Board Case Study Example

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Board Case Study Nonprofits make-up a large part of our economy and operate with the intent on improving our society. They are governed by a board of directors, as stated by Edwards and Yankey (2006, p. 347), "The governing board carries out a range of vital functions…entrusted by the community to act as fiduciaries and to guide their organizations with care, skill, and integrity." There are numerous nonprofits that operate across the country and every board of directors has a responsibility to create a sound structure to include policies and procedures that support good governance. There are several problems indicated with the operation of the Board Case Study. It appears that the board is inactive, there are no checks and balances or …show more content…

The code of ethics is a set of principles used to help make decisions, govern the behavior of board members, staff, and volunteers. In developing a code of ethics there are many things to consider such as the allocation of funding with the inclusion of an ethics audit. The ethics audit as stated by Webster 's College Dictionary (1991) "entails an official examination and verification of records and other organizational practices" (Reamer, 2002). Reamer (2002) also states, "A comprehensive ethics audit should assess the extent to which social workers and agencies have procedures in place to identify ethics-related risks and prevent ethics complaints and ethics-related litigation." This will look at the organization as a whole to include programming, personnel practices, confidentiality, resources used, conflicts of interest, and fundraising. A board 's primary goal is to ensure best practices are used, which translates to strengthening the community and working for the common good (National Council of Nonprofits, 2009). Due to the many responsibilities of the board, many form subcommittees to include "financial planning, nominating, evaluating the executive, fundraising, personnel, and services" (Edwards & Yankey, 2006, p. 348). This allows for checks and balances for proper …show more content…

If a CEO has taken, it upon him/her self to increase salaries without approval from the board, there should be a course of action outlined in the agency 's code of ethics to include a review by the ethical subcommittee. Having a CEO who knowingly misrepresents the information regarding the agency to the board, opens up the possibility of the mismanagement of funding received to provide services to the population served. Mismanagement of funds has the potential to ruin a nonprofit and hinder future funding. A nonprofits financial transparency is imperative for continued funding and prevents the media from questioning the agency 's ethics and obligation to the community to provide

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