Satisfied New Year to all the executive directors of all the non-profit organizations throughout our country! Actually, it's not just a new year, but it's a Brand new Decade. Endeavor to make the most of it. I am increasingly of the opinion which 'ethics' is the key issue that will set your organization apart from all the relax.
Sadly, we are not having to look far to find examples - really, case studies in-of-themselves - of serious ethical breaches all around us. Would you follow them? More importantly, do you analyze them and seek to use them to your organization? Have you led a fact-based (i. e., real example) discussion with your board of directors on an ethical problem that could be related to your own organization for the purpose of being instructional, defining command, and differentiating your organization from your peers? Is this something you could fatigue the New Year? If you did, do you agree it would serve your business well in the New Decade?
Let's face it, as an executive overseer, you are in the most challenging situation that you have likely ever experienced. When you are definitely not alone, the fact that there are so many nonprofit organizations - of very diverse mission and purpose - actually minimizes your chance to develop a meaningful support network. The nonprofits in your community, while conveniently situated around you, are your fierce competitors for precious (and dwindling) contribution funding. Finding non-profits of like kind across the broader geographic area takes time and still locks you into a competing situation. But , connecting yourself with a diverse non-profit executive representative network need not be such a challenge - use the power of the particular technology available to you - use the web and its powerful networking opportunities.
We, The Center for Ethics, Governance, and Accountability (CEGA), has however one focus: to provide a safe-haven opportunity for dialogue and reflection amongst nonprofits using ethics (and governance and accountability) as the base for strengthening your skills and the reputation of your organization. We have none other priority. No seminars, no library of broad-based information, absolutely no national meetings, no field trips - just a full concentrate on the most challenging issue of our time: ethics.
What examples of honest breaches have you noted in the first three weeks of this Beginning of the year?
What is the modern day equivalent of "sacred honor? " Virginia simply inaugurated its new governor who quoted our Declaration associated with Independence: namely, that we pledge "our sacred honor" - exactly what does that mean today? Let's avoid the national (and especially the political) examples that everyone is likely to have already seen or heard; rather, let's take a look at some real examples - on a smaller, individual, local scale - that all executive directors can incorporate to their thinking. The Harvard Business School has long utilized actually calls a 'case study' approach to teaching. CEGA is devoted to case studies because they are real, highly instructive, and promote conversation and thought.
In this article, three different examples are offered for your concern. One involves a nonprofit, another is a department of a little local government, and the last is a membership association - but almost all can be instructional if you apply the situation to your own.
1 . A service provider signs an agreement that contains recitals (promises) that are consideration (an inducement to enter a legal contract) but then decides, without explanation, not to recognize those promises - and tells you "to sue him" : which is always your right, but is not your desire. Your business, which is typically the 'little guy' in such a disagreement, probably cannot afford in order to sue - you don't have the time or the money - so what would you do? Are you in a legal dispute? Sure. But , I would claim the foundational element is ultimately an ethical one. How can you get somebody to behave ethically and honor their term if they have chosen not to do so?
2 . A local government entices an effective non-profit organization to relocate across jurisdictional boundaries with the guarantee that substantial local funding will be provided annually. The professional director works hard on the deal and the board carefully considers typically the move and approves it. Barely two years later, in what is actually termed a regretful cost-reduction decision due to the severity of the financial times, the local government eliminates its funding support of the nonprofit. The executive director and the board struggles with the situation and it is ultimately forced to make the hard decision to close its doors. However it gets worse. The economic development folks of the same county approach another non-profit about partnering to offer the same services since it had promised to the previous organization. Wow! How do you even begin to understand the issues entangled with this example? Does it make a difference that the nonprofit that was driven out is a nationally award winning performer - or even - that the 'new' non-profit partner has no experience at all? Once again, I would argue that the foundational element is an ethical one.
three. An association 'goes to bid' on some required professional solutions. The 'bid' is received from a client and friend from the president of the association. When compared to the existing service provider, there is a substantial financial savings, which on the surface sounds like a good thing. Under closer scrutiny, especially because the professional services are regulated by state government, it turns out that the enhanced are the result of a reduced scope of services by the new supplier. Worse, the association collects on a claim with the existing supplier even after it knows it will not be continuing its contract. The actual members of the association are not fully informed of the details; they may be told there is a new service provider who is offering more service smaller money. Everybody seems happy, right? Wrong! The now-previous service agency has been used and dumped. The savvy association members have got asked questions but they cannot get answers. The silent vast majority does not even know to ask questions. In the end, the association president has been doing business with a buddy, contracted for inferior services, and remaining the membership at a disadvantage. Yet another ethical dilemma has took place in a routine, day-to-day, organizational decision-making process.
As executive company directors, you have no doubt read about such examples - in fact , you may have actually had the misfortune of being involved in such a mishap. There is a typical theme that I find very disturbing as we analyze these situation studies: the decision maker would argue vigorously that he or she was performing it right thing! Unbelievable. But , unfortunately, very true. And, from the experience, I believe that those committing these unethical acts get deluded themselves into believing that they are correct. Do you see the criticality of focusing on the issue of ethics as we move forward?
In order to create successful strategies for saving or growing your nonprofit organization, I recommend that you should be totally invested in the inward and outward demo of ethics. Only you can highlight the importance of ethics among your own staff, board, customers, and contributors. Not only is it the right thing to do rapid and not only is it among the key problems facing our country these days - but , a commitment and dedication to ethics can give you a good honorable and well-deserved competitive advantage among your peers.
Delighted New Decade!
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