This document discusses ethics at IRC. It defines ethics and outlines IRC's existing ethical instruments like its values, code of conduct, and ethical fundraising guidelines. These guidelines have criteria for evaluating potential donors, like excluding those in high-risk sectors involving human rights abuses or corruption. An ethical fundraising review examined 19 potential donors and determined some were acceptable with mitigation measures while others required caution or were not acceptable. The document also discusses potential ethical risks to IRC like dependency on restricted funding and supply-side accountability. It concludes by answering questions about IRC's ethical standards.

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. Outline
1. What are ethics?
2. Ethics at IRC
3. Ethical fundraising review
4. Ethical risks
5. Feedback

3. Spinoza

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. 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. 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. 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. 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. 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. 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. 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. 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. 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?
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