(1) Since writing this case, it has been documented that the American Red Cross (ARC) has conceptually addressed its infrastructure and operational obstacles. However, very little progress has been made in reversing stakeholder perceptions, crisis response times, relief delivery strategies, and ethical dilemmas plaguing the organization. Government mandates that streamlined the board of directors and established accounting/reporting metrics have done little to change the organization's operating culture. Since 2002, the organization has had seven CEOs. This high turnover has sparked concern from stakeholders and government officials. Records indicate the organization now has about 35,000 employees and its volunteer pool still numbers about 500,000. Under the leadership of Gail McGovern, current CEO and President, the organization eliminated the large deficit recorded in fiscal year 2010. These recent developments demonstrate that the organization is progressive. Nonetheless, ARC continues to face the same ethical obstacles as it did 20 years ago. Recent major national disaster relief events, for which the Red Cross led efforts, were the earthquake that hit Haiti and Hurricane Sandy. A strategic alliance with Dell has enabled ARC to implement a digital operations center for humanitarian aid in 2011 (ARC, n.d.). Social media (Facebook and Twitter) and smartphone applications have also been added to the organization's communications arsenal as social media (Facebook and Twitter) and smartphone applications communication tools for advanced storm monitoring, crisis area developments and real-time communications between ground crews and decision-making. management staff (Zolkos, 2012). Although these communications… halfway through the document… stabilized the internal culture. If compensation for the organization's executives were tied to performance indicators designated for ARC (Lytle, 2013), the organization could actually operate more efficiently and effectively. (5) There are a number of issues related to legal, regulatory, and financial irregularities and compliance that I would argue Congress should monitor more effectively. Large amounts of donor funds that are misappropriated and subsequently never used for the purpose for which they were donated significantly compromise the sustainability of the ARC. If the organization is to remain solvent and continue to rely on donor contributions, a new financial management model is needed that will restore stakeholder trust and reduce the occurrence of strategy malpractice and some form of external governance of donor funds. donors..