Code of Ethics for Best Giver Non-Profit - Research Paper

Introduction

It is vital for every non-profit making organization to develop a code of ethics that guide its operations and behavior of its stakeholders. It provides employees, volunteers, and sponsors with a guideline they should follow when making ethical decisions (HFMA's Code of Ethics, 2016). They help t build public interest and trust; thus, supporting organizational activities. The paper researches the code of ethics for Best Giver, a non-profit organization.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Research Aim

The research paper seeks to address code of ethics for Best Giver, which is a non-profit organization. Also, it researches about the importance of the selected elements of the code of ethics as they apply in the organization. The research is crucial since it influences perceptions of stakeholders, and change their behaviors so that they behave ethically.

Code of Ethics

Personal conduct and integrity: All employees and volunteers of the organization should act with honesty, openness, and integrity to promote a workplace environment that fosters values fairness and respect (Bhandari & Bradley University, 2010). Volunteers and employees should follow the code of conduct to avoid unethical behaviors that would lead to loss of public trust.

Governance: The governing body of the organization is responsible for the setting mission and vision statements that provide strategic direction to the entire organization, including oversight of finances and operations (Grobman, 2007). The board should respond to shareholder issues and inform them about the progress of various projects.

Legal compliance: The non-profit organization should comply with all laws applicable to non-profit organizations relevant locally and internationally, and this helps to avoid engagement in unethical practices. Such acts include local and national regulations (HFMA's Code of Ethics, 2011). They promote compliance and ethical behavior.

Responsible stewardship: The leadership of the organization and its stewardships should manage resources well and responsibly, including using a percentage of the budget to drive its mission and compensation of the staff adequately according to organizational policies (HFMA's Code of Ethics, 2016). Besides, it should pay taxes as obliged if any according to any legislation in place.

Program evaluation: The organization must regularly review and audit each program it undertakes and has put in place systems and mechanisms to learn from past mistakes to improve future projects (Johnson, 2009). Also, the organization has flexible management practices to accommodate changes taking place in non-governmental organizations.

Fundraising: The organization solicits funds from the public and donors, who have the right to be informed appropriately about expenditure and involved in the planning process (Kidder, 2004). As a result, the diversity and inclusivity policy promotes the engagement of all stakeholders.

Analysis of Code of Ethics

Personal integrity is a necessary component in the code of ethics since it helps to ensure the organization carries out its activities honestly and ethically manner. Since employees and volunteers are first ambassadors of the organization, they should foster integrity, fairness, and respect, and this helps to gain trust from the public (Lawry, 2006). Since it is a non-profit organization, it depends on donations and sponsors, who evaluate integrity issues among employees before approving donations. Therefore, employee integrity promotes trust; thus, building a positive image, attracting more supporters.

Additionally, corporate governance is an essential component of the code of ethics since it defines the organizational direction that eventually, influences ethical behaviors among stakeholders (Mathews, 2016). It guides the board to develop policies stakeholders should engage to avoid conflict of interest, which if not managed, can lead to cut in funding. Also, it promotes equality and inclusivity when hiring to ensure the organization has the right employees with required skills (American Institute of Certified Public Accountants, 2008). Importantly, corporate governance ethics guide employees to engage in ethical activities, promoting integrity and respect. Governance in the organization determines its ability to execute its programs successfully as well as engaging stakeholders.

Thirdly, compliance is the responsibility of every organization. Local, national, and international laws promotes organizational ability to seek more funding. It is because financiers must evaluate integrity, and legality of organizations before supporting them (Strickland & Vaughan, 2008). Therefore, engaging in legal activities creates an easy environment, and it sustains its operations through certification and continuity of its services. It ensures that all employees comply with legal obligations so that the organization does not engage in unethical behaviors that would lead to revocation of its operating license.

Regarding responsible stewardship, the non-profit organization should ensure it utilizes its resources effectively to achieve the mission (David, James & Ken, 2010). Since the organization does not make any profit, it should spend a reasonable of its budget to pursue its programs, not forgetting administrative expenses. The component helps the organization to ensure it operates within the limited budget and should promote the interest of the stakeholders such as donors by developing an effective reporting system. In this regard, the element helps to secure funding continuity.

