Ethical Issues in NPOs by tanvir6696

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									                   Ethical Issues
           and Considerations
             in Being Engaged
               With A Nonprofit

                                    Led by
                         Sherry B. Scott

                            Course # 109


  Center for Community-Based and Nonprofit Organizations
                at Austin Community College
“A community partnership broadening the horizons and possibilities for nonprofits -
    Helping community-based and nonprofit organizations reach their potential”



                                                    www.austincc.edu/npo
                                                www.strategic-creativity.org
                                                  Barry Silverberg, Director
                                                    bsilverb@austincc.edu
                                                             (512) 223-7076
                                     Sherry B. Scott, Ph.D.
                                       Sherry Scott Consulting
                          10300 Jollyville Road, Ste. 812, Austin, TX 78759
                            (512) 346-4196, scottsherry@sbcglobal.net


Who is this person standing before you to lead today’s learning session? Currently, she owns and
operates Sherry Scott Consulting in Austin, Texas, a communication and human resource consulting and
training company. The following experiences and accomplishments explain how she qualifies to present
this course to you:

Formal Education
       • Ph. D. — The University of Maryland, College Park, MD in Instructional Design
       • M. A. — The American University, Washington, DC in English
       • B. B. A. — University of North Texas, Denton, TX in Business Education
       • Society for Human Resource Management (SHRM) Generalist Certification

Consulting / Training / Working Experience
Dr. Scott’s consulting and training experience ranges from the top of an oil storage tank to the floor of an
office building to the corporate boardroom. Her business management and communication teaching
experience ranges from Texas, Maryland and Virginia university classrooms to international corporate
classrooms in Europe, Australia, and the Far East. She has taught business and English classes in
universities, community colleges, and high schools.
Dr. Scott designs and develops training programs and courses ranging from full company curriculum to
short on-site workshops. She teaches various communication skills and human resource topics to
business, non-profit, military and government employees from local, state, and federal agencies. Her
topics include business writing, speaking and presenting, multicultural communication, gender
communication, business etiquette, performance reviews, strategic human resource management, and
employee relations. Her entrepreneurial courses help small-business owners improve their chances for
success.
In a Fortune 100 corporation, she trained employees from 20 countries who were mainly learning in a
second language to write and present in English-speaking corporate situations.
In a privately owned health care corporation, she taught department executives the skills needed to write
strategic plans.
Her training workshops and materials feature both English and Spanish versions for companies in the
building services and housekeeping industry.
Sherry also worked as Human Resources Director for a corporation of 1000+ employees where she was
involved in all areas of human resources including strategic goal setting, employee relations, and
employee development. She also edited their industry award-winning newsletter.
A seasoned presenter, she regularly appears before national convention audiences in the communication
and building services industries. Her publications include professional articles and a newspaper column.
She also volunteers her expertise to various non-profit, charitable, and professional organizations.
She learned about running a business by participating in a family-owned retail store and funeral home.
She has worked as a telephone operator, legal secretary, and even a school bus driver who survived
several years as high school senior class sponsor. A native Texan, she has lived and worked in Europe
and has worked and traveled extensively all over the world.
All these pieces support the framework for the professional training knowledge and experience she brings
to your course. She firmly believes the best learning goes on for a lifetime and should be enjoyable and
even humorous.
Professional Affiliations
 • American Society for Training &                      •    Greater Austin Chamber of
     Development                                             Commerce
 • Association for Business Communication               •    Society for Human Resource
 • Association for Professional                              Management
     Communication Consultants
Ethics in Nonprofits                                                                                                                 3




                                             Table of Contents

Introduction......................................................................................................................... 4

Differences in Ethics........................................................................................................... 5

Values or Ethics .................................................................................................................. 6

Nonprofit vs. For-Profit Ethics ........................................................................................... 7

A Code of Ethics............................................................................................................... 10

Case Studies ...................................................................................................................... 12

My Responsibilities .......................................................................................................... 16

Resources .......................................................................................................................... 17




©Sherry Scott Consulting                                                                                              December, 2002
Ethics in Nonprofits                                                                                           3




