Oxfam, a prominent UK charity, is facing a severe crisis following allegations of sexual abuse by its employees in countries it operates. The scandal involves accusations of using sex workers and alleged cover-ups by the organization.
Hundreds of donors have canceled their contributions, and Oxfam risks losing tens of millions in government funding from the UK and EU. The crisis has led to calls for the chief executive's resignation, with some predicting the charity's potential 'obliteration'.
Experts in reputation and crisis management believe the situation could be terminal for Oxfam, highlighting the severity of the damage to its image and financial stability.
In the space of a week Oxfam has gone from one of the country’s best known charities, fronted by some of the biggest names in Hollywood, to an organisation facing “obliteration” in the wake of the escalating sexual abuse crisis.
The scandal, in which it is alleged that the charity covered up allegations its employees used sex workers in countries it was meant to be helping, has seen hundreds cancelling their direct debits to Oxfam.
The charity also now faces losing tens of millions of pounds of annual funding from the UK and EU governments.
Nigel Evans, a senior Conservative MP and member of a committee investigating the allegations, said Oxfam was now “facing obliteration” and called for its chief executive to resign.
Robin Swinbank, MD of reputation and crisis management consultants The Counsel House, told the Telegraph the unfolding crisis could indeed prove terminal for Oxfam.
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