ISSUES IN NONPROFIT ETHICS

Issues in Nonprofit Ethics

Issues in Nonprofit Ethics

Introduction

Ethics exists in a multitude of formats from the philosophical and abstract to the realm of applied contexts defined by statutes and codes. All forms vary in their situational importance and some present as contradictory to each other. Scholars and students often find that ethical studies within a particular field follow a similar developmental pattern of moving from concrete, or black and white, to a more fluid shades-of-gray model. Narrowing the focus to applied, organizational-level ethics in the nonprofit sector we find an emerging body of knowledge that is moving along this developmental continuum (Abraham, 2006, 88).

To advance the reader's understanding of this important subject, this chapter discusses a variety of concepts to provide a foundational understanding of ethics assessment relevant to nonprofit organizations. Discussions about the characteristics of the nonprofit sector, organizational culture, and the value of organizational-level assessment combined with the identification of salient constructs for assessing nonprofit ethics, the introduction of an empirically supported tool for assessing ethics in nonprofit organizations, and proposed future directions for this emerging field serve to accomplish this task.

The Importance of Ethics to Nonprofit Organizations

Ethics plays an integral role in the viability of nonprofit organizations for multiple reasons. Nonprofit organizations serve as stewards of public monies and as a result they receive tax exemption privileges. This benefit comes in exchange for the work and services they provide to the societal common good. Nonprofit organizations historically have filled the gap between (a) the goods and services provided by business and government and (b) the remaining unmet needs of communities. This typically includes the specialized needs of marginalized populations. Since the work of nonprofits receives public scrutiny and often depends on the generosity of donors to continue providing services, nonprofits have a vested interest in maintaining ethical organizations. Even the hint or perception of unethical behaviour can destroy a nonprofit entity as donors and community members will typically not support a nonprofit organization labelled as unethical (Zimbardo, 2007, 85).

Engaging in regular organizational-level assessment serves as one method for gathering the data nonprofit leaders need to assess the current level of ethical health in their organizations. Working from a data-based vantage point maximizes the opportunity to reinforce a culture supportive of positive ethical behaviour. This informed perspective decreases the risk of having an ethical lapse. Thus, a proactive approach to organizational ethics through periodic ethics assessment provides nonprofit leaders with the needed data to inform them about the ethical culture that exists in their organization, so they can best serve their missions and constituents.

Distinctions Between the Nonprofit, Business, and Government Sectors

Aplethora of contemporary book titles address the issue of organizational ethics. The wealth of publications, or even a simple Google search, indicates that the assessment of ethics at the organizational level represents a topic of interest to the leaders of all types of organizations—for-profit, nonprofit, and government agencies alike. However, important distinctions exist between the three economic sectors in one arena largely related to the acquisition ...