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Assignment - Ethical Issues in Non-Profit Organisations

Article - Classification of Program Activities: How Nonprofits Create Social Value by William Brown.


Ethical lapses on the part of non-profit organisations can damage the organisation itself. Present study deals with finding out the ethical issues found in the non-profit organisations and their impact on the organisations. Besides all there are certain issues being faced by the non-profit making organisation which are as follows:-

  • Salaries and perks
  • Poor management of accounts
  • Flaws in the financial management system
  • Not paying tax on time
  • Poor management of conflicts

The case study selected for the paper has defined the types of the activities being performed under the chosen program and its social value by the non-profit making organisation. By analysing the case study, the ethical issues can be found in the current study.


Question 1 - Critically analyze the case study while highlighting the author's point of view.

Answer - 1.1 Discussion of the case in a nutshell

Here, the paper characterizes just as clarifies a structure so as to group the program exercises utilized by the non-benefit associations so as to accomplish open profited goals (Newcomer et al. 2015). Thus, drawing on hypotheses just as practices from the system, non-benefit the board just as program arranging, it has been endeavoured to propose five program exercises offices that gives a general language just as structure for examining the vital choices that are ordered in the non-benefit associations.

1.2 Discussions about Program Activities

Non-benefit associations include in a few projects so as to produce open advantage results. The exercises of United States Internal Revenue administrations are alluded as program benefits just as necessities charge absolved associations in itemizing the achievements of program administration (Komic et al. 2015). The grouping of program exercises can be guided through making the proposed outcomes over different dimensions of investigation, for example, singular, social, and political and network just as thinking about the accentuation on the program exercises. The outcomes are considered as the favourable circumstances just as change created as discoveries of the program exercises (Bakardjieva and Kimmel 2017). Order of the exercises is critical as it portrays all the applicable alternatives just as the issues associated with the strategies that can encourage understanding the program decision choices for the administrators. It analyzes just as difference the program that should be sent in unmistakable settings.


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The program exercises work simultaneously in same association. Usually the associations do the administrations just as building up the structure or promotion type exercises. It is potentially charming the topic of research investigating the way toward overseeing program procedures that are coordinated in the association (André and Pache 2016). The immediate administration conveyance, activation of grassroots, creating limit, state funded instruction, support just as research. The all inclusive characterization of the conveyance modalities are encircled as a key determination for the chiefs. The center exercises just as dimension of recipient contribution and normal yields just as planned outcomes.

1.3 Learning Derived / Conclusion

The non-profit organisations seek for several as well as complimentary outcomes that are publicly benefitted. It involves in development of community and advocate for the issues as well as foster the process of preservation based initiatives. Hence, blending as well as combining the activities (Macnamara et al. 2016). In addition, the classification across the results reiterates program portfolio options for non-profits, policy makers as well as funders might be considered. The approaches operate in the process and substantive operational value as well as conceptual value in order to distinguish the process and time for applying multiple approaches that are used. After recognising the program activities as well as appreciated by the managers in such way that the conceptual models elaborate as well as compare approaches.


Question 2 - What are the ethical issues of nonprofit organization? Explain with the help of suitable examples.

Answer - 2.1 The ethical problems associated with the Non-Profit making Organizations

Money laundering: Non-profit organisations face ethical issues in money laundering. The organisations face ethical dilemmas in order to decide accepting or rejecting the donations that that include any unpalatable association. For example, the Stanford Institute for research declined considering potential gift the foundation named as Playboy. On the contrary, the ACLU rights project for women accepted gifts from the types of foundation (Jurkiewicz 2016). Currently, several corporations are trying to make image greener via certifying with the environment based enterprises and the groups included in the process. In addition, there are answers to the problems and considered as better methods to address them.

In addition, investment policies is one of the major issues found in the non-profit organisations. The strategy refers to invest in the process of venturing further mission for the organisation (Wymer and Rundle-Thiele 2017). Several non-profit leaders resisted pressure in adapting socially responsible in order to invest in the best possible way to have proper mission as well as individual divestment.

Terrorism: According to Freeborough and Patterson (2016), the overhanging statement draws specific attention to face troubles links that interconnect the actions as well as acting as terrorism. It can be delivered towards the process and operation of the non-profit making associations. While, effective understanding of history as well as global affairs are mediated properly and covering the acts. It is also important to understand the process and develop effective relationship to the notions of truth. The non-profit organisations are not directly sourced. Hence, it is important for the organisations to focus on the process so that this kind of issues is not occurred.

People not willing to work: The top level managers in non-profit organisations are seen dedicating same amount of time as well as effort to develop the organisation as well as ensure success. However, common practices regarding compensation for profit comes under the process of assessment in the organisations (Freeborough and Patterson 2016). The practices as travel expense reimbursement and lavish travel as well as paid vacation time can cause outrage in donor base of the organisations. The compensation of an executive is considered as significant elements for presenting transparently as possible to the donors. That's why, most of those who are not ready to work in the non-profit organisations that have been considered as ethical issue for the organisation.

