March, 2006 -by Peter C. Brinckerhoff

This Month's topic: Ethics and Management


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This Month's Topic: Ethics and Management
Each month, this area provides with a number of my favorite and most helpful sites regarding the topic of the month.

Management Tip of the Month

Each issue, I start with a discussion of my management perspective on the month's topic, and give you a few hands-on ideas to consider.

Recommended Publications

Here, I provide you with my recommendations on the  materials available that can help you become more mission-capable in the area of Ethics and Management.

Technology

I provide you with some good ideas for uses of tech to better your organization in the area of Ethics and Management.

Marketing Tip

So much to say, so little space to say it.....

Next Issue

In April, we'll examine an issue that is very important: Staff Satisfaction. How can you keep the people you pay happier? We'll take a look.


Websites of the Month

Here are my recommendations for websites of interest on this month's topic,  Ethics and Management

www.nonprofitpanel.org/final The Final Report of the Panel on the Nonprofit Sector. Over 120 recommendations, most for nonprofits, but some for funders and regulators.
www.managementhelp.org/ethics/ethxgde.htm Yet again, Carter McNamara has tools for us...in this instance, the Ethics Toolkit For Managers. And, it's free!
www.adviceonmanagement.com/advice_ethics.html Advice on Ethical Management through history. Scroll down past the ad for many wonderful quotes.
www.angelo.edu/events/university_symposium/1985/rion.htm A very worthwhile read...an article on management ethics by Michael Rion

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Management Tip of the Month
Ethics and Management
As regular readers know, I always ask for ideas for topics for future newsletters at the beginning and end of this publication. I regularly get a couple of suggestions a month, and they often track pretty closely to the requests I'm getting at the same time for keynote or training topics.  But last spring, when I was in the midst of putting together my list of topics for early 2006, I got call after call and email after email to speak and write about ethics in nonprofit management. I was worried (and wrote at the time in my blog) that this was just a trend, and would soon go the way of interest/paranoia in outcome measurement, social entrepreneurship, capacity building, and other buzz words that have burned their way through our sector.

Fortunately, the buzz continues. And, I really don't care anymore why it's there. It IS an issue that we need to examine and re-examine. It IS an issue that the public has, does, and will care about. It IS one of the key things that defines us and separates us from the for-profit world.

We are, after all, charities, and charitable behavior is, at its core, an ethical decision. Deciding to help others, deciding to make a (often low paying) career out of helping others is a decision we make based on our belief structure, our ethics.

So, if we're already so ethical, ethical management behavior should come naturally, right? It should not be something we have to spend (our very limited) time on, right? Or not. One of the quotes (from the list of links above) that I love the most is from Terry Hands, a British Theatre and Opera manager: "We may pretend that we are basically moral people who make mistakes, but the whole of history proves otherwise."

While overly cynical (because I think that the nonprofit sector is evidence in the other direction) Hands is still on to something: we give ourselves s too much of a break sometimes. We need to regularly examine the ethical dimensions of our decisions, our policies, our actions.

Ethics has always fascinated me for two reasons. First, although lots of people moan about how hard it is to make ethical decisions, for about 95% of the decisions we have to make,  we KNOW the right thing to do...it's the doing that's hard.  As kids, we know stealing candy is wrong, but we want the sweets so badly. As adults, we know that lying is wrong, but stretching the truth so as not to hurt someone? It sure makes our life easier, and who is really hurt? And, the vast majority of us learn to upbraid ourselves and try daily to do better. So we know (and usually do) the right thing.

But then there is the other 5% of decisions, the questions that are really, really tough ethical ones. Here are three, relatively simple examples:

-Should our organization help everyone we can as soon as we can and not carry over any funds from year to year, or should we build our organization financially so that we can be sure to be here to help people in the future?

-Should we help a few people with very high quality services that can, perhaps, change their lives for the better, or help lots with adequate services that can get them by?

-Should we spend more money on staff benefits so that we don't have the turnover we are experiencing, or should we put the money into direct services? (Note-we talked about this issue in August when we discussed Ethical Benefits )

In this issue, I'm not going to go into how to solve questions in the 5% set of dilemmas. I am going to make some statements and some suggestions on how to deal with the 95% issues more actively.

Three things to think about:

As organizations, we have to be seen as ethical mainstays. Because we have chosen the path of charity when we fall off the pedestal the media, the public and our funders jump all over us, and frankly, that's how it should be. We need to avoid even the appearance of impropriety.

As a leader, what you say matters. What you do matters more. You have to walk the talk every day in every way. You need to lead in the area of ethics by openly discussing ethical behavior in your decision making, your policy making. Letting ethics be "assumed" allows ethics to be undiscussed. Letting ethics go undiscussed could give employees the idea that they are unimportant. So talking is good. But if you act unethically, ever, even for the smallest thing, you throw your ethical credibility out the window.
 
Doing the right thing is always the right thing, and its always the smart thing. This piece of wisdom came from my grandfather, who always added: "It just may take some time for it all to work itself out." My memory of him saying that encourages me in ethical choices constantly. I always assume that he's one of the people reading that newspaper story about my behavior!

That's all we have space for here--and obviously there is not a three-point solution to behaving more ethically. My urging to you, your staff, and board is to surface the ethics issue more often, to discuss how your organization appears to be acting to the community, how the management team appears to be acting the staff, how the board appears to be acting to the management team. Keep the issue of doing the right thing where it belongs: first in any decision making.


