The Business of Ethics Part I

Being involved in local community organizations as much as I have been over the past twenty years, it never ceases to amaze me on how many not-for-profit organizations do not believe they are a business. After all businesses don't practice ethical behaviour do they?

Ethics of businesses is a topic better left for another day, however I have been thinking a great deal lately about the business of ethics. Churches, charitable organizations, not-for-profit, etc. are abundant in today's market and make for some of the least efficient and clumsy businesses out there.

When advising organizations on the BREAK model, there is often very little problems in having the organization define their 'Believe in a Vision'. Many organizations have spent more time in fact on their visions, missions and goals then on the business itself.

The first place I find they all struggle is with the concept of 'Right People, Right Roles'. After all how do you say no to a volunteer? Who wants to work for the small not-for-profit vs. the corporate superstar or next web2.0 company?

The reality of the situation is that, just like any other business, the right people will make or break the not-for-profit business. If we are trying to attract a certain demographic segment to our church, you need a pastor or priest who appeals to that segment. Someone who engages them, makes them think and, most importantly, makes them want to contribute their time, talents and treasures to the not-for-profit.

Ultimately it is more important, not less important, to be able to get rid of anyone who does not fit the overall vision of the organization. Is it ethical? How can you fire a volunteer? Does this show love for others?

The answer to all three is easy: YES. In fact I truly believe you are showing more love and devotion to a volunteer or employee by having a truthful, candid conversation about their fit in the organization than ignoring it and watch them, and your business, fail miserably.

If you are unable to surround yourself with the right people, working in the right role, then your business will flounder. Do yourself a favour and the ethical decision; make that change you've been avoiding; part ways with that one employee who just doesn't get it; let a member of your not-for-profit board go that just distracts you from your ultimate goal -- you'll be a stronger and more ethical business for it.