the Red Cross reveals that it spent about $282,000 on federal lobbying efforts in 2010 (American Red Cross, 2006). The Red Cross lobbying efforts have also been focused on disaster and emergency planning and health issues that affect people in the society. The Red Cross leaders believe that the best way to make America a healthy and a safe place to live and d business require that there is adequate planning for disasters, emergencies and health issues (Kosar, 2006). In response, the Red Cross did lobby for a bill known as the Federal Supply Schedule Usage Act, which effectively passed in the Congress. The other bill that the Red Cross lobbied for but failed to pass in the Congress was the Josh Miller Helping Everyone Access Responsive Treatment in Schools Act. In 2006, the Red Cross lobbying efforts reportedly focused mainly on emergency and disaster planning associated with the Hurricane Katrina relief efforts. Leadership Profile Of The Red Cross CEO The Red Cross has recorded success in the past years in the provision of humanitarian assistance to the people in need. However, the Red Cross attributes much of its success to its current President and CEO Gail J. McGovern. She has not only been effective in executing the Red Cross strategies, but also in leading organization's operations and business activities throughout the country. McGovern was appointed the Red Cross president in 2008 and has since been credited for demonstrating strong leadership in the organization (American Red Cross, 2015). Since she took the mantle at the country's leading humanitarian organization, McGovern has transformed the Red Cross, which is currently very effective in fulfilling its objectives. Additionally, the Red Cross is currently better prepared to confront any current and future challenges, thanks to McGovern effective leadership style. As a transformational leader, McGovern has initiated a number of projects, which has improved the Red Cross' financial stability, as well as increased the scope of Red Cross services. Some of the most significant initiatives made by McGovern since she took over Red Cross as the CEO include overhauling the organization's IT system and ensuring the growth of social media and mobile technology. For instance, McGovern introduced several free apps to improve lifesaving skills of its team of volunteers and employees during emergencies. McGovern was also instrumental in providing leadership during the Haiti earthquake that claimed the lives of hundreds of Haitians in 2010. During the incident, McGovern sent the American Red Cross personnel and volunteers who assisted in evacuation and provision of emergency services, such as first aid, food, clothing, blankets and temporary shelters (American Red Cross, 2015). She was also instrumental during the 2011 earthquake and tsunami that occurred in Japan, and many other disasters that occurred during her tenure, such as the Hurricane Sandy in 2012. McGovern holds a Bachelors of Arts degree from John Hopkins University and an MBA from Columbia University (American Red Cross, 2015). She was recently appointed to serve on the Management Advisory Board of the President. McGovern also serves as a board member in several leading organizations, such as John Hopkins University. SWOT Analysis Strengths Highly respected worldwide Highly trusted Provide aid throughout the year at any time Strong brand that is recognized worldwide Large blood stewards globally Partnership with FEMA Has been having a government charter for the last century Viewed by many as providing help to the community Weaknesses Highly bureaucratic Having failed to satisfy the needs of victims on many occasions High employee turnover at senior management level. Corruption and mismanagement of funds by local chapters Internal antagonism between the board and the management of the organization. The size of the board of directors is too large, which makes it difficult to manage Facing many litigation and fines that impacts negatively on the organization’s financial base. Lack of adequate funds to enable it implements all its strategies and business activities. Inability to respond promptly to emergencies as was the case during the Hurricane Katrina and the 9/11 terrorist attacks. Opportunities Increase brand awareness to the youths Find more organizations to partner with. Become more diverse by attracting volunteers from more racial and ethnic communities Increasing transparency and accountability could increase the level of trust accorded to the organization. Developing innovative techniques of generating more income Improving communication both internally and externally. Find more donors funding to increase its financial base. Threats Negative press coverage High competition for donor funding during hard economic times Bad public perception regarding the misuse of blood and funds. Strategic Planning Strategic planning is important in the delivery of quality services to the victims affected by disasters. Over the years, the Red Cross has failed to fulfill the needs of victims, something that has seen the Red Cross receive negative publicity (Winston et al., 2013). In response, the Red Cross, through its current president and CEO has come up with a strategic plan that aims to improve the quality of service delivery and improve the reputation of the organization throughout the country. The first most strategic plan for the Red Cross is to improve the quality of service delivery. In this respect, the organization aims to improve the efficiency and the effectiveness with which it responds to disasters and other emergencies to help save lives. For instance, the Red Cross was negatively criticized for not responding promptly (American Red Cross, 2006). As such, the organization currently plans to improve its response effectiveness to ensure satisfaction of victims and stakeholders. Secondly, lack of financial stability has also been a major issue for the organization. This normally affects its response to disasters and other emergencies in certain parts of the country. Currently, the Red Cross relies mostly on donor funding, which affects its independence and operations. In response, the organization plans to strengthen its financial stability in the coming years by introducing products and services, which can generate revenue for the organization and reduce its overreliance on donor funding (Irwin, 2013). Additionally, the Red Cross intends to increase its brand awareness throughout the country by opening more branches at the local community levels to ensure faster response and recovery in case of an emergency or disaster. Further, the Red Cross also allows understand that its effectiveness depends largely on the kind of workforce it has (Irwin, 2013). Accordingly, the organization plans to build an effective performing workforce to ensure high victim and stakeholder satisfaction. Administration and Management Administratively, the Red Cross managed by the board of governors who are responsible for overseeing the management and the organization. The board has between 12-20 members consisting of the chairperson and the president and other board members (Ferrell and Ferrell, 2012). The Red Cross is headed by the president who is elected by the board of governors. The president is responsible for providing leadership and ensuring that the organization meets its objectives and missions of providing humanitarian assistance to the vulnerable and those affected by disasters. The organization is also divided into local chapters, which are headed by regional managers. For instance, each state has a regional chapter headed by managers who identifies the programs priority required in the community and respond effectively. As earlier stated, the Red Cross services are provided mainly by a team of volunteers drawn from different parts of the country. Currently, the organization plans to ensure that the volunteers who work for the organization become as diverse as possible. However, Red Cross also has about 40,000 salaried employees, consisting mainly of nurses. References American Red Cross. (2006). From challenge to action: American Red Cross actions to improve and enhance its disaster response and related capabilities for the 2006 hurricane season and beyond, 1-24. American Red Cross. (2015). Gail J. McGovern, President and CEO. Retrieved from http://www.redcross.org/gail-j-mcgovern Ferrell, O. C., & Ferrell, J. F. (2012). Business ethics: Ethical decision making & cases. Cengage Learning. Grabianowski, E. D. (2006).  How the American Red Cross works.   Retrieved from http://money.howstuffworks.com/american-red-cross.htm Irwin, J. F. (2013). Making the world safe: The American Red Cross and a nation's humanitarian awakening. Oxford, NY: Oxford University Press. Jones, M. M. (2012). The American Red Cross from Clara Barton to the new deal. New York, NY: JHU Press. Kosar, K. R. (2006). The Congressional charter of the American National Red Cross: Overview, history, and analysis. CRS Report for Congress, RL33314, 1-29. Winston, W., Stevens, R. E., Loudon, D. L., Migliore, R. H., & Williamson, S. G. (2013). Strategic planning for not-for-profit organizations. Princeton, NJ: Routledge Read More