Ethics program and code of standards for nonprofit organizational consultants

¶ … Ethics Program for Nonprofit Organizational Consultants

Appropriate standards and procedures section for a code of ethics.

Because of the potential for conflicts of interest and the requirement to use government funds appropriately, there is need for a unified set of ethical standards for consultants advising nonprofit organizations (NPOs) today (Kelly, 1998). Moreover, Smith and Richmond (2007) emphasize that, "There is concern that nonprofit organizations do not use charitable dollars as efficiently as possible to advance their charitable mission. This potential lack of efficient flow of funds contributes to the need to examine accountability within nonprofit governance" (p. 75). Besides helping nonprofit organizations use their resources more effectively, a code of ethics can help these organizations avoid missteps and mistakes that can adversely affect their credibility (Smith & Richmond, 2007). According to these authorities, "Competitive advantage is supplied when nonprofit organizations disclose their ethics codes. Oversight agencies, such as the Better Business Bureau (BBB) Wise Giving Alliance, evaluate and compare organizations on numerous measures of performance and accountability" (Smith & Richmond, 2007, p. 76). Although every NPO is unique in some fashion, some of the general issues that should be included in the standards section for such a code of ethics for an NPO consultancy include what types of consultation services are acceptable and advisable for nonprofit organizations to pay for using government-provided funds and which individuals within the NPO should be responsible for the decision-making process used to make this determination. For this purpose, this firm's general ethical standards are as follows:

Harassment.

The NPO consultancy will foster a work environment free of harassment of any type.

Discrimination.

The NPO consultancy will comply will all relevant federal, state and local laws and regulations concerning discrimination.

Confidentiality

Recognizing the special trust that is placed on nonprofit organizations, the NPO consultancy will ensure the confidentiality of all transactions with its clients.

Employee relations.

The NPO consultancy will ensure that employee grievances are processed in a timely and fair fashion, and that all personnel receive equitable opportunities for advancement, pay increases and training based on a standardized performance appraisal system.

Client relations.

The NPO will maintain the strictest levels of professionalism, courtesy and confidentiality in its dealings will its clients.

The contents of the procedures section for such a code of ethics would also focus on how to administer these foregoing issues effectively and what steps should be taken when inappropriate or unlawful activity is identified as described below.

B.

Plan for an appropriate ethics training program.

In order to ensure that all of the factors that should be taken into account in formulating an ethics training program for the NPO consultancy, Smith and Richmond (2007) recommend that all employees be included in the planning process. This approach is also consistent with the guidance provided by Myers (2003) who reports, "The best way to draft a code of ethics all employees will follow is to bring together a multidisciplinary team from all parts of the organization. Employees must then be trained in what the code means using real-life dilemmas they might encounter on the job. To help guide the planning process for developing an appropriate ethics training program, Sims (1999) recommends that any ethics training programs should be evaluated using the following four criteria, reactions, learning, behavior, and results as follows:

1. It is useful to examine individuals' reactions to the content and delivery of the ethics training. If individuals see the training as irrelevant or contrary to the norms of the organization, it is unlikely that the training will change their behavior.

2. Individuals' learning might be tested. If individuals never learn or retain critical information in the ethics training program, they will not be able to apply it.

3. NPO consultants might look for changes in behavior; it seems logical to attempt to measure this behavior and compare behavior designs employed in these comparisons; and,

4. NPO consultants should examine the results of training. It is possible that the training can be successful in teaching ethical principles and in changing the behavior of the individuals who receive training but that the results of those changes might not be relevant, worthwhile, or quite what the organization expected (Sims, 1999, p. 158).

When is training offered?

All employees of the NPO consultancy will receive initial training concerning the firm's ethical standards and practices upon hiring. Refresher and adjunct training will be provided as the need is identified by the noncompliance investigation team's reporting and the trended data that results. For example, if a given area has received a significant number of violations, this area will be targeted with specialized training.

What does training consist of?

The training provided by the NPO consultancy will be specifically tied to the firm's mission statement and statement of ethical standards.

Who will administer training?

The noncompliance investigation team will be responsible for the provision of in-service training but the firm may outsource some training if the requisite expertise does not exist in-house.

What is the duration of training?

The duration of the training will depend on the subject area content. For example, the initial training will require one full days of attendance by new hires as well as existing employees and officers who have not received this training. Other adjunct and specialized training may require shorter or longer periods depending on the issues being covered.

Entrepreneurial

This stage is primarily concerned with identifying the goals and the means. Key components of this stage are identifying needs and intended uses for outcomes assessment results, identifying key audiences and obtaining their support, shifting modes of thinking from input measures to output measures, reexamining the mission and goals/objectives of ethics training, and developing a general mission for the outcomes assessment effort. This stage also includes the identification of one individual or group who is responsible for managing the assessment.

Collectivity

This stage focuses more closely on the execution of the assessment effort. Who initiated the effort? Who is interested in the results? What will be assessed? How will the assessment be carried out? Cooperation and support so essential to a successful assessment effort are jeopardized if interested and affected parties are not included in the assessment process.

Formalization

This stage is essential to the development of formal assessment procedures, such as setting the time schedule for the outcomes assessment effort, selection of appropriate assessment instruments, and collection and analysis of data. If the results are to be persuasive, it is important to have agreement and discussion when these design decisions are made.

Elaboration

This stage emphasizes the dissemination and incorporation of assessment results into the decision-making process in the ethics training program. This stage is critical to establishing the link between outcomes assessment of ethics training data as a reflection of program (and particular module) quality. It is important at this stage to make sure that all recipients of the data have the knowledge required to successfully interpret the results.

Renewal or decline

The final stage is highly dependent on the use and evaluation of the outcomes assessment results in the elaboration stage. Renewal or decline depends on if and how the feedback is used. Renewal typically is accompanied by a redesigning and streamlining of the ethics training efforts. Decline suggests that experiential ethics training will probably disappear and that external demands for ethics training may be perfunctorily satisfied with rule-based drills on topics such as mastering the organization's code of ethics.

Source: Sims, 1999, p. 159.

This general framework will be used in administering the overall improvement plan for the NPO consultancy following the steps described further below.

Frequency of plan review for improvement. Periodic review of the NPO consultancy's code of ethics is an essential element in ensuring it remains timely and effective and for identifying opportunities for improvement. For instance, according to Myers (2003), "Regular refresher courses are important because ethics training is perishable -- people forget" (p. 28). Likewise, Sims (1999) emphasizes that, "Assessment of ethics training efforts is not complete without a follow-up plan for its improvement" (p. 160). Therefore, the noncompliance investigation team will provide a report of violations of the firm's ethical standards and practices to the chief executive officer each month as well as immediately, depending on the severity and type of violation involved.

Responsibilities for determining changes to the policy.

It will be the responsibility of the chief executive officer to determine when and what changes are required to the firm's ethical standards and practices, but the above-described noncompliance investigating team may provide recommendations for the purpose based on the results of the trended data concerning types and severity of violations.

Criteria to be used to determine the areas that require improvement.

Based on the trended and weighted results provided by the noncompliance investigating team, problem areas will be identified and specialized or refresher training will be provided to the individual(s) responsible for violations. In addition, individual counseling may be required.

Techniques for communicating changes/improvements to employees.

The noncompliance investigating team will draft a memorandum each month for the chief executive officer's review and signature indicating recent trends in violations of the firm's ethical standards and practices and what steps have been taken to resolve them, including training scheduled, reminders to staff and other remedial actions taken.