If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

And, remember to take a look at the Mission-Based Management Blog.

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Print Resources

My recommendations for texts on Ethics and Management are shown below. Note: literally dozens of good, solid management books, from Good to Great to The 8th Habit to The Leader Within You all discuss the key role of ethical leadership in successful organizations. So, there is lots to choose from, but I think these books do a great job of saying what needs to be said.

Ethical Ambition by Derrick Bell

Monday Morning Leadership by David Cottrell

Leading Without Power by Max DePree

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Technology Tip 
Can tech help you operate more ethically?
Yes and no. In the most basic sense, of course your computers can't make you more ethical, or pose philosophical questions like HAL in 2001, A Space Odyssey. But tech can help you be more transparent, and that fact can and does nudge many of us to think and act more ethically. I remember the first time I was told by a philosophy teacher in high school, "Always act as if whatever you do will be the lead story in the local newspaper tomorrow....with pictures." Ouch. That set me back a bit, particularly as a teenager!

Today's tech can help you distribute your policies (and policy decisions) more broadly, allow you to bring more people into many policy discussions, enable you to put things like your audited financials, your 990s, your strategic plan, and even minutes of board meetings on your website for everyone to see. I think that transparency is an ethics accelerator. So use it.

One other thing on tech: you can operate your technology un-ethically. This primarily has to do with looking at people's email, reviewing the websites that they visit, etc. While some organizations need to do this for other ethical reasons (they have medical confidentiality issues, or are part of the criminal justice system) others seem to do it just because they can, or for reasons of an administrator's ego/paranoia. If you need to be delving into your employees electronic communications, fine. But the ethical thing to do is to let them know. "We have a policy here of randomly reading emails, or of randomly checking IP numbers of websites visited. We do this because...."

Make sure your tech is not an enabler of un-ethical behavior. 

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Training Schedule for Peter Brinckerhoff

Below you'll see the date, location, and topics of public training I'm scheduled to do in the next few months. For more information on a particular speaking engagement, get in touch with the contact person listed in the right hand column, or email me.

For more information on my availability throughout the next 12-18 months, available topics, sample agendas, and fees go to www.missionbased.com/training.htm

Date City Topic Contact
3/08/05 Chicago Setting Strategy in the New Environment Easter Seals, Inc.
Bob Petrosik
bpetrosik@easterseals.org
3/13/06 Battle Creek, MI Nonprofit Stewardship Ann Mavity
Fieldstone Alliance
amavity@fieldstonealliance.org
3/14/06 Detroit Nonprofit Stewardship Ann Mavity
Fieldstone Alliance
amavity@fieldstonealliance.org
3/16/06 Bloomington, IL Mission-Based Management United Way of Macon County
Gregg Cott
gcott@uwaymc.org
4/05-06/06 Baltimore Intro to Marketing NISH
Dave Wessel
dwessell@nish.org
04/07/06 Quincy, IL Mission-Based Management United Way of Adams County
Cheryl Waterman
cheryl@unitedwayadamsco.org
4/23/06 Chicago Performance Counts Liz Livingston-Howard
liz-howard@kellogg.northwestern.edu
www.kellogg.northwestern.edu/nonprofitexeced

Marketing Tip
Marketing and Ethics

Should we be ethical for marketing reasons. No. As I said in the management tip, the main reason to do the right thing is because.....it's the right thing!

But, once your organization is there (doing the right thing), don't be naive. Your markets, your community, your donors want to know that you are ethically motivated and behaving with good organizational ethical standards. So, if you are doing the right thing, let people know. As I said in the tech tip, put things online (your policies, your audit, your outcomes, your strategic plan). Show that you have nothing to hide, nothing that is untoward.

And, ask people what they want to know and see in your ethical management efforts. You may find things you need to tweak, or areas you need to put in policy that you are already doing, or activities that you can trumpet to your community that will give the community an ethical comfort factor about your organization.

So, you have to have good ethics to market them (truth in advertising!), but don't hide your good ethical practices. Let your markets see you doing the right thing!

If you want to see more about this in detail, take a look at more about my book Mission-Based Marketing; Second Edition

If you found this hint helpful, there are lots more management, marketing, and technology ideas for you in the "Ideas" section at www.missionbased.com. Check them out--they're free.

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Future Topics for the Mission-Based Management Newsletter....
April Staff Satisfaction
May Boards who cross the
Policy/Management line
June Employee Rewards
July Saying "No" to Community Needs
August Board and non-CEO Relations
September Executive Transition
October Advocacy
Send me your topic suggestions at peter@missionbased.com

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You asked, so here they are: Past Single-Topic Issues of the Mission-Based Management Newsletter...
2004 2005 2006
January Business Development Strategic Planning Generation Change 
February Fund Raising Leadership Accountability
March Volunteers Core Competencies
April Financial Management Expanding to New Markets
May On-line Marketing  Endowments 
June Transparency  Tech and Mission 
July Nonprofit Start-up  Sustainability 
August Governance Ethical Benefits 
September Political Activities Entrepreneurship 
October Attracting and Retaining Younger Staff, Board, and Volunteers Internal Communications  
November Outcome Measurement Board Recruitment 
December  Lifelong Learning Better Budgeting 

 
 
 

Copyright 2006, Corporate Alternatives, inc.