Vulnerable communities depend on non-profit organizations for funding aimed at alleviating them from various disparities they face in their day-to-day lives. Impropriety appearance of the organizations can be detrimental if they lack a code of ethics that govern the charitable organizations. The code of ethics sets standards for behavior of various stakeholders involved in all activities of the non-profit making organizations ranging from directors to the beneficiaries themselves. In the recent past, non-profit making organizations have shifted focus to address issues of poor housing and poverty.
The code of ethics for non-profit making organizations seeks to regulate the way organizations are managed in order to achieve effectiveness in their programs with the view of integrity and diversity. The code further explores on issues inclusive of; responsible stewardship, personal and professional integrity, and inclusiveness and diversity. The code clearly states the capacity of its staff, directors/board members, and volunteers towards achievement of the organizational mission goals and objectives. Moreover, it ensures efficient service delivery in the activities it engages in.
Strengths of the code
The code of ethics of an organization is essential as it sets out the responsibilities and ideals of all the professions in the organization. This ensures that directors of the non-profit making organizations are bound to the organization mission as well as their culture. Precisely, the code ensures that board members are not alienated from central decision-making processes, and hence, allowing for evaluation of the organizational impacts in their service delivery, which ensures long-term sustainability of the organization without any opposition from communities being served by the non-profit organizations.
Unethical behavior within a non-profit organization destroys the public trust of the organization. Such instances make the organizations incur government-imposed fines or penalties since most governments restrict unethical conducts in the organizational context. The code of ethics comes in handy in as it mainstreams ethical conduct within the organization thus, saving the organization the wrath of negative publicity. Certainly, trust is the most essential aspect for non-profit sector organizations. Trust assures non-profit organizations garn support from their donors and clients. The code of ethics ensures the existence of trust within an organization thus is a contributing factor to gaining support of organizations from its donors.
Certainly, the code of ethics for non-profit organizations exerts a regulatory effect, which protects all the stakeholders within the organization. This offers a forum for resolving conflicts of interest arising within the organization. The code clearly states the workload for all stakeholders therefore; minimal conflicts will emerge based on specification on what is to be done by whom. The code of ethics further improves quality and consistency within an organization. The code states what is right and wrong for the organization. Through this, ethical misconducts will rarely occur in an organization, which improves quality of service from the organization. The code clearly sets its core priorities, which ensures consistency of the organization in its service delivery.
Weaknesses of the code
Despite the existence of well-stated code of ethics for non-profit organizations, scandals will never cease to exist in the specified sector. Standards set in the code are obligatory and merely aspirations, which might not come to fulfillment. Ethical dilemmas do emerge, particularly when values clash. Maintenance of sound public relations is still a challenge that the code has failed to address, as there exists competing priorities amongst stakeholders within an organizational context. Furthermore, most of what the code of ethics stipulates for is philosophical and prescriptive hence, does not provide proof of its practicality.
The code also has a shortcoming in that it specifies responsibilities, which have limited regulatory function. The code itself has a component of bureaucracy in it thus; stakeholders with higher ranks such as directors limit the functioning of other stakeholders such as volunteers. The code further accords directors or professionals within the organization moral obligations to stakeholders, which makes it difficult to avoid ethical lapses within the organizations.
Recommendations on how to improve the code
The code of ethics of non-governmental organizations should be universal for all nonprofit organizations all over the world. The code should incorporate various cultural aspects because charitable organizations are always involved with communities with diverse cultures. The code should also be updated constantly to ensure that it complies with all applicable legal-laws/requirements. Due to the dynamic nature of the world of non-profit organizations, the code should incorporate learning within the organizational context and should be committed to improving organizational and program effectiveness.
