Ethical practice of nonprofit management

 In non-profit organization, unethical behavior is a major problem and has increased the attention to the ethical practice in these organizations. Non-profit organizations face ethical challenges which emerge from criminal violations, misrepresentation and more. With respect to the fundamental principles, nonprofit organizations have the obligation to comply with ethical standards (Renz & Herman, 2016). However, they have failed to follow standards and norms which guide in fulfilling the expectations of the society. They face challenges in creating a culture of integrity and these issue have raises the interest of public toward   nonprofit organization and ethical standards.  They should abide with core values of honest, fairness and responsibility, and maintain standards of conduct.  According to Renz & Herman (2016), the corporate world has faced various scandals from nonprofit sectors.  These scandals have increased the ethical concern since charitable organizations should abide with ethical behaviors when serving the community. The scandals of the United Way of America which occurred in 1990 made the public to lose their trust on nonprofit organizations. The public trust eroded again when organizations such as American Red Cross and others were involved in abuses of power and lack of accountability. Due to lack of integrity and trust, nonprofit organizations have failed to function effectively (Renz & Herman,   2016). Worth (2013) asserts that nonprofit organization have the freedom to make decision, set goals and vision. To function effective and to achieve the goals, these organizations get support from society, donors and government revenue. Society expects the organization to be accountable and be transparent when utilizing public resources. However, questions on accountability have been raised for many decades given that nonprofit organizations have caused charity fraud.  For example, after 2001 September attacks, nonprofit organizations were misleading and there was no fairness in the distribution of funds (Worth, 2013). These scandals have raised the ethical concern on accountability and performance.

 In nonprofit management, the word ‘charity’ means that the organization should show concern, love and respect to the welfare of the community (Tschirhart, 2012). Having understood the word ‘charity’ it is important to note that nonprofit organizations are expected to acts ethically and go beyond the law for them to function effectively. Charity means that these organizations should provide services which will be a benefit to the public. The word ‘nonprofit’ means that organizations should set social goals and strive to meet those goals in order to make difference in the community (Tschirhart, 2012). In managing charity, board and members have the obligation to provide care, loyalty and obedience. They are accountable and responsible in creating policy, manage resources and performance. The author asserts that in order to shows the unique relevance of charity, organizational members should participate actively, show honor and integrity and strive to achieve mission and vision (Tschirhart, 2012). Nonprofit organizations focus on financial management with an aim of meeting the social needs.  In discussion ‘charity’ nonprofit organization should  emphasize stewardship  and  concentrate much on accounting system in order to  provide fair financial reports.  On area of management, budgeting and managing cash are important sectors and in this case, ethical consideration must be implemented in order to have effective management (Tschirhart, 2012). Generally, in nonprofit management, unique relevance of charity is demonstrated through good stewardship. In other words, organizations should abide with core values and utilize the funded resources effectively. On the same note, charity is seen when the organizations serve the community well with respect and integrity.

 

Reference

Worth, M. J. (2013). Nonprofit management: Principles and practice.

 

In Renz, D. O., & In Herman, R. D. (2016). The Jossey-Bass handbook of nonprofit leadership and

management.

 

Tschirhart, M., & Bielefeld, W. (2012). Managing nonprofit organizations. San Francisco: Jossey-Bass.