What makes a good nonprofit code of ethics

After Shell Point won the Uncommon Friends Business Ethics Award recently, a nonprofit executive called me to see if I had an example of a code of ethics to share with his organization so that he could produce one of his own. "No," I said, "but I can tell you how to craft one because the first rule is: You can't take one off the shelf."

Each code must be unique and applicable to the organization itself. There are, however, some general guidelines. When you ask your favorite nonprofit for a copy of its code of ethics, see how it compares to these principles:

• It should be written as clearly and simply as possible. Short is better.

• It should provide resources and guidance for questions and not attempt to address every issue. It should be userfriendly.

• It should respond to real-life situations.

The drafters of the code should involve everyone in the process, including volunteers. They need to find out what is on everyone's mind and not leave out the "elephant in the room" — the issues that take courage to raise and address.

The document should begin with a transmittal letter from the board of directors and senior executive stating why it is important. Have similar agencies had ethical missteps? Have national standards or community pressure for transparency changed the climate in which the agency operates? The letter should tell readers (including prospective donors) about what they will find in the document.

The code should contain the organization's mission, values and ethical principles, offering definitions and examples. Drafters shouldn't assume that all readers understand what chosen words mean, particularly in the context of the particular mission of the organization. (What does "excellence" mean for a food bank, for example?)

A code should provide decisionmaking models to help readers evaluate choices when facing an ethical dilemma. Not every situation can be covered in a code, particularly when the evaluation is between two "rights" rather than right or wrong.

The document should discuss common ethical issues that might arise in the field. Conflict of interest is a common one, covering such subjects as gifts and favors, personal and professional relationships and outside activities, not only of staff members, but of board members.

Personal use of agency property and assets is another frequent subject and it's important to remember that donor names and information, as well as clients and customers, are valuable assets.

Privacy, reputation, confidentiality and dealing with volunteers are all related subjects that might be included.

The most important part of many codes of ethics is the question and answer section that

should be relevant and

current. Sometimes they cannot be categorized, but that doesn't mean they shouldn't be included! Here are some:

• Q: I understand the agency's values and how they apply at work. But is the agency also interested in what I do outside of work?

• Q: I e-mail my son at college from work. Will anyone at work read these?

• Q: I think I witnessed some misconduct, but I'm not sure. If I report it, someone will figure out who reported it. I'm a private person and would rather just forget it.

Codes should include resources for employees, volunteers and others, including a telephone number for an appropriate member of the board of directors, perhaps the chair of the audit committee.

Finally, drafters and designers should make the final document attractive, with lots of white space and visual interest. A nonprofit agency should be proud to share its code of ethics with the community and prospective donors, and include it on the agency's Web site!

—Dawn-Marie Driscoll is executive fellow at the Center for Business Ethics at Bentley University and a trustee of the Southwest Florida Community Foundation.

—The Southwest Flo rida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry counties through endowed funds for over 33 years. With over 320 endowed funds, the Community Foundation has provided more than $39.5 million in grants and scholarships to the communities it serves. For more information, call 274-5900 or visit our Web site at www.floridacommunity.com.