                                       Sherry B. Scott, Ph.D.
Who is this person standing before you to lead today’s learning session? Currently, she owns and operates
Sherry Scott Consulting in Austin, Texas, a communication and human resource consulting and training
company. The following experiences and accomplishments explain how she qualifies to present this course
to you:
Formal Education
           •    Ph. D. — The University of Maryland, College Park, MD in Instructional Design
           •    M. A. — The American University, Washington, DC in English
           •    B. B. A. — University of North Texas, Denton, TX in Business Education
           •    Society for Human Resource Management (SHRM) Generalist Certification
Consulting / Training / Working Experience
Dr. Scott’s consulting and training experience ranges from the top of an oil storage tank to the floor of an
office building to the corporate boardroom. Her business management and communication teaching
experience ranges from Texas, Maryland and Virginia university classrooms to international corporate
classrooms in Europe, Australia, and the Far East. She has taught business and English classes in
universities, community colleges, and high schools.
Dr. Scott designs and develops training programs and courses ranging from full company curriculum to
short on-site workshops. She teaches various communication skills and human resource topics to business,
non-profit, military and government employees from local, state, and federal agencies. Her topics include
business writing, speaking and presenting, multicultural communication, gender communication, business
etiquette, performance reviews, strategic human resource management, and employee relations. Her
entrepreneurial courses help small-business owners improve their chances for success.
In a Fortune 100 corporation, she trained employees from 20 countries who were mainly learning in a
second language to write and present in English-speaking corporate situations.
In a privately owned health care corporation, she taught department executives the skills needed to write
strategic plans.
Her training workshops and materials feature both English and Spanish versions for companies in the
building services and housekeeping industry.
Sherry also worked as Human Resources Director for a corporation of 1000+ employees where she was
involved in all areas of human resources including strategic goal setting, employee relations, and employee
development. She also edited their industry award-winning newsletter.
A seasoned presenter, she regularly appears before national convention audiences in the communication
and building services industries. Her publications include professional articles and a newspaper column.
She also volunteers her expertise to various non-profit, charitable, and professional organizations.
She learned about running a business by participating in a family-owned retail store and funeral home. She
has worked as a telephone operator, legal secretary, and even a school bus driver who survived several
years as high school senior class sponsor. A native Texan, she has lived and worked in Europe and has
worked and traveled extensively all over the world.
All these pieces support the framework for the professional training knowledge and experience she brings
to your course. She firmly believes the best learning goes on for a lifetime and should be enjoyable and
even humorous.
Professional Affiliations
 •     American Society for Training &                        •   Greater Austin Chamber of Commerce
       Development                                            •   Society for Human Resource Management
 •     Association for Business Communication
 •     Association for Professional Communication
       Consultants




©Sherry Scott Consulting                                                                         December, 2002
Ethics in Nonprofits                                                                          4




Introduction
Discussions about ethical issues dominate the news today from boardrooms to living
rooms. Questions surrounding corporate activities lead the focus, but nonprofit and
community organizations are also receiving intense scrutiny. This workshop features
individual exercises, group discussion, and case studies intended to answer these
questions:

     •     Do ethics mean different things to different people?

     •     What is the difference between ethics and values?

     •     Are nonprofit organizations different from for-profit organizations?

     •     How can my organization clarify our Code of Ethics?

     •     What are my personal and organizational ethical responsibilities?

Objectives
At the end of this workshop, you should be able to:

           Identify your personal values and ethics

           Identify your organization’s values and ethics

            Examine ethical dilemmas and apply a decision-making process to resolve them

            Understand the role of ethics in nonprofit organizations

            Examine and clarify your organization’s Code of Ethics

            Recognize your personal and organizational ethics responsibilities




    Confidentiality Agreement: Due to the sensitive nature of this topic, please
    honor the confidentiality agreement and do not reveal any specific identification
  information shared during the discussions. Certainly, we are here to discuss issues,
       dilemmas, and resolutions; however, when taking the ideas back to your
             organization, please protect the privacy of everyone involved.




