I don't see a problem with it (j/k), I missed the 2nd jpg so the edit below is from the 1st jpg posted (the very red one). Had a bit of time over lunch, I have posted the workflow after the image. I use PaintShop Photo Pro X3 so some of the terminology might be a bit alien.
I think the camera is doing an admerable job under the conditions, I think the white balance is the main issue and I would be deliberatly over exposing slightly to get more detail back from your raw.
I guessed the skin tone and as a good pointer there appears to be a white caucasian female to the left of the main subject and it was easier to use her skin tone as a pointer than the main subjects as he has very dark features but could be almost any skin tone. I also tried to keep the warmth in the picture as it looks like a happy time.
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Workflow (bit backwards and forwards to resolve color issues in places):
White Balance
- Temprature 6000
- Tint 80
-20% red channel
-15% saturation
+5 (of 255) Brightness
Histogram Adjusment
- Expand Mid-Tones by 8%
- Set Gamma to 1.15
Remove Digital Camera Noise
Unsharp Mask (Whole Image)
High-Pass Sharpen 40% hard light (face inside of hairline and edge)
Fill flash 30% (was a little dark on the main subject)
Still a bit red removed another 10% from red channel
Work on lens flare
- Freehand mask very edge of colar and around flare with extra at front and back
- Convert mask to layer
- Use push brush to get edge of colar correct
- Merge layers again
- Use smaller push brush from back of colar to get big enough area to copy/past
- copy/paste down colar rotating if required
- 25% opacity push brush used over joins
- select new area and apply noise to make consistant with image
- freehand select edge of colar and soften
- burn some parts of new colar to make consistant look