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Building and sustaining ethical nonprofits toolkit (handout 1 of 1)
 

Building and sustaining ethical nonprofits toolkit (handout 1 of 1)

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Tom Sechrest, Ph.D., Program Director, Master of Science in Organizational Leadership and Ethics and Associate Dean, School of Management and Business, St. Edward's University and Ann Hume Wilson, ...

Tom Sechrest, Ph.D., Program Director, Master of Science in Organizational Leadership and Ethics and Associate Dean, School of Management and Business, St. Edward's University and Ann Hume Wilson, Executive Director, Conspirare

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    Building and sustaining ethical nonprofits toolkit (handout 1 of 1) Building and sustaining ethical nonprofits toolkit (handout 1 of 1) Document Transcript

    • ETHICAL DECISION MAKING MODELS Ruggiero, "A Strategy for Analyzing Ethical Issues"Ruggiero, Vincent R. Thinking Critically About Ethical Issues.7th edition.THE PROCEDURE 1. Study the details of the case carefully. a. Look for circumstances that set this case apart from otherwise similar cases. b. Identify the key questions. c. Answer these key questions or speculate about possible answers. 2. Identify specific criteria that are relevant to the case. a. Are there any obligations? b. What ideals are involved? c. What are the consequences of the case? d. Considering the answers to these questions, where should the emphasis lie? 3. Determine all possible choices of action that are available, or were available. 4. Decide which action is most ethical. This method is most useful when the DECISION-MAKER ... o has plenty of time for investigation and analysis [step 3] o is skilled in case-based, precedent-based or example- based reasoning [step 1a] is skilled in causal or consequential reasoning [step 2c] This method is most useful in a SITUATION ... that will change little over time This method is most useful when STAKEHOLDERS ... share values [step 2b] Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 1
    • Nash, "Twelve Questions for Ethical Decision-makers"Nash, Laura L. "Ethics Without Sermons." Howard Business Review59 (1981): 79-90.THE PROCEDURE 1. Have you defined the problem accurately? 2. How would you define the problem if you stood on the other side of the fence? 3. How did this situation occur in the first place? 4. To whom and what do you give your loyalties as a person and as a member of the corporation? 5. What is your intention in making this decision? 6. How does this intention compare with the likely results? 7. Whom could your decision or action injure? 8. Can you engage the affected parties in a discussion of the problem before you make your decision? 9. Are you confident that your position will be as valid over a long period of time as it seems now? 10. Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole? 11. What is the symbolic potential of your action if understood? If misunderstood? 12. Under what circumstances would you allow exceptions to your stand? This method is most useful when the DECISION-MAKER ... o has easy access to stakeholders [step 8] o has keen insight into human motivation [step 5] o has plenty of time for investigation and analysis o is skilled in causal or consequential reasoning [steps 6 and 7] This method is most useful in a SITUATION ... o where the decision-maker is also a stakeholder [step 11] This method is most useful when STAKEHOLDERS ... o share values [step 4] Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 2
    • Kidder, "Nine Checkpoints for Ethical Decision-making"Kidder, Rushworth M. How Good People Make Tough Choices.New York: William Morrow, 1995.THE PROCEDURE 1. Recognize that there is a moral issue. 2. Whose issue is it? a. Is anyone responsible? b. Is anyone morally obligated to do anything? 3. Gather the relevant facts. a. What events have unfolded? b. What finally happened? c. What else might have happened? d. Who said what to whom? e. Who may have suppressed information? f. Who was culpably ignorant? g. Who was innocently unaware? h. What is the future potential? 4. Test for right-versus-wrong issues. a. Were any laws broken? b. If the answer is obviously "yes," treat the issue as a legal instead of a moral issue. c. If the answer is less obviously "yes," treat it as a moral issue.  