Similarly, program evaluation code is vital since it helps the leadership to evaluate every project and incorporate lessons learned on future projects. The component helps to communicate with donors about the stages of each program so that donors can support such programs to completion (National Council of Nonprofits, 2018). Also, the evaluation makes sure that the organization is responsive to its constituencies. Besides, assessment of programs helps to keep on track to avoid deviation from intended goals. Besides supporting charitable organizations in the organizations, it is a source of learning to volunteers and project managers (Board Source, 2018). Therefore, it increases the ability of the project team to succeed in future projects.

Finally, funding code of ethics is another critical factor, affecting its operations. The organization depends on funding from the public and donor organizations (Bromley & Orchard, 2016). Therefore, the policy helps to respect the rights and obligations of donors like respecting their privacy if they do not want to be disclosed to the public. Also, it helps funding by informing donors about the mission of the organization and how it uses their donations (Oehler, 2004). Moreover, funding code helps to ensure the organization has up to date financial reporting and records so that donors know that it has used its donation for the purposes intended.

Conclusion

In summary, it is necessary for every organization to develop a code of ethics to ensure stakeholders behave ethically. All stakeholders should follow a code of ethics to ensure they avoid behaviors that would lead to a conflict of interest. The practice of ethics developed for the organization includes personal conduct and integrity, governance principles, legal compliance, and responsible stewardship. Other practices are; program evaluation and funding policies. These policies influence the reputation of the non-profit organization, attracting more donors.

References

Bhandari, S. B & Bradley University. (2010). Ethical Dilemma of Nonprofits in the Agency Theory Framework. Journal of Leadership, Accountability & Ethics, 8(2), 33-40.

Bromley, P., & Orchard, C. D. (2016). Managed Morality: The Rise of Professional Codes of Conduct in the U.S. Nonprofit Sector. Nonprofit and Voluntary Sector Quarterly 45 (2), 351-374, 2016.

National Council of Nonprofits. (2018). Code of ethics for nonprofits - Why your nonprofit may want to adopt a statement of values. Retrieved from https://www.councilofnonprofits.org/tools-resources/code-of-ethics-nonprofits-why-your-nonprofit-may-want-adopt-statement-of-values

David, C. James, A & Ken, R. (2010). Ethical Climate in Government and Nonprofit Sectors: Public Policy Implications for Service Delivery. Journal of Business Ethics, 94(1), 3.

Grobman, G. M. (2007). An Analysis of Codes of Ethics of Nonprofit, Tax-Exempt Membership Associations. Public Integrity, 9(3), 245-263.

HFMA's Code of Ethics. (2011). Hfm (Healthcare Financial Management), 65(6), 30-32.

HFMA's Code of Ethics. (2016). Hfm (Healthcare Financial Management), 70(6), 106-107.

Johnson, D. L. (2009). Seeking Meaningful Nonprofit Reform in a Post Sarbanes-Oxley World. St. Louis University Law Journal, 54(1), 187-240.

Kidder, R. M. (2004). Foundation codes of ethics: Why do they matter, what are they, and how are they relevant to philanthropy? New Directions for Philanthropic Fundraising, 2004(45), 75-83.

Lawry, R. P. (2006). Accountability and nonprofit organizations: An ethical perspective - Lawry - 1995 - Nonprofit Management and Leadership - Wiley Online Library. Retrieved from https://onlinelibrary.wiley.com/doi/abs/10.1002/nml.4130060206

Mathews, M. A. (2016). Ethics and Stewardship in Nonprofit Organizational Leadership. National Social Science Journal, 46(2), 61.

American Institute of Certified Public Accountants. (2008). Non-profits Adopt Governing Policies. Journal of Accountancy, 205(2), 21.

Board Source. (2018). Nonprofit Board Member Codes of Conduct and Ethics. (n.d.). Retrieved from https://boardsource.org/codes-of-conduct-and-ethicsOehler, J. (2004). Integrity and ethics getting attention now. Business First of Buffalo, 20(31), 30.

Strickland, R. A., & Vaughan, S. K. (2008). The Hierarchy of Ethical Values in Nonprofit Organizations. Public Integrity, 10(3), 233-251.