This article was first printed by California Management Review, in summer vol. It also offers an operational guide in tabular form on the meaning, management, and marketing of the public trust in nonprofit organizations. It identifies five core nonprofit-public transactions: These transactions distinguish nonprofits from firms.
In the 21st century, ethics is neither a luxury nor an option. There is a growing impatience within society with selfish and irresponsible actions that impoverish some, while enriching the crafty.
Hewlett Packard demonstrated its commitment to ethical integrity under the leadership of Carly Fiorina. Reynolds Tobacco Company was caught covering up knowledge about the addictiveness of nicotine.
In addition to social responsibility, there are other compelling motivations for 21st century organizations to make ethical values a priority. With the nation in a recession at the time, the catchy slogan helped Clinton connect with Americans on a critical issue. It seems almost too basic to merit mention, but irresponsible behavior is so common that the obvious must be stated.
Fueled by selfish ambition, greed can cause leaders to lose perspective and rationalize unethical behaviors. The bad news for offenders is that society is more alert than ever before to ethical recklessness that benefits some, while injuring others.
Kilcullen and Kooistra exposed the sins of the R. Sources on the changing role of business ethics and corporate social responsibility. An internal memo distributed throughout the R. Ethics as a Priority More than simply a legal or moral responsibility, ethics need to become an organizational priority.
Leaders must also keep a constant eye on the mission, vision, values, culture, strategy and goals of their own organizations.
However, to succeed in the 21st century, organizations will have to figure out how to make ethics a priority. Priorities are those few things that are deemed most important. Many things are important, some more and some less important, but only a few things are most important.
Ethical values need to achieve recognition as among the elite, most important success factors in modern organizations. As an organizational priority, ethics will not only affect decision-making but also, and ultimately, institutional culture.
To achieve this ideal, there must be an alignment process that integrates business ethics with mission, vision, values, strategies and goals. Ethical values are essentially social in nature, therefore, this alignment process will be concerned with relationships and defining relational expectations.
The goal of an ethical organizational culture is the greater good of all. Internal relationships between leaders and followers, as well as external relationships with clients, customers, vendors and the community are all prized.
As a result, people are treated well consistently and an ethical culture emerges. A great opportunity awaits organizations alert to the potential of ethical values in shaping the future.
One illustration of this kind of possibility thinking is found in a challenge put to the International Olympic Committee.
The challenge originates from a growing disillusionment with the Olympic Games, which has become characterized by the worst features of the competitive culture: Almost simultaneously on another front, disenchantment with the social and ethical consequences of globalization is occurring.
When this occurs, communities benefit from the positive influences employees take from their workplace back to families, friends and associates.On the other hand, Latin American corporate training and development divisions suffer significant internal conflict when it comes time to provide more advanced business training.
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About Herrington J. Bryce. Herrington J. Bryce is the Life of Virginia Professor (corporate finance) at the Raymond A. Mason School of Business, College of William and Mary, an affiliate of its Thomas Jefferson Program in Public Policy, and the author of several books on nonprofits, including Financial and Strategic Management for Nonprofit Organizations (De|G Press, ), a comprehensive.
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