The stench test: Does this course of action have about it an indefinable odor of corruption that makes you (and perhaps others) recoil and look askance?  The front-page test: Would you feel uncomfortable if what you are about to do showed up tomorrow morning on the front pages of the nations newspapers?  The Mom test: If I were my mother, would I do this? d. If the answer to these questions is yes-yes-no, discontinue further analysis; the issue is simply a choice between right and wrong. 5. Test for right-versus-right paradigms. What sort of dilemma is this? a. Is it a case of truth versus loyalty? Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 3
    • (KIDDER’S NINE CHECKPOINTS CONTINUED) b. Is it a case of self versus community? c. Is it a case of short-term versus long-term? d. Is it a case of justice versus mercy?6. Apply the resolution principles. a. Ends-based thinking: Do whats best for the greatest number of people. b. Rule-based thinking: Follow your highest sense of principle. c. Care-based thinking: Do what you want others to do to you.7. Investigate the "trilemma" options. a. Is there a third way through this dilemma? b. Try to find a creative middle ground.8. Make the decision.9. Revisit and reflect on the decision. This method is most useful when the DECISION-MAKER ... o can tolerate ambiguity, complexity or conflict [step 5] o has a working knowledge of several ethical theories [step 6] o has high initial sensitivity to relevant ethical "features" [step 1] o has plenty of time for investigation and analysis o is skilled in causal or consequential reasoning [steps 3c and 6a] o is skilled in conflict- or dilemma-resolution methods [steps 6 and 7] o is skilled in the application of general ethical principles to specific cases [step 6] This method is most useful in a SITUATION ... o that will change little over time o where the decision-maker is also a stakeholder [step 4c] This method is most useful when STAKEHOLDERS ... o share ethical principles [step 6] o share laws and legal precedents [step 4]Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 4
    • ETHICAL SCENARIOS FOR ANALYSISSCENARIO A: Clothing the Camp CounselorsYou are a first-year counselor at a camp for needy children, which issubsidized through contributions from individuals and localbusinesses. Yours is the only camp experience that thesedisadvantaged kids will ever have. One afternoon, a few hours beforethe next batch of children is due to arrive, a truck stops by with adonated shipment of new shoes, shirts, and shorts for your campers.Immediately, the other counselors (all of whom have more experiencethan you do) begin going through the donated items and selectingones for personal use. They encourage you to do the same. Whenquestioned, they argue that there is plenty to go around for both kidsand counselors, and that “having the first option” is a “fringe benefit”for the underpaid camp staff. “We’ve always done it this way.”Would you take any shoes or clothing to wear? Why or why not?SCENARIO B: Campus Bookstore ProtestYou are the bookstore manager on a college campus. Although notrequired to make a profit, your store is supposed to at least breakeven, generating enough sales to match expenses. Next totextbooks, clothing items with the college name and logo bring in themost revenue. These items have a high profit margin and areparticularly popular among alumni who come to campus for games,Parents’ Day, graduation, and other public events. Recently, studentsaround the country have begun to protest the sale of licensed schoolclothing made by suppliers who manufacture their garments indeplorable conditions in Third World countries. The clothing line atyour college is manufactured by one of the firms accused of unfairlabor practices.It is two weeks before Homecoming (which attracts one of the largestcrowds of alumni). A representative from Student Government comesto your office to announce that, unless you stop selling your currentline of licensed apparel, protestors will picket the bookstore during Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 5