©Sherry Scott Consulting                                                          December, 2002
Ethics in Nonprofits                                                                   5




Differences in Ethics
       Exercise

 “Ethics Means ….” Do ethics means different things to different people?
    Notes:




Where Ethics Occur
 Management

 Accounting

 Human Resources

 Client Services

 Products

 Marketing / Advertising

 Donor Relations

 Community Relations




©Sherry Scott Consulting                                                   December, 2002
Ethics in Nonprofits                                                                       6




Values or Ethics
Values
     •     Revered — clear, uncompromising statement about what is critically important
     •     Freely chosen — cannot be externally imposed; represent choice of
           person/organization
     •     Expressed — acted upon (easy when action and values agree; difficult when
           action and values disagree)
     Exercise: Values Clarification
                                                     1              2              3
 Achievement, Accomplishment
 Affluence
 Altruism
 Beauty
 Career Advancement
 Challenge
 Close, Meaningful Relationships
 Collaboration
 Creativity
 Enjoyment of Life (fun, leisure)
 Environmental Responsibility
 Financial Security
 Freedom
 Good Health
 Harmonious, Happy Family Life
 Helping Others
 Honesty
 Justice
 Knowledge
 Love, Affection
 Loyalty
 Moral Courage
 Power
 Religion
 Respect From Others
 Self-Expression
 Sharing
 Status
 Wisdom


©Sherry Scott Consulting                                                       December, 2002
Ethics in Nonprofits                                                                          7



Problems With Values
   • Person may be trying to adopt someone else’s values without making a conscious
      choice
   • Person may not be clear about his/her real values
   • External pressures may force someone to act again his/her values

Ethics
Ethics form structure that converts values into action. Ethics are:
   • Value Driven — bridge value and action; translate values into appropriate or
        inappropriate behavior in the realities of life
            o Organizational — policies regarding how employees will deal with clients,
               donors, members, etc.
            o Personal — acting in concert with your beliefs
   • Action oriented — “Do the right thing”
            o Value = honesty; ethic = disclose contribution
            o Value = clean environment; ethic = recycle copier toner
   • Situational — value expressed in ethical action depending on circumstances
            o Value = life; ethic = do not kill; situation = self-defense
            o Value = honesty; ethic = do not steal; situation = sick child needs meds

                           Values                                  Ethics
       Define individual / organization          Translate values into actions
       Constant                                  Change
       Internally derived                        Determined by situation
       Concerned with virtue                     Concerned with justice
       General                                   Highly specific
       Stated morally                            Stated behaviorally
       Judged good / bad                         Judged present or absent
       Set priorities                            Set boundaries for appropriate
                                                 behavior

Boundaries — with a Code of Ethics in place — Individuals are responsible for their
own actions. “I didn’t know” is no defense.


Nonprofit vs. For-Profit Ethics
     •     A for-profit organization conducts its business with the purpose of making a
           profit.
     •     A nonprofit organization does not conduct its business with the purpose of
           making a profit.




©Sherry Scott Consulting                                                          December, 2002
Ethics in Nonprofits                                                                           8




Local Ethics Award*
The Samaritan Center, in partnership with St. Edward’s University, has established the
Samaritan Center Ethics in Business Awards, inspired by programs which have advanced
the ethical climate in Colorado and New Mexico. Co-chairs for the Awards are the
distinguished Mary Scott Nabers and Max Sherman. In November 2002, the first Awards
were given to three Central Texas businesses, a nonprofit organization, and an individual
with a proven commitment to develop and practice the highest ethical standards in their
policies, programs and actions.

Business Award Criteria
The research process for each business (25 or more employees) will examine the:
     1. General background of the company, including its history, location, reputation,
        size, financial profile, record of earnings, and geographic markets
     2. Employee relationships including the company’s policies and practices regarding
        salaries, benefits, promotion, and layoffs; the level of opportunity for and
        responsiveness to employee concerns; treatment of part-time employees; policies
        and actions to encourage the hiring and promotion of women, ethnic minorities,
        and the physically and mentally disabled; family-friendly policies; the handling of
        discrimination and sexual harassment claims; training and in-service education
        programs, tuition assistance, and the priority given to ethical behavior in
        personnel evaluations
     3. Organizational design of the company as it relates to ethics, including mission
        statements, ethics policies, codes of conduct, ethics training, ethics officers, and
        mediation or resolution processes
     4. Relationships with customers as demonstrated in the consistent quality of
        products and services, accuracy and fairness of advertising, fairness in pricing,
        and a formal ethics component in sales force training
     5. Relationships with suppliers as demonstrated in fair treatment, use of local
        suppliers when possible, formal policies pertaining to gifts, assistance to local
        vendors to meet its standards of production, design and delivery, and proven
        ethical conduct in their buyer/seller relationships
     6. Community relationships as demonstrated in harmful or helpful policies and
        actions, the solicitation of community input, clear communication regarding
        projects materially affecting the community, participation in and the impact of
        employee volunteer programs and activities; the percentage of after-tax profits
        contributed to philanthropic projects, and the preservation of the environment