Unavailability of the fund sources: A non-profit organisation cannot turn away money. Most of the non-profit organisations are seen lack of adequate financial sources. There is only 5% organisations are found as properly funded. On the other hand, the non-profit organisations need not to be in the business to monitor financial status (Helmig et al. 2015). It is easy as well as overlook the inaccuracies that fraudulently alter specific numbers. This type of negligence may issues in the process and organisational funds. It is necessary to involve auditor who is independent to audit all the sources responsible for funding as well as expenditures. It helps to ensure proper aspects of monitoring are performed and the type of auditing that develops administrative budget.


2.2 Suggestions to NPs

The morals of a business are considered as high issue that possesses a surprising corporate issue that has occurred in numerous fields like non-benefit associations. Wrong usage of the procedure can prompt make broad harms (Lin-Hi et al. 2015). Be that as it may, it has been contended that the staffs of the non-benefit associations are the significant donors in business just as decrease in the moral standard of business. Subsequently, it is required to pursue a few standards and guidelines so the moral issues can be kept away from.

Ethics can be characterized through making formed by close to home, proficient just as societal qualities. However, it is difficult to indicate. The clashing perspectives have ruled exchange of ethics for long time. Ethics implies on the way toward acting so as to cause the correct choice just as to create great conduct. The strategy fuses appraisal of the benchmarks nearby characteristics and guidelines. It is one of the open choices that is used to acknowledge the perfect decision similarly as going about as demonstrated by the decision. In this way, morals are considered as helpful instructs and demands similarly as acquirement of good data. Additionally, capacities which can be applied so as to determine how the problems are looked in regular day to day existence

Crane and Matten (2016) referenced that fundamental authority strategy and individual tendency does not immediate get right blueprint. Along these lines, it is huge and requires worldview for ensuring functional understanding in ethic fundamental authority. Moreover, the theories associated with the making of convincing and reasonable practical insight. There are a couple of theories given in the perspective of the morals like values and utilitarianism. Institutionalizing the moral theories give a standard on the strategy should continue with others through reasoning about rights similarly as wrong of action. The theories are as a general rule into two requests and significant. It is critical for the staffs to be moral in making their practices for their disposition of calling (Michaelidou et al. 2015). What's more, the nature of the clerks who all are holding trustworthy positions in accordance with the clients and in general populace. In this manner, they depended after making fit judgment comparably as going to pick. In this way, it swings effect to the course of action of financial advantage of work. In addition, having proficient statues also as ethic checks. In like manner, the key requires keeping up the confirmation of customers comparatively as open to be skilled likewise as ethic lead.


The get-together and course of action of natural information in Australia has been a straightforwardness back outing yet appears to have accomplished a gathering, with a few present government rehearses right legitimately endeavoring to improve the confirmation base for methods with conventional goals or impacts. This has agreed with wide advances in average science, improvement, and examination procedures. Low records, utilitarian records with respect to trademark trades, asset accounts in genuine cash related and physical terms and condition accounts are joined into made by representatives. Despite these national-scale accounting groundworks, there have been a couple of run of the mill starters. The Great Barrier Reef Land Account is a SEA Abased asset account made by ABS that gives arrive use and spread zone verbalizations for locale flanking the world's most significant coral reef. The examination also merged the components that are get in the Australian Accountancy Industry (Kretser et al. 2017). The cutoff points are, for example, trademark fancy, missing data measures, sharing, coordination, cost, a great deal of faithful quality on business data and research, uncalled for unequivocal of information basics, business obligation and short-termism. All things considered, it is required to get plans that can coordinate the issues about the information gathering in the affiliation.

It is essential to improve budgetary common sense of standard use of the favorable circumstances. Regardless, it is required to be strong and on the condition of general resources comparably as ordinary framework that can course people interface with the base (Jeavons2016). Collection comparatively as plan of common information in Australia changes into an ease back excursion that is evidently rehearsed with crossing point and there are generally couple of government rehearses that are endeavoring to improve confirmation base for making methods of insight with the typical objectives. It is agreed with extensive advancement in normal sciences, examination procedures and progress.

Frederickson (2016) communicated that it is required to ensure most vital standard that considers basic to the open related with the business. Besides, being competent to ensure commitments and need to perform in likeness staying aware of good issues of dependability, objectivity, and trustworthiness in the affiliation. It is in like manner fundamental to ensure direct of the people that pursues the clear open toxic capable ethics. In addition, it is required to focus on avoiding and beating the challenges looked due to budgetary distortion, charge shirking, and hopeless conditions and clarifying all things considered good issues.

Protection of the relationship from consequence of good issues associates with the strategy of shirking, checking similarly as responding in the midst of abhorrence is considered as the most goal. In this edge, clear explanation of ethics ought to be acted. It is in like manner central to focus on step by step review similarly as watching the technique in order to ensure consistence. Finally, the non-advantage affiliations need an effective course of action to inquire about, respond and reviewing the ethical oversights, which may occur in the affiliation.


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