Grobham's book discusses different approaches to ethics including teleological, deontological, utilitarian, and virtue approaches. It also covers key topics relating to ethics in nonprofit organizations such as fundraising, governance, financial management, grants management, and personnel management. The book analyzes an unethical incident at Save the Children where donors were paying for children's sponsorships years after the children had died. It also discusses the proper use of employer resources and disposal of unneeded property as well as the importance of personnel management, work-life balance, and addressing ethical issues. A major takeaway is that ethical dilemmas should be addressed to prevent serious issues and organizations need codes of conduct for employees to follow.

1. Dawana Holmes
Dr. Folger
AOD 9231: Proseminar- Spring 2016
February 7, 2016
Ethics in Organizations
Ethics in Nonprofit Organizations: Theory and Practice
Written by: Gary M. Grobham
Merriam-Webster.com defines ethics as “a branch of philosophy dealing with what is
morally right or wrong.” However,there is a gray area of what defines behavior as “good/right”
and “bad/wrong.” The way in which individuals should behave according to society has been
questioned since the beginning of time. One ethical standard that society abides by is called the
Golden Rule. The Golden Rule states that you should “treat others the way you would want to be
treated.” As a recruiter,one question that I ask candidates during phone interviews is, “How do
you interact with patients and families to ensure that they have a positive experience?” Many
candidates answer this question saying, “I treat others the way I want to be treated.” Utilizing The
Golden Rule is valid in in terms of patient service; however it raises many questions regarding
ethics in the workplace.
In his book, Ethics in Nonprofit Organizations:Theory and Practice, Gary Grobham
discussed the generalapproaches found in literature pertaining to ethics. The approaches
discussed were the Teleological approach (the ends justify the means), Deontological approach
(God said so), Utilitarian approach (measure and calculate the relative benefits to all members of
a group of each act/behavior and choose the act or behavior that creates the greatest good for the
aggregate),and Virtue approach (the personal character of the decision-maker, suggesting that
there is a distinct character trait,“benevolence”). Along with these approaches, Ethics in
Nonprofit Organizations discussed various topics relating to ethics in nonprofit organizations.
The important highlights that Grobham discussed were ethics in fundraising, ethics in
governance, ethics in financial management, ethics in grants management, and ethics in personnel
management. To conclude his research,Grobham included case studies to provide readers with

2. examples of ways to apply the theories. There were many key points relevant to present and
future AOD practitioners. Those key points would include ethics in fundraising, financial
management and personnel management.
Nonprofit organizations are entrusted with the care of people. These people are usually
vulnerable individuals in need of special services. When nonprofit organizations offer to help
underprivileged individuals they usually do it out of the kindness of their hearts. For that reason,
nonprofit organizations are held to a higher ethical standard than for-profit organizations.
Grobham’s book discussed the unethical financial management incident that occurred at the Save
the Children Federation. The Chicago Tribune disclosed irregularities within the organization’s
child sponsorship program, which donors who contributed to support individual’s children were
not informed that their sponsored children had died. In some cases,the donors were paying five
years after the child had passed away. This incident was unethical because the organization did
not communicate honest, accurate and up-to-date information.
In Grobham’s book, two insights included the proper use of employer resources and the
proper disposal of unneeded employer property. When employees use their organizations
resources for personal use such as using the copy machine, phones, and supplies for personal use
they are behaving in an unethical manner. Another insight that I gathered from this reading was
the appropriate protocol of removing donated goods. According to Grobham, the staff members
are not entitled to take leftover donations. If they do it’s considered unethical. It’s important for
employers to train their employees on the ethical behaviors of using the company’s resources.
Many managers ignore these issues to avoid conflict within the workplace. Resources run thin
during tough economic times when managers condone such behavior. It’s best to train employees
and address unethical issues immediately instead of letting them build.
Personnel management was also discussed by Grobham’s. The staff is an organization’s
most valuable asset,each employee serving as an investment made by a company. The climate of
an organization can change after someone is hired and any bad apples can potentially hurt the

3. organization, which is why it is vital to complete background checks and interviews. As a
recruiter, I understand the importance of filling positions with the right candidates. Some hiring
managers attempt to speed up the hiring process, but effective recruitment helps to prevent
turnover.
Another perception that is affiliated with ethical issues concerning personnel
management is promoting a work/life balance. Employees should be able to afford time to take
vacations, deal with personal and family health-related issues, and spend time with their families.
Employees engage in unethical behavior when they feel that their employers do not care about
their well-being. In some cases,the employees begin stealing merchandise, completing
unauthorized transactions, and stealing company time. Much of their actions were based on what
was best for their families. Employers need to recognize the importance of keeping their
employees a top priority, as employees give companies the ability to realize their mission and
vision.
Ethics in Nonprofit Organizations provided a great introduction to understanding ethics
in the nonprofit sector. A major takeaway was that ethical dilemmas are challenging and have the
potential to become serious issues if they are not addressed. It’s imperative to have a code of
conduct or an ethical standard for employees to model because they represent the organization.