9/11/2016

ETHICAL ISSUES ARISING

FROM DIACONIC
MANAGEMENT

Introduction
Non-profit organizations (NPOs) enjoy more
trust than most other modern institutions. That
trust comes at a price, however. When
allegations of unethical behaviour arise,
public indignation is swift and can translate into
decreased donations for several years. NPOs
typically serve vulnerable populations and,
consequently, individuals working in them are
expected to put organizational and public
interests above their own.

Gibelman, M., & Gelman, S. R. Very public scandals: An analysis of how and why non-governmental
organizations get in trouble. In Voluntas: International Journal of Voluntary and Nonprofit Organizations, Vol. 12,
No. 1, 2001.

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Organizational ethics are the

responsibility of organizational
leadership!!!

8 Major Characteristics of Good Governance

1. Rule of Law
Good governance requires fair legal frameworks
that are enforced by an impartial regulatory
body, for the full protection of stakeholders.
2. Transparency
Transparency means that information should be
provided in easily understandable forms and
media; that it should be freely available and
directly accessible to those who will be affected
by governance policies and practices, as well as
the outcomes resulting therefrom; and that any
decisions taken and their enforcement are in
compliance with established rules and
regulations.

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3. Responsiveness
Good governance requires that organizations
and their processes are designed to serve the
best interests of stakeholders within a
reasonable timeframe.

4. Consensus Oriented
Good governance requires consultation to
understand the different interests of
stakeholders in order to reach a broad
consensus of what is in the best interest of the
entire stakeholder group and how this can be
achieved in a sustainable and prudent manner.

5. Equity and Inclusiveness

The organization that provides the opportunity
for its stakeholders to maintain, enhance, or
generally improve their well-being provides the
most compelling message regarding its reason
for existence and value to society.

6. Effectiveness and Efficiency

Good governance means that the processes
implemented by the organization to produce
favorable results meet the needs of its
stakeholders, while making the best use of
resources human, technological, financial,
natural and environmental at its disposal.

7. Accountability
Accountability is a key tenet of good governance. Who is
accountable for what should be documented in policy
statements. In general, an organization is accountable to
those who will be affected by its decisions or actions as
well as the applicable rules of law.

8. Participation
Participation by both men and women, either directly or
through legitimate representatives, is a key cornerstone
of good governance. Participation needs to be informed
and organized, including freedom of expression and
assiduous concern for the best interests of the
organization and society in general.

Source: UNDP Report, Governance for Sustainable Human Development, 1997.

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The Role of Leaders

Develop ethical behavioral
influences.
Provide sound ethics training
Instill strong organizational values
Implement plans and strategies to
achieve ethical excellence
Build an integrity based organization

Comparing Unethical Versus Ethical Leadership

The Unethical Leader
Is arrogant and self-serving
Excessively promotes self-
interest
Practices deception
Breaches agreements
Deals unfairly
Shifts blame to others
Diminishes others dignity
humiliates staff/client
Neglects follower
development
Withholds help and support
Lacks courage to confront
unjust acts
The Ethical Leader
Possesses humility
Maintains concern for the
greater good
Is honest and straightforward
Fulfills commitments
Strives for fairness
Takes responsibility
Shows respect for each
individual
Encourages and develops
others
Serves others
Shows courage to stand up for
what is right

Classification of Ethical
Issues...
conflict of interest

honesty and fairness

communications

organizational relationships

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Conflict of Interest...
exists when an individual must choose
whether to advance his/her own interests,
the organizations, or others
examples include bribes or personal
payments, gifts, or special favors intended
to influence decision making

Honesty & Fairness...

Honesty refers to truthfulness or
trustworthiness. To be honest is to tell
the truth to the best of your knowledge
without hiding anything
Dishonesty can be broadly defined as a
lack of integrity, incomplete disclosure,
and an unwillingness to tell the truth.
Dishonesty, lying and concealment can
cause harm to stakeholders.

Communications...

refers to the transmission of

information and the sharing of
meaning.
communications that are false,
misleading, or deceptive are both
illegal and unethical.

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Organizational Relationships...
behavior of organizational members
toward stakeholders
includes confidentiality, meeting
obligations & deadlines, not pressuring
others to behave unethically
Example of unethical conducts: Spreading
rumors to damage others; sexual
harassment; bullying and discrimination

Why Misconduct Is Not Reported...

fear of not being considered a team
player
did not think corrective action would
be taken
fear of retribution (from management)
no one else cares, why should I
did not trust the organization to keep
report confidential
1997 Society for Human Resource Management/
Ethics Resource Center, Business Ethics Survey.

Resolving Ethical Issues

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Case 3

You and several co-workers attend a conference.

They have made similar trips for the organization, but
this your first. You keep your expenses very low by using
the hotel airport shuttle ($12 round trip), economizing
on meals and avoiding any unnecessary expenses. Part
of your job involves comparing receipts with expense
reports, and when you review your co-workers' receipts
you see that they each used a taxi to and from the
airport (around $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?

Case 4
You are in charge of a church's mission efforts in a
developing nation. Your church has assembled a
large and expensive shipment of medical supplies
for a Christian medical clinic in this developing
country. You know that hundred thousand people
will be help by the supplies. But the shipment is
stuck on the dock because of bureaucratic red tape.
You can give speed money (or facilitation
payments speeding up official administrative
processes). Otherwise you may not even get them,
or at the earliest get them within 6 months. What
would you do?

Ethical Decision-Making
How does a resolution conduce to or
detract from our Mission? Does it promote
or dilute from basic organizational values ?
How does the decision impact the long -
term relationships with staff, donors ,
volunteers and community members ?
How does it improve or injure personal
/NPO's integrity?

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References
Deborah L. Rhode & Amanda K. Packel, Ethics and Nonprofits
in Stanford Social Innovation Review (2009 Summer)
Jeavons, Thomas H. "Ethical Nonprofit Management." In The
Jossey-Bass handbook of nonprofit leadership and
management, edited by David O. Renz and Robert D. Herman.
San Francisco: Jossey-Bass, 2010.
Gibelman, M., & Gelman, S. R. Very public scandals: An
analysis of how and why non-governmental organizations get
in trouble. In Voluntas: International Journal of Voluntary and
Nonprofit Organizations, Vol. 12, No. 1, 2001.
Developing an Effective Ethics Program chap 8 in Ferell, O. C.,
Fraedrick, J., & Ferell, L. (2011). Business Ethics: Ethical
Decision Making and Cases. Mason: South Western - Cengage
Learning.