One would expect a nonprofit organization to maintain higher ethical standards than any of the for-profit business organizations. However, the unfortunate fact is that ethical standards of nonprofit organizations in general are on the decline, and not much better than those of the for-profit enterprises. A recent report by the Ethics Resource Center says that the decline in ethical standards of the employees at non-profits is at its lowest level in the last 10 years.
Here are a few key suggestions to help you keep your nonprofit ethical in all its conduct and dealings as far as possible:
Lead by example
The values and ethics in any organization pass down from the top. As the head
of the nonprofit, if you are able to maintain a highly ethical and transparent
image, it will have a positive influence on the entire organization. It is important
to practice your values in critical situations and never compromise or give
in under a pressure situation. That sets a sterling example for the rest of
the organization to emulate.
Communicate your values adequately
Make sure that your passion and zeal for maintaining the highest moral and ethical
standards is communicated to your employees at every level. This requires a
constant reminder because people tend to forget as time goes by. Address your
employees, give them motivational talks, and make sure that they completely
identify themselves with the larger objectives and principles of your nonprofit
organizations.
Hire new employees judiciously
Make every effort to ensure that the new employees you are hiring for your nonprofit
contribute to the ethical environment, and not become a burden on it. Conduct
a thorough background check, verify their claims, and seek references from new
prospective recruits for your nonprofit. This will ensure that any scope for
ethical compromises is filtered out at the origin point itself.
Educate your employees about the consequences
Many times the employees are unaware of the legal implications of their actions.
The correct preventative approach would be to make them aware of the possible
risks and legal wrangling that can ensue if the organization or a particular
employee indulges in unethical conduct. The dividing line between ethics and
legality can be very thin at times, and the employees must be fully aware of
this reality.
Keep your nonprofit’s finances totally above-board
The highest standard of ethics can be maintained if you keep your finances and
book-keeping completely transparent. If the organization has nothing to hide,
it will reflect positively on the employees. They will gel with the transparent
and ethical culture of the organization. Financial dealings and financial statements
can be the litmus test of your nonprofit’s ethical conduct. Therefore,
ensure that your nonprofit passes this test with flying colors every financial
year.
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