Non-profit Award Criteria
This award is given to a nonprofit (501)(c)(3) organization that demonstrates an
exceptionally high level of effectiveness and ethical behavior in carrying out its stated
mission. The selected nonprofit organization must:
      1. Clearly demonstrate ethical conduct in the treatment of staff and the handling of
         the clients/constituents they serve



©Sherry Scott Consulting                                                           December, 2002
Ethics in Nonprofits                                                                           9



      2. Exhibit consistent quality in its service delivery and integrity in fund raising
      3. Be properly governed and carefully maintain its fiduciary responsibilities in
         terms of board selection and financial management
      4. Partner effectively with other nonprofits, business, and/or government

Individual Award Criteria
The background review of selected nominees for the award to an individual will involve
extensive interviews with persons who know the individual in a variety of contexts in
order to determine how the nominee:
      1. Meets the highest ethical standards
      2. Is a model and mentor for others
      3. Exhibits strong qualities of fairness and integrity
      4. Is an acknowledged leader according to others in their field of business or service
         and the community
      5. Has a history and reputation of ethical practices
*Source: www.samaritan-center.org/ethics

   Exercise — Use the award criteria plus your own experience and understanding and
 compare ethics in for-profit and nonprofit organizations.
 Notes:




©Sherry Scott Consulting                                                           December, 2002
Ethics in Nonprofits                                                                     10




A Code of Ethics
A Code of Ethics can be created from several models. A human resources professional
and legal counsel can refine a Code to fit the values and needs of the specific
organization.

Characteristics
Five characteristics of a Code of Ethics include:
   • Visibility — everyone subject to it must be aware of it
   • Reflection of group values — the organization’s value system
   • Supportive of individual values — establishes boundaries of behavior and must
       represent values of most of the members to be functional
   • Focus on behavior — specific actions described
   • Responsive to day-to-day conditions — concrete and pragmatic rather than
       abstract and idealized

Function
A Code of Ethics does the following:
   • Describes appropriate behavior
   • Assigns individual responsibility
   • Creates a social contract
   • Provides a safe environment
   • Defines the organization’s identity

Contents
A Code of Ethics should address at least the following areas:
   • Organizational values
   • Compliance and laws
   • Confidentiality
   • Conflicts of interest / Appearance of conflict of interest
   • Fiduciary responsibility
   • Employment policies
   • Fund-raising procedures and reporting
   • Organizational assets and resources
   • Gifts, gratuities and entertainment
   • Environment (if relevant)

Implementation
Once an organization completes its Code of Ethics, the following steps provide a plan to
implement it:
   1. Distribute the Code to all employees
   2. Help employees understand the intent and application
   3. Specify management’s role in implementation


©Sherry Scott Consulting                                                      December, 2002
Ethics in Nonprofits                                                                        11



     4. Inform employees of their responsibilities
     5. Establish grievance procedures
     6. Distribute to stakeholders and confirm their expectations

Sample Code of Ethics
                           American Society of Association Executives
                                      Standards of Conduct
       As a member of The American Society of Association Executives, I pledge
       myself to:
          • Maintain complete loyalty to the association that employs me and
              aggressively pursue its objectives.
          • Hold inviolate the confidential relationship between the individual
              members of my association and myself, and the confidential information
              entrusted to me through the association office.
          • Serve all members of my association impartially, and to provide no
              special privilege to any individual member, nor to accept special
              personal compensation from an individual member, except with the
              knowledge and consent of my association.
          • Neither engage in, nor countenance, any exploitation of my association,
              industry or profession.
          • Recognize and discharge my responsibility and that of my association to
              uphold all laws and regulations relating to my association’s activities.
          • Exercise and insist on sound business principles in the conduct of the
              affairs of my association.
          • Use only legal and ethical means if I should seek to influence legislation
              or regulation; issue no false or misleading statements to the public.
          • Refrain from the dissemination of any malicious information concerning
              other associations and/or other Association Executives.
          • Accept my responsibility for cooperating in every reasonable and proper
              way with other Association Executives.
          • Utilize every opportunity to improve public understanding of the
              principle of voluntary associations.
          • Maintain high standards of personal conduct.
       This code of Standards of Conduct for members of the American Society of
       Association Executives has been adopted to promote and maintain the highest
       standards of association service and personal conduct among its members.
       Adherence to these standards is required for membership in the Society, and
       serves to assure public confidence in the integrity and service of Association
       Executives.
                 www.iit.edu/departments/csep/PublicWWW/codes/coe/asae-a.htm




