(1)Since this case was written, the American Red Cross (ARC) has officially resolved its infrastructure and operational obstacles. However, very little progress has been made in reversing stakeholder perceptions regarding crisis response times, relief dispatch strategies, and ethical dilemmas plaguing the organization. Government mandates that streamlined the board of directors and established accounting and reporting parameters did little to change the organization's operating culture. Since 2002, the organization has had seven CEOs. This high turnover has raised concerns among stakeholders and government officials. Records indicate that the organization now has approximately 35,000 employees and its volunteer base remains at approximately 500,000. Under the leadership of current CEO and President Gail McGovern, the organization has eliminated the significant deficit that it had posted during the 2010 financial year. These recent developments demonstrate that the organization is progressive. Despite this, the ARC continues to face the same ethical obstacles as 20 years ago. Recent major national disaster relief events for which the Red Cross led efforts were the Haiti earthquake and Hurricane Sandy. A strategic alliance with Dell enabled ARC to implement a digital operations center for humanitarian assistance in 2011 (ARC, nd). Social media (Facebook and Twitter) and smartphone apps have also been added to the organization's communications arsenal as social media (Facebook and Twitter) communication tools and smartphone apps for tracking advance of storms, the evolution of crisis zones and real-time communications between ground teams and decision-making. management personnel (Zolkos, 2012). Although these communications...... middle of paper ......ts stakeholders and stabilized the internal culture. If the compensation of the organization's executives was tied to designated ARC performance indicators (Lytle, 2013), the organization could actually operate more efficiently.(5) There are a number of issues related to irregularities and legal, regulatory, and financial compliance which I would advocate be more effectively monitored by Congress. The significant amounts of donor funds that are misappropriated and subsequently never used for the purposes for which they were given greatly undermine the sustainability of the ARC. If the organization is to remain solvent and continue to rely on donor contributions, it needs a new financial management model that will restore stakeholder confidence and reduce instances of strategy misuse and some form of external governance donor funds..