    • Homecoming festivities. In addition, if you don’t stop selling, studentswill petition other students to buy their textbooks online or from othersources. There is no way that you can replace your current clothingstock in time for Homecoming. Besides, you would lose tens ofthousands of dollars if you did so. Your supervisor is out of town, butis noted for his “get tough” attitude toward student protests. You,however, are bothered by the idea of selling products produced insweatshops and are sympathetic to student concerns.What would you do?SCENARIO C: The Board Makes a DecisionYou are an officer of a large national nonprofit with over fifty thousandmembers. The nonprofit has taken pride in standing up for itsprinciples over the 25 years it has been in existence. Recently,though, because of the economy, members have not been renewingat the same rate as in the past. This has caused quite a financialstrain on the organization. Recently, the Board of Directors of thenonprofit agreed to partner with a commercial product manufacturerfor the logo and name of the manufacturer to be used on conjunctionwith a promotional campaign for the commercial product. Thepartnership will yield significant funds to help maintain the nonprofit’swork. However, there are many members who feel that thispartnership sullies the name and reputation of the nonprofit. Further,they were not given any change at all to provide feedback to theBoard about the decision. Neither were you. The Board met in secretto make its decision and ordered you to sign the related documents toinitiate the campaign. You did so reluctantly, but felt the financial gainjustified the decision. Now large numbers of vocal members aremaking their dissatisfaction with the Board’s decision public, and arethreatening to resign from the nonprofit and to mount a publicitycampaign about the Board’s decision, hoping to force the resignationof the Board and the termination of the decision.As the officer who signed the documents, what should you do? Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 6
    • GENERAL RESOURCES ON ETHICS (not intended to be a complete listing) BooksKidder, Rushworth. (2009). How good people make tough choices: Resolving the dilemmas ofethical living. New York: Harper Perennial. ISBN: 0061743992Johnson, Craig. (2011). Meeting the Ethical Challenges of Leadership: Casting light orShadow. Thousand Oaks, CA: SAGE. ISBN: 1412982227Ciulla, Joanne. (2004). Ethics: The Heart of Leadership. Santa Barbara, CA: Praeger. ISBN:0275982521Solomon, Robert. (2003). The Joy of Philosophy: Thinking Thin verses the Passionate Life.Oxford: Oxford University Press. ISBN: 0195165403Woodruff, Paul. (2002). Reverence: Renewing a Forgotten Virtue. Oxford: Oxford UniversityPress. ISBN: 0195157958Marrella, Len. (2001). In Search of Ethics: Conversations with Men and Women of Character.Sanford, FL: DC Press. ISBN: 0970844409Morgan, Peter & Reynolds, Glenn. (1997). The Appearance of Impropriety: How the EthicsWars Have Undermined American Government, Business, and Society. New York: Free Press.ISBN: 0743242661Plante, Thomas G. (2004). Do the Right Thing: Living Ethically in an Unethical World.Oakland, CA: New Harbinger. ISBN 1572243643Rachels, James. (2002). The Elements of Moral Philosophy. New York: McGraw Hill. ISBN:007282574Marks, Joel. (2000). Moral Moments: Very Short Essays on Ethics. Lanham, MD: UniversityPress of America. ISBN: 0761818022Solomon, Robert & Murphy, Mark. (1999). What is Justice: Classic and ContemporaryReadings. Oxford: Oxford University Press. ISBN: 0195128109Ciulla, Joanne, Price, Terry & Murphy, Susan. (2006). The Quest for Moral Leaders: Essays onLeadership and Ethics. London: Edward Elgar. ISBN: 1845429451Kellerman, Barbara. (2004). Bad Leadership: What It Is, How It Happens, Why It Matters.Boston: Harvard Business School Press. ISBN: 1591391660 Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 7
