Red Cross: Its Nonprofit Business

Red Cross: Its Nonprofit Business Model

External Factors/Internal Factors

Innovation

As a non-profit, charitable organization committed to aiding the sick and needy, the Red Cross must be continually responsive to changes in the geopolitical situation, in terms of how it distributes its aid. Although it is a nonprofit, it is still subject to the economic laws of supply and demand, and operates in a world of finite human and physical resources. However, it wishes to give the best quality and most technically sophisticated care to persons in need. It tries to operate where the need its greatest, but it also must address local conditions, as some individuals donate to their local chapters because of the specific impact the organization has had upon their communities at home, as well as far away in America, and internationally.

On its website, the American Red Cross has made use of modern technology by allowing individuals to quickly find their local chapter by zip code, as well as learn about efforts far away. The Red Cross, to maintain its image and functionality as a responsive organization that still addresses crisis situations proudly boasts on its website that it is helping victims of the current, tragic bridge collapse in Minnesota, is continuing to help victims of Hurricane Katrina, and also provides long-standing programs that address on-going rather than crisis-level community and human needs like teaching the autistic to swim (American Red Cross Website, 2007).

Ethics

Ethically, the Red Cross strives to be politically neutral in most of its efforts -- the American Red Cross stresses personal readiness and preparedness on its website, rather than takes a position on anti-terrorist operations, for example, or bridge inspection. For the International Red Cross, political neutrality is of particular concern, as to safely travel in unsafe areas and solicit donations from multiple sources, the organization cannot appear to be biased in its ideology. Its mission is formulated as thus: "The International Committee of the Red Cross (ICRC) is an impartial, neutral and independent organization whose exclusively humanitarian mission is to protect the lives and dignity of victims of war and internal violence and to provide them with assistance" (International Red Cross Website, 2007). However, inevitably in the eyes of some people, simply by going into volatile areas and helping civilians in war-torn regions the Red Cross may appear to be taking sides. When it is appropriate and what aid to bestow on an internal level will no doubt be an issue of contention and constant debate within the management of the organization on a continual basis.