Code Of Ethics In A Nonprofit

The first tool for ensuring ethical practices in a nonprofit is a code of ethics. A code of ethics is a general guide to decisions about actions in the workplace, (McNamara, n.d.). Codes of ethics are not designed to merely ensure that the law is followed in the nonprofit, but to establish a basis for the behavior of the nonprofits board, employees, and volunteers. Examples of values that are usually part of a code of ethics include honesty, fairness, responsibility, and respect. (Rhode, 2009) provides some guidelines for developing a code of ethics. The first step is to review the laws and regulations relevant to the practices of the nonprofit. The second step is to review which values produce the traits of a nonprofit in your area that is considered highly ethical. The third step is to identify the values that are needed to address current issues in your nonprofit that need to be resolved. Fourth, review the nonprofit’s SWOT analysis, and determine what type of behaviors would build current strengths, inhibit weaknesses, take advantage of opportunities, and …show more content…
The term, “code of conduct’ is often used interchangeably with a code of ethics, but they are actually different. While a code of ethics is a general guide to behavior in the nonprofit, a code of conduct specifies actions that are necessary to adhere to the code of ethics, (McNamara, n.d.). Rhode (2009) states that codes of conduct can “clarify expectations, establish consistent standards, and project a responsible public image,” (para. 37). Codes of conduct reinforce organizational values, prevent misbehavior, promote trust, and reduce legal issues, (Rhode, 2009). They are also beneficial for fraud prevention. “Organizations with a Code of Conduct had a 47 percent lower median loss from fraud and detected their fraud 38 percent faster compared to organizations without a Code of Conduct,” (Daugherty & Neely, 2012, para.