©Sherry Scott Consulting                                                         December, 2002
Ethics in Nonprofits                                                                       12




Ethical Decisions
This 7-step model provides a way to work through making decisions when ethical issues
are involved: [Ironically, this model was introduced by Arthur Anderson, Inc. in 1992.]
    1. Establish the facts
    2. Identify the ethical issues
    3. Define alternative options
    4. Identify the primary stakeholders for each alternative
    5. Identify the ethics of the alternatives
    6. Identify practical constraints
    7. Determine alternative [action] to take


Case Studies
1. Your organization is outgrowing your office space, and one of your strategic goals is
   to move into a larger place. However, a tight budget is delaying the move because
   your rent would undoubtedly increase. A wealthy couple approaches your Board of
   Directors and offers to give you a small office building. It is located in an affluent
   neighborhood (not on public transportation lines) and is really too large for your
   needs, but it’s free. They stipulate that your organization cannot use the building for
   any other purpose including leasing space to other tenants. Most of your clients live
   far from this area, and many need transportation to your office to use your services.
   How would you handle this gift offer?




©Sherry Scott Consulting                                                        December, 2002
Ethics in Nonprofits                                                                    13



2. Your staff is shopping for a new office supply vendor , and your Executive Director
   asked you to compare prices. One of your major donors owns and operates ASC (an
   office supply company) and expressed interest in your business. You found that ASC
   is considerably more expensive than the others included the information in your price
   comparison report. Later, you learn that ASC is the new vendor. How would you
   respond?




©Sherry Scott Consulting                                                     December, 2002
Ethics in Nonprofits                                                                       14



3. You and several co-workers attended a conference in New Orleans; they have made
   similar trips with this organization, but it is your first. You kept your expenses very
   low by using the hotel airport shuttle ($12 round trip), saving a roll from dinner for
   breakfast, and doing your laundry in the bathroom. Part of your job involves
   comparing receipts with expense reports, and when you review the expense receipts
   of your co-workers, you see that they each used a taxi ($30 one way), ordered room
   service breakfast, consumed several mini-bar items, sent clothes to the hotel laundry,
   and bought tickets to a concert. What (if anything) do you say to your Supervisor?




©Sherry Scott Consulting                                                        December, 2002
Ethics in Nonprofits                                                                      15



4. Your organization depends heavily on volunteers for many tasks and projects. One
   volunteer, an attorney, has performed services previously as a volunteer. This time,
   you receive a bill for the services. When you ask, the attorney says, “Oh, I can’t
   afford to not bill for my time any more. It’s the economy, you know.” How would
   you handle this bill?




©Sherry Scott Consulting                                                      December, 2002
Ethics in Nonprofits                           16




My Personal Responsibilities & My
Organization’s Responsibilities:




©Sherry Scott Consulting            December, 2002
Ethics in Nonprofits                                                                           17




Resources
Ethics Quick Test
The following set of questions appears as a quick way to test the state of ethics in your
organization. For more information or to take the test and receive an “evaluation, ” see:

