Introduction
The WE Charity scandal is, perhaps, among the most notorious instances of large-scale fraud perpetrated in Canada. The charity, which was actively endorsed by Justin Trudeau, failed to meet its obligations while also actively violating Canadian labor laws and encouraging nepotism within its organizational framework (The Fifth Estate, 2021). Moreover, further investigation has demonstrated that the organization issued monetary rewards for Trudeau so that he would continue actively supporting and endorsing the WE Charity (The Fifth Estate, 2021). The observed findings proved that WE Charity’s claims of never providing Trudeau with financial incentives for his favoritism were false.
Activities
Several activities undertaken by WE Charity indicated that the organization did not represent the values it claimed to uphold. Specifically, the fact that WE Charity carried out suspicious property transfers in 2020, the fact that Margaret Trudeau was paid $180,000 in speaking fees, and Alexander Trudeau was paid $36,000 with the same reasoning, indicated that WE Charity’s relationships with the Trudeau family deserved further investigation. Students and volunteers were the primary victims of the organization’s unethical conduct (The Fifth Estate, 2021). However, in response, WE Charity denied Trudeau’s allegations of nepotism and favoritism.
Challenges
The scandal erupted due to WE Charity’s unethical and fraudulent behavior, which has created numerous negative implications for other charities in Canada. Specifically, trust between charities and their supporters has been undermined. As a result, the extent of funding for Canada’s non-profit and social enterprise sector is expected to drop.
Reaction
The content of the video was admittedly unpleasant and upsetting, yet it was hardly surprising. Fraud remains a notorious issue in the not-for-profit sector, so the early signs of the emergent problem were evident and worthy of consideration. Although the response to the controversy might seem to be overblown, it, in fact, should be regarded as proportional since it ensures that similar scenarios will be prevented in the future. However, the video raises the following questions:
- How could the situation in question be prevented?
- What key indicators of the emergent issue could have been considered to address the issue at the earliest stage?
These questions are important since they guide the reduction of fraud in the charity sector.
Reference
The Fifth Estate. (2021). The Price WE Paid: An investigation into WE Charity’s rise and fall from grace – The Fifth Estate. Youtube. Web.