Non-profit Ethics

What?
I am currently in the planning phases of starting a non-profit organization based around construction of musical instruments for disadvantaged youth.  We will focus on building electric and acoustic guitars and guitar amplifiers, lending them to local youth for use.  Along with the instruments, we'll provide music lessons.  All of this will be done free of charge for the purpose of focused mentoring of youth in our local community through the vehicle of music.

After reading the section on ethics in Northouse (2010), it became clear to me that I have not explicitly defined the ethical foundation for the organization.  Which ethical theories should be adopted by the organization?

So What?
The ethics to which an organization holds itself are central to that organization's success.  As Thomas, Schermerhorn, and Dienhart (2004) note, "business executives can and must realize that the bottom line of business success always includes an ethics component" (p. 65).  Northouse (2010) points out that "ethics is central to leadership, and leaders help to establish and reinforce ethical values" (p. 382).  Clearly, ethical failures can result in catastrophic consequences as in the cases of Enron and Arthur Andersen.  So, ethics is central.  But which ethical values should my non-profit adopt?

Northouse (2010) describes three classifications of ethical conduct:

1. Ethical egoism - a high concern for self and a low concern for others.  Ethical egoism stresses actions that are best for the organization.
2. Utilitarianism - a medium concern for self and a medium concern for others.  Utilitarianism focuses on creating "the greatest good for the greatest number" (Northouse, 2010, p. 379).
3. Altruism - a low concern for self and a high concern for others.  Altruism puts the best interest of others first. (Northouse, 2010).  

Northouse (2010) also points out five principles for ethical leadership: "respect, service, justice, honesty, and community" (p. 386).

Now What?
How do the ideas above influence the choice of ethics for the non-profit?  The organization focuses on others by definition, so ethical egoism will not apply.  While it would be good to reach a great many people with mentoring through musical education (utilitarianism), our first focus is to develop high-quality mentoring relationships.  Because these types of relationships require that we put others before ourselves, the best ethical classification for the organization is Altruism.

In continuing plans for the non-profit, I will incorporate more purposefully the tenets of altruism and Northouse's five principles for ethical leadership.  I will ensure that we treat all youth fairly and with respect as we offer our services.   We will also strive to be honest as we work with the youth through our mentoring, not communicating what they want to hear but communicating what they need to hear.  And I believe our free instruments, lessons, and mentoring will show others that we exist to serve and build a sense of community in our local area.

Photo courtesy of uyo14