                            www.ethics.org/quicktest/quicktest.cfm

 Rate these statements from 1(agree) to 5(disagree)                  1   2    3      4     5
 Clear Organizational Values
 1. The organization’s values are consistent with each other so
     that its expectations are clear.
 2. Employees at all levels understand the organization’s
     fundamental values.
 3. Value statements are perceived as valid guidelines for
     decision-making in the absence of policy or precedent.
 4. Stated values address the actions of the organization as it
     deals with its employees.
 5. Stated values address the organization’s dealings with
     customers and suppliers.
 6. The rules for doing business stay the same in good times and
     when things are not going well.
 7. People know where to go for guidance when they need an
     interpretation of organizational values.
 Ethics, Strategy, Goals and Objectives
 8. The organization’s stated values are consistent with the
     values and ethics of the business community.
 9. The organization’s strategy clearly defines success in terms
     of its ethics values.
 10. Employees at all levels understand the organization’s ethics
     goals and objectives.
 11. Ethics goals and objectives are as important as production,
     quality and financial goals and objectives.
 12. Employees at all levels have ethics goals and objectives for
     which they are held accountable.
 13. The ethics strategy deals with all key stakeholders (e.g.
     employees, customers, suppliers, competitors, unions).
 14. Ethics goals and objectives are considered in day-to-day
     decision-making.
 15. People believe there is a direct connection between ethics
     goals and objectives and their individual success.
 16. The ethics strategy is periodically reviewed and updated as
     the business changes and/or grows.




©Sherry Scott Consulting                                                          December, 2002
Ethics in Nonprofits                                                            18




 Ethics Policies and Procedures
 17. Ethics policies and procedures define what behavior is
     consistent with the ethics strategy.
 18. Ethics policies and procedures are effectively communicated
     to all employees.
 19. Employees view these ethics policies and procedures as
     important guidelines for day-to-day decision-making.
 20. Employee adherence to ethics policies and procedures is
     regularly monitored.
 21. There are clearly articulated consequences for deviations
     from or violations of these policies and procedures.
 22. Ethics policies and procedures are compatible with all other
     operational policies and procedures.
 23. People accept these policies and procedures as relevant and
     important for their unique working environment.
 24. The ethics policies and procedures are periodically reviewed
     and updated.
 Measures of Ethical Effectiveness
 25. Conformance to each of the organization’s ethics policies
     and procedures is routinely monitored and measured.
 26. The continuing effectiveness of each ethics policy and
     procedure is routinely monitored and measured.
 27. Results of periodic ethics measurements are included in
     discussions of overall organization performance.
 28. Leaders are held accountable for the ethics effectiveness of
     the organizational unit(s) they oversee.
 29. Individuals are held accountable for their personal
     conformance to organizational ethics standards.
 30. Results from ethics monitoring are integrated into personnel
     appraisals and performance reviews.
 31. The organization has processes for auditing/evaluating ethics
     measurements to ensure reporting accuracy.
 Rewards for Ethical Behavior
 32. Conformance to ethics policies and procedures is necessary
     for a positive performance review.
 33. The ethical effectiveness of individual decisions and actions
     is considered in evaluating employee behavior.
 34. Employees routinely receive positive feedback from
     supervisors when they make ethically sound decisions.
 35. Leaders are rewarded for the ethical effectiveness of the
     organizational unit(s) they oversee.
 36. There is a high level of peer support for adhering to the
     organizations’ ethical standards within the work group.
 37. Employees are rewarded for suggesting ways to increase
     ethical congruence in the workplace.


©Sherry Scott Consulting                                             December, 2002
Ethics in Nonprofits                                                              19




 38. The organization considers ethical effectiveness when
     evaluating a candidate for promotion.
 Guidelines for Ethical Decision-Making
 39. Guidelines exist to assist leaders at all levels in making
     appropriate decisions on ethics related matters.
 40. Because ethics guidelines are consistent with policies and
     practices, they do not create confusion or conflict.
 41. Written guidelines are supplemented by trained ethics
     support personnel who can offer additional guidance.
 42. Employees know how to obtain guidance when facing an
     ethics related question for which no policy exists.
 43. People differentiate between ethics policies (which are
     enforced) and ethics guidelines (which offer direction).
 44. Ethics guidelines are effective in helping people cope with
     situations where there is no prescribed solution.
 45. People are held accountable for their effective use of existing
     ethics guidelines.
 46. Guidelines for ethical decision-making are periodically
     reviewed and updated as needed.
 Assessing the Ethical Climate
 47. Formal processes exist to assess the level of employee
     commitment to the organization’s definition of ethics.
 48. The organization’s ethical climate is routinely assessed as
     part of overall organizational reviews.
 49. Supervisors understand their impact on the ethical climate of
     the work groups they manage.
 50. Employees understand the impact of the ethical climate on
     productivity, quality, and customer service.
 51. The organization recognizes that commitment to a set of
     values means more than just following ethics rules.
 52. Employees understand and agree with the organization’s
     ethics expectations and requirements for success.
 53. Individuals understand the relationship between their
     personal values and the values of the organization.
 54. Leaders realize that most decisions/actions which improve
     the ethical climate are ultimately beneficial.
 Building Support for Ethical Practices
 55. People at every level of the organization recognize their
     responsibility for supporting ethical practices.
 56. Leaders find frequent opportunity to reinforce the validity of
     the organization’s ethical positions.
 57. Supporting the ethics positions of the organization is
     rewarded both formally and informally.
 58. Employees are involved in helping shape and/or revise ethics
     practices when required.



