Ethics in the Nonprofit World: Aren't ethical individuals good enough?

Not long ago I was talking to the head of a local nonprofit agency and he said, "I'm very fortunate that I don't have to worry about any scandals or problems. All my employees and volunteers are ethical."

I was tempted to sit him down and give him my speech about the difference between individual ethics and organizational ethics but I resisted. If he thought he was immune from problems, perhaps others think the same thing. It's time to set the record straight.

One might think that if a person understands the basic concepts of right and wrong, organizations that employ them will be fine. Regrettably, that is not true. All social cultures have a distinct character that can exercise good or bad influences on individuals. Think about places you have worked or volunteered and assign to each of them an adjective. You will see what I mean. "Fastpaced and competitive" is not the same as "contemplative and complacent."

Similarly, individual values and organizational values may not be the same. Consider those with whom you either work or volunteer at local nonprofit agencies. Undoubtedly they are a diverse lot. Some may have grown up in the south while others may be from the northeast. Some may come from a large family while others were the only child. Some are church-going. Others are secular. Some may be motivated by quantifiable achievements and others by a sense of mission. Some are extroverts; some are introverts. Some may have worked many places; this may be another's first job.

Individuals are dependent upon organizations. Those with questionable integrity can be encouraged to act ethically by a management culture that supports such behavior, and ethical individuals can be neutralized or brought down by a culture that discourages or prevents ethical leadership.

For example, values such as "privacy," "accountability", "compassion" and "respect" may have varied meanings to people, depending on their life experiences.

John is a new development officer, anxious to meet his quantitative goals. He has lunch with a longtime friend who has just joined a large accounting firm. "Can you give me a list of the highest-paid partners at your firm," he asks, "so I can begin files on them as prospects for our annual giving?" John thought his supervisor would be pleased when he came back with the list. Instead, John was fired. "We only develop information from public sources or from what people are willing to share with us," he was told. "What you did was totally inappropriate."

At another nonprofit, Susan was given a new assignment of chairing the grants funding committee.

Her neighbor, Margaret, volunteers for her church food bank. "Susan, there's a family we serve who needs cash," she said. "Both parents recently lost their jobs in the home-building industry. Can you help them with $300?"

"Consider it done," Susan said. "Give them the money and I'll get you the cash next week." When her executive director found out that Susan had made a commitment and was bypassing policy and committee procedure, Susan was demoted. "Compassion shouldn't override accountability and standards," she was told.

Nonprofit organizations, perhaps more than others, need to be clear about their values and the standards of ethical behavior they expect. To put the burden on individuals to try to guess what the agency would like is unfair. While it is true that most people are motivated to do the right thing, their decisions might not be correct. We all need the support of clear ethical standards from the organizations to which we donate our money and time.

The Southwest Florida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry counties through endowed funds for more than 30 years. With assets of more than $57 million, the Community Foundation has provided more than $30 million in grants and scholarships to nonprofit organizations and individuals in the communities it serves. The Community Foundation has two affiliates, Bonita Springs Community Foundation and Good Neighbor Community Foundation of Sanibel- Captiva, to best serve those geographic areas.

For more information, please call 274-5900, or visit their web site at www.floridacommunity.com.