Introduction
Ferrell, Fraedrich & Ferrell (2008) discuss that organizations are shifting from “legally based compliance initiatives in organizations to cultural initiatives that make ethics a part of core organizational values” (p. 10).
This means that firms are changing from need to enforce ethical standards to motivating workers to make ethical codes their habitual behavior. However, legal action is still necessary where employees fail to act in an ethical manner.
The consultant consists of 15 members according to the above structure. The consultant sections can decide to give a member specific areas to tackle. All members meet once a week to update on matters that are arising, and finding solutions to challenges.
Ethical codes and standards
Ethical standards require that organizations acknowledge their contributors. The agreements between the donors and the organization should be written, and adhered to. Some donors may prefer being anonymous to prevent further solicitation from other organizations (Ethics in Fundraising, 2013).
Some companies may have a business motive when funding nonprofit organizations. They use it as a marketing strategy. The nonprofit organizations may refuse funds from firms that associate funding with marketing their brands.
They can recommend that the anonymity of the donor be used. Nonprofit organizations will have the freedom to solicit funds from private firms to increase their areas of service.
It is unethical to pay fundraisers a percentage of the funds raised. Nonprofit organizations are encouraged to adopt the Donors’ Bill of Rights drafted by the Association for Fundraising Professionals (Ethics in Fundraising, 2013).
Ethical standards require that that those with a conflict of interest with the organization to reveal that interest. They should withdraw from voting on any matters that are associated with their area of interest. Staff members are encouraged to discuss how to solve conflicts of interest (Conflict of Interest, 2013).
The best ethical practices will require non-profit organizations to gradually adopt the Sarbanes-Oxley Act of 2002. It requires that organizations have an independent audit committee or hire an independent financial expert to carry out auditing. It has clauses about whistle-blower protection among others (Ostrower & Bobowick, 2006).
There is a need to retain official documents for a period in which a lawsuit can be brought forward regarding the conduct of the nonprofit organization (Document Retention Policies, 2013).
The public should be allowed access to relevant documents about “meeting agendas and descriptions of significant decisions” (Transparency and Accountability, 2013 para. 3).
Nonprofit organizations should adopt a mechanism that avoids providing services that are already catered for by other organizations. The provision of services should comply with fairness and equity practices.
Monitoring, auditing, and reporting misconduct
The firm’s auditing procedure will seek to answer the questions put forward by Ferrell, Fraedrich, & Ferrell (2008, p. 181) about the evaluation of ethical culture. This can be done through face-to-face interviews with the employees of the non-profit organizations that the consultant represent.
The employees can fill-in questionnaires with the need to indicate their name being optional. Our organization can also use codes so that in case of a need to verify data collected, they can re-visit the respondents.
The design of some of the questions should be indirect to avoid personal rivalry being used to taint the management or senior staff members.
The interviews and questionnaires will try to find out if the managers themselves follow the ethical codes of drafted by the consultant. They will check the number of employees that have used the anonymous reporting of misconduct option.
Less reporting may indicate that the organization has successfully integrated an ethical culture or the employees do not trust the systems of reporting. Employees can avoid reporting misconduct because they fear retaliation from their workplace colleagues and supervisors (Ferrell, Fraedrich, & Ferrell, 2008).
The audit will look into the corrective actions that were used by the management team. This should be different from the legal actions that are used to enforce ethical conduct unless the misconduct reaches a certain level of seriousness such as sexual harassment.
When trying to make it an ethics culture, there is a need to prepare individual minds to accept ethical codes beyond the mandatory ones enforced by law.
The auditing procedure will check that unethical behavior is publicly disapproved. The existence of rewards for exemplary ethical decisions will indicate the progressive integration of an ethical culture. A firm with an ethical culture is more concerned about the long-term benefits of their programs than the immediate benefits.
There should be openness and freedom of expression when discussing ethical dilemmas. The superior staff members should freely allow subordinates to express their views (Ferrell, Fraedrich & Ferrell, 2008).
The organizations should be “more externally focused on customers, the environment, and the welfare of the society” (Ferrell, Fraedrich, & Ferrell, 2008 p. 181). According to Ferrell, Fraedrich, & Ferrell (2008), audited organizations can be put into four ranks.
The components used are their care for people and for performance. Caring for people is the highest rank for nonprofit organizations. An integrative culture shows concern for both performance and people. An apathetic culture would require the management team to review its policies.
Training
Ferrell, Fraedrich, & Ferrell (2008) discuss that personal ethical behavior has no guarantee that a staff member will maintain ethical codes and standards. There is need to train members on codes of ethics that are enforced by law, and those that belong to specific organizations.
The training will extend to teaching the workers to use their moral philosophy in cases where there are no written guidelines. Ferrell, Fraedrich, & Ferrell (2008) discuss that “caring culture exhibits high concern for people but minimal concern for performance issues” (p. 178). Nonprofit organizations may choose members of staff to be trained as an ethics committee.
The training programs can work through training ethical committees. The committee will afterwards develop an ethical culture in their organization. Another option is that organizations under consideration should set a standard code that requires members of staff to attend our classes at least once every three months.
Our consultant will organize continous training programs throughout the year. Some of the programs will be conducted at individual organizations’ premises. Others will require organizations to send some of their workers. This is to ensure that services to the public do not stop because of training.
Section to review ethical training programs and standards
The section will constitute of the head of consultant, and two members who are in the global ethical culture section. They will propose the inclusion of new codes of ethics, design of training programs, and new ethical standards emerging around the world that may be considered for integration.
The first code of ethics will be the need to spend the funds provided in the areas in which the funds were asked for, and respect of donor objectives. There should be a limit to the level of expenditure that goes to areas that are not core to serving the public.
For example, if the funds are to distribute food, the amount spent on employees, stores and offices should have a limited percentage. This will ensure that funds serve the intended purpose by a big margin. When funds decrease, it will necessary to lay off some workers because of reduced workload.
Close some of the stores and offices. The remaining space should be necessary to maintain the same percentage in allocation of funds in target areas. They may also consider the extent to which organizations utilize volunteers.
Conclusion
The design of training programs will be updated according to effectiveness of the program for a period of six months. Training will incorporate the advisory section to explain some of the implications of unethical behavior in a court of law.
The legal advisory section will work closely with management teams of the organization served by the consultant. On the other hand, the training team will try to shape attitudes and awareness. The consultant can accept volunteers to work in certain sections to increase performance of the consultant.
References
Conflict of Interest. (2013). New York, USA: National Council of Nonprofits. Web.
Document Retention Policies. (2013). National Council of Nonprofits. Web.
Ferrell, C. O., Fraedrich, J. & Ferrell, L. (2008). Business Ethics: Ethical Decision Making and Cases. Boston, USA.: Houghton Mifflin Company.
Ethics in Fundraising. (2003). New York, USA: National Council of Nonprofits. Web.
Ostrower, F., & Bobowick, J. M. (2006). Nonprofit Governance and the Sarbanes-Oxley Act. Washington D.C., USA: The Urban Institute. Web.
Transparency and Accountability. (2013). Minnesota, USA: Minnesota Council of Nonprofits. Web.