©Sherry Scott Consulting                                               December, 2002
Ethics in Nonprofits                                                              20




 59. The organization’s focus is on ethical behavior, not just on
     ethics related rhetoric.
 60. Written guidelines are provided to help people reach
     ethically congruent decisions.
 61. Individuals are expected to apply the organization’s ethical
     guidelines to every aspect of their jobs.
 62. Management consistently models conformance to desired
     ethical practices.
 Ethical Leadership Practices
 63. Leaders understand the organization’s ethical requirements
     and expectations.
 64. Leaders act in ways that are ethically consistent with what
     they require of those they lead.
 65. Leaders regard their ethical responsibilities to be as, or more
     important than, any other responsibility.
 66. Employees know that they can freely approach any leader to
     raise an ethics question.
 67. Leaders take the initiative in resolving potential ethical
     conflicts in day-to-day business operations.
 68. Leaders know whom within the organization they can turn to
     for guidance when facing unique ethics situations.
 69. Leaders freely accept accountability for the ethical content of
     the decisions and actions of those they lead.
 70. Leaders routinely recognize and reward the ethical decisions
     and actions of those they lead.
 Evaluating the Impact of Ethical Practices
 71. Processes exist to gauge the impact of ethical behavior on
     employee commitment to organizational goals.
 72. Supplier attitudes towards the advantages of working with
     ethical organizations are monitored.
 73. The organization knows to what extent ethical conflict
     contributes to sub-par employee performance.
 74. Political, regulatory and special interest groups are aware of
     the organization’s ethics standards.
 75. Consumers understand the ethical standards and practices
     that govern transactions.
 76. The ethical standards of the organization influence decisions
     and actions in all groups, units and departments.
 77. The impact of ethical standards on economic performance is
     evaluated.
 Ethics Education and Training
 78. Training exists to orient new employees on the ethical
     standards and practices of the organization.
 79. Leaders receive formal training on how the ethics of their
     decisions and behaviors impact employees.



©Sherry Scott Consulting                                               December, 2002
Ethics in Nonprofits                                                                       21




 80. People are trained on both the how-to’s and the why-to’s of
     the organization’s ethics policies and procedures.
 81. Employees are trained on how to use the performance
     evaluation process to support ethical practices.
 82. People are trained on how to clarify their personal values and
     how to assess their ethical congruence.
 83. Training on the use of data from ethics effectiveness and
     climate assessments is available to managers.
 84. People are encouraged to seek training that will prepare them
     to more effectively support ethical practices.
 Respect for Employees’ Personal Values
 85. Employees’ values are considered when formulating
     organizational practices, policies and procedures.
 86. Leaders seek congruence between their decisions and the
     values of the employees who must implement them.
 87. People are encouraged to express any ethics concerns they
     may have which relate to the job.
 88. Employees are given training and support in clarifying and
     expressing their personal values.
 89. Assessments of ethical climate and effectiveness include
     attention to employee values.
 90. Leaders are rewarded and recognized for increasing
     congruence between organization and employee values.
 91. People are listened to when they identify ethical concerns
     about any aspect of the job.
 92. Employees have the opportunity to influence key decisions
     where those decisions create ethical issues.



Information Centers
 Business for Social Responsibility is a global
 organization that helps member companies achieve
                                                                  www.bsr.org
 success in ways that respect ethical values, people,
 communities and the environment.
 Center for Business Ethics, Bentley College
 provides an “international forum for the                       www.bentley.edu
 advancement of business ethics.”
 Center for Ethics and Moral Leadership at St.
 Edward's University is to provide an organizing
 focus for curricular studies and co-curricular
 activities stemming from our Holy Cross and
                                                           www.stedwards.edu/ethics
 Catholic heritage and from our University Mission
 Statement's commitment to the dignity of all
 individuals.



