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Doing the right thing external version

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An introduction to ethical fundraising for water, sanitation and hygiene (WASH) organisations, based on the development and use of ethical fundraising guidelines and criteria by IRC.

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Doing the right thing external version

  1. 1. Supporting water sanitation and hygiene services for life Cor Dietvorst, 17 May 2016 Updated 15 June 2016. Doing the right thing – ethics at work “So What for Lunch?” presentation
  2. 2. Outline 1. What are ethics? 2. Ethics at IRC 3. Ethical fundraising review 4. Ethical risks 5. Feedback
  3. 3. Spinoza
  4. 4. What are ethics - 1? “Systematizing, defending, and recommending concepts of right and wrong conduct” (Wikipedia) Professional / business ethics: conduct of individuals and entire organizations.
  5. 5. What are ethics -2 More than compliance & transparency Compliance – laws & regulations – penalties – loop-holes, calculated risks Transparency – (voluntary) standards – reputation damage – self-reporting, value neutral Professional/business ethics – value-based, non- economic, moral principles Example: Until 2004 bribes tax deductible for NL companies working abroad
  6. 6. What are ethics - 3 Ethical/accountability codes Development • INGO Accountability Charter • Core Humanitarian Standard Business • UN Global Compact Research • Ethics in community-based participatory research • Ethical Research Involving Children (ERIC) • Research Ethics Guidebook Water • Water Ethics Charter • CEO Water Mandate • WaterAid Global Ethical Standards & Policy Finance • Ethical Fundraising • Triodos Minimum Standards and Exclusions
  7. 7. What are ethics – 4 Ethical investment “forbidden sectors” Fossil fuels Nuclear Conflict minerals Genetic engineering Factory farming Toxics Pork Financial services Media / Leisure Weapons Gambling Alcohol* Porn Tobacco
  8. 8. What are ethics – 5 Triodos Bank – ethical standards & exclusionsExcluding investments with potential negative impact on people or planet Categories • Nature & environment • Human rights • Governance# • Other controversial sectors (weapons, gambling, alcohol*,pornography, tobacco) # High rcorruption isk industries - Construction Materials, Building Products, Electric Utilities, Multi Utilities, Independent Power Producers & Energy Traders *without responsible drinking policy
  9. 9. Ethics at IRC - 1 : existing instruments • Values and principles (IRC Manifesto) • Code of Conduct (HR Manual) • External Complaints Policy • (Draft) Anti-Corruption Policy • Ethical Fundrasing Guidelines
  10. 10. Ethics at IRC - 2 : Ethical Fundraising Policy, guidelines, criteria Criteria 1. High risk sectors*: Human rights, Water pollution/ overexploitation, Corruption/ tax evasion 2. Blacklisted for 1 3. Do other WASH organisations accept money 4. Convictions/out-of-court settlements past 5 years for 1 5. Public campaigns for 1 in past 5 years 6. Negative reporting for 1 in past 5 years *“Forbidden sectors” – Arms trade, Nuclear energy, Water pollution/overexploitation, Land grabbing, Third World marketing – dropped after review
  11. 11. Ethical fundraising review 19 reviews Go Ahead*: Arcelor-Mittal, H&M, Helmsley Charitable Trust, MasterCard Foundation, Oak Foundation, Siemens, Swarovski, Voss Foundation, Waterloo Go Ahead (disputed):2 donors Caution**: 5 donors No go: 3 donors *Meet criteria, verifiable mitigation measures in place to reduce risks ** Partially meet criteria, mitigation measures unproven
  12. 12. Ethical risks for IRC • Increasing dependence on restricted funding & market- based services (consulting, project management) – pressure on independent think-tank role • Supply-side (donor or lead contractor) rather than demand-side (national institutions) accountability • Flexible/poorer labour conditions: country staff, consultants, associates, interns (students, graduates) • Corporate vs evidence-based communication: outcome “pimping”
  13. 13. Questions and feedback Question: Why does Triodos Bank consider alcohol “unethical” [Slide 7/8)]? Answer: this is only the case for brewers without “ responsible drinking” policies. Question: All multinationals evade taxes, so does this imply we can never accept funds for them [Slide 10]?. Answer: Ethically speaking, “everybody does it” is not a valid argument. IRC ‘s public finance campaign lacks credibility if we accept funding from companies that don’t pay their fair share of taxes. Acceptance of tax avoidance is quickly diminishing – see the recent London Anti-Corruption Conference. Feedback: Couldn’t FBDU focus more on targeting ethically cleared funders, saying “IRC recognises you as an ethical funder” to increase our chances? Can we collaborate with the Water Integrity Network (WIN) to promote ethical fundraising? EXAMPLE PRESENTATION TITLE

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