    • Fluker, Walter E. (2009). Ethical Leadership: The Quest for Character, Civility, andCommunity. Minneapolis, MN: Fortress Press. ISBN: 0800663497Renz, David O. (Ed.). (2010). The Jossey-Bass Handbook of Nonprofit Leadership andManagement. San Francisco: Jossey-Bass. ISBN: 0470392509Price, Terry L. (2008). Leadership Ethics: An Introduction. Cambridge: CambridgeUniversity Press. ISBN: 0521699118Rhode, Deborah L. (Ed.) (2006). Moral Leadership: The Theory and Practice of Power,Judgment and Policy. San Francisco: Jossey-Bass. ISBN: 0787982822Svara, James. (2006). Ethics Primer for Public Administrators in Government and NonprofitOrganizations. Sudbury, MA: Jones & Bartlett. ISBN: 0763736260American Institute of CPAs. (2011). The Best of Boards: Sound Governance and Leadershipfor Nonprofit Organizations. AICPA ISBN: 0870519654Gardner, Howard (Ed.) (2007). Responsibility at Work: How Leading Professionals Act (orDont Act) Responsibly. San Francisco: Jossey-Bass ISBN: 0787994758Rest, James R. (Ed.) (1994). Moral Development: Advances in Research and Theory. NewYork: Praeger Publishers. ISBN: 0275922545Bazerman, M.H. & Tenbrunsel, A.E. (2011). Blind Spots: Why We Fail to Do What’s Right andWhat To Do About It. Princeton, N.J.: Princeton University Press.ISBN: 978-0-691-14750-5 Journal ArticleRhode, Deborah L. & Packel, Amanda K. (2009). Ethics and Nonprofits. Stanford SocialInnovation Review, Summer 2009. Can be retrieved athttp://www.ssireview.org/articles/entry/ethics_and_nonprofits Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 8
    • Websiteshttp://www.globalethics.org/Institute for Global Ethics, founded by Rushworth Kidderhttp://www.ethics.org/Ethics Resource Centerhttp://www.councilofnonprofits.org/resources/resources-topic/ethics-accountabilityNational Council of Nonprofitshttp://ethics.sandiego.edu/Ethics Update from the University of San Diego. General resources.http://managementhelp.org/businessethics/index.htmBusiness Ethics and Social Responsibility websitehttp://www.guidestar.org/rxa/news/articles/2004/how-ethical-is-your-nonprofit-organization.aspxGuidestar: How ethical is your nonprofit?http://www.independentsector.org/governance_ethics_resource_centerIndependent Sector Resource Center for Good Governance and Ethical Practicehttp://www.independentsector.org/compendium_of_standardsIndependent Sector Compendium of Standards, Codes, and Principles of Nonprofit andPhilanthropic Organizationhttp://www.thenonprofittimes.com/managementtips/category/ethicsThe Nonprofit Times Management Tips on Ethicshttp://www.npgoodpractice.org/category/guide-categories-and-concepts/nonprofit/legal-and-regulatory/ethicsJohnson Center at Grand Valley State University Nonprofit Good Practicehttp://www.afpnet.org/Ethics/EnforcementDetail.cfm?itemnumber=3262Association of Fundraising Professionals: The Accountable Nonprofithttp://onestarfoundation.org/wp-content/uploads/2012/06/NMAT_Code_of_Ethics_April_2012.pdfNonprofit Management Alliance of Texas Code of Ethicshttp://tano.org/ethics/Texas Association of Nonprofit Organizations Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 9
    • IDENTIFYING VALUESValues are fundamental beliefs that anchor our lives. They are the characteristics thatmatter to us the most, the “non-negotiables” that best describe who we are.Look over the following list and circle the words or phrases that best illustrate yourvalues. If you have values that are not on the list, add them. Try to circle no more thantwelve to fifteen descriptors.Accomplishment Fulfillment Physical vitalityAffirmation Fun PleasureAmbition Gentleness PolitenessAuthenticity Genuineness PrivacyBeauty Good Taste ProductivityBeing in control Goodness PurityBroadmindedness Growth QualityCaution Happiness RecognitionCareer Hard work ReconciliationCharacter Honesty RelaxationCheerfulness Honor ReliabilityCoaching Humility Respect for peopleCollaboration Humor Respect for the environmentComfort Imagination ResponsibilityCommunity Inner harmony Risk takingCompassion Independence SalvationCompetence Influence SecurityCompetition Innovation Self controlConsistency Inquisitiveness Self respectCreativity Integrity Self expressionCourage Intellectual SensitivityDependability Intimacy ServanthoodDetermination Joy ServiceDiligence Judgment Sexual intimacyDiversity Kindness SilenceDuty Learning Social RecognitionEfficiency Listening SolitudeElegance Logic SpiritEmpowerment Love Spiritual growthEncouragement Loyalty StabilityEnlightenment Marriage SuccessEquality Making money TemperanceExcellence Mentoring ToleranceFairness Obedience TranquilityFaithfulness Orderliness TrustFamily Patience TruthForgiveness Peace WinningForward-looking Perfection WisdomFreedom Performance WorshipFriendship PersistenceFrugality Personal power Texas Nonprofit Summit Building & Sustaining Toolkit September 2012 10