©Sherry Scott Consulting                                                        December, 2002
Ethics in Nonprofits                                                                    22




 Council for Ethics in Economics is a nonprofit
 worldwide association of leaders in business,
 education, religion and other professions working        www.businessethics.org
 together to “strengthen the ethical fabric of
 business and social life.”
 Ethics Officer Association is a U.S. based
 nonprofit, non-consulting professional association            www.eoa.org
 dedicated to promoting ethical business practices.
 Ethics Resource Center is a “nonprofit,
 nonpartisan educational organization whose vision            www.ethics.org
 is an ethical world.”
 Institute for Global Ethics is an “independent,
 nonprofit, non-sectarian, and non-partisan
 organization dedicated to elevating public                www.globalethics.org
 awareness and promoting the discussion of ethics in
 a global context.”
 The Joseph & Edna Josephson Institute of
 Ethics is a nonprofit membership organization that
 aims “to improve the ethical quality of society by      www.josephsoninstitute.org
 advocating principled reasoning and ethical
 decision making.”
 The Samaritan Center for Counseling and
 Pastoral Care is a not-for-profit interfaith
 counseling center whose ministry is committed to
 providing professional counseling, psychotherapy,      www.samaritan-center.org/ethics
 and educational service which affirms the spiritual
 dimension of life without regard to one's ethnic
 origin, economic status, age or religious affiliation.




©Sherry Scott Consulting                                                     December, 2002
Ethics in Nonprofits                                                                                                  23




                                    Sherry Scott Consulting
                                  Standards of Ethical Conduct
 We have an obligation to maintain the highest standards of ethical conduct. Recognizing this obligation,
 we agree to abide by the following code of professional ethics in providing consulting and training
 services.
 ♦     We agree to maintain the highest standards of service in all dealings with clients and their
       employees.
 ♦     In promoting services to prospective clients, we agree to —
       • Adhere to professional standards
       • Avoid misrepresenting professional qualifications and affiliations
       • Accurately represent services
 ♦     While providing services, we agree to —
       • Provide services only in those areas in which we are well qualified
       • Attempt to meet the specific needs of both the employees and the client organization based,
          whenever possible, on a critical evaluation of the needs of the organization
       • Base instructional techniques on the best and most recent research and informed opinion
       • Present improvement as a dynamic process instead of focusing solely on immediate concerns
 ♦     In dealing with information and materials used in the services, we agree to —
       • Consider all material provided to be confidential unless we receive permission to use the
           material outside the contracted situation
       • Protect the anonymity of the client organization and its employees when publishing materials
           derived from a contracted arrangement, unless given prior permission in writing to disclose the
           name of the organization or employee
       • Use no material from a contracted arrangement to disparage either a specific employee or a
           client organization
       • Refrain from using confidential information acquired in the course of the contract for unethical
           or illegal advantage
       • Conduct research involving the performance of employees of a client organization only with the
           prior knowledge and approval of the client organization
 ♦     In developing materials for a client, we agree to —
       • Provide clear, concise, readable copy that meets the needs of both the client and the intended
           readers
       • Develop and write copy in accordance with relevant laws, regulations, and professional
           standards
       • Be rigorously honest when writing sales or promotional materials, attempting to accurately
           represent the product or service of the client
       • Advise the client of the legal implications of the written materials
       • Advise the client when the written materials and practices of the client are not consistent with
           the ethical standards of the professional community
 ♦     In relating to other consultants and trainers, we agree to support and advance the profession,
       especially by acting as mentor to other consultants and trainers.
 ♦     In relating to an educational institution, we agree to —
       • Meet all obligations to the educational institution and to students at the institution
       • Meet the terms of any contract signed with the educational institution as they apply to
            consulting work
       • Use the facilities or supplies of the educational institution in consulting work only if the
            institution approves of such use and is adequately recompensed for it
       • Avoid conflicts of interest and advise the client and the institution of any potential conflict
 (Adapted from The Association of Professional Communication Consultants’ Standards of Ethical Conduct.)




©Sherry Scott Consulting                                                                                   December, 2002
ACC Center for Community-Based & Nonprofit Organizations – http://www.austincc.edu/npo



Notes
ACC Center for Community-Based & Nonprofit Organizations – http://www.austincc.edu/npo



Notes

								
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