The recent partygate scandals really help to illuminate this critical point around ethics. Whether the people involved knowingly broke the rules or not, it is quite likely that the fact no one was looking allowed the people involved to feel they could do something that they most likely would not have done in an environment with people looking in – they thought they might get away with it. Of particular note of course is the outcry when people did find out what had happened. I hope they would have acted very differently if the world had been watching!
As a trustee for a charity, one will always need to be accountable for actions taken and also to demonstrate absolute integrity. If you make a mistake, own it, be honest and upfront and try to make it right.
For those new to the role, where can ethics be “learned” from? One key starting point must be the induction from the board. If the charity you are now a trustee of has a good ethical leadership, it will be quite clear what is considered to be ethical behaviour. An easy way to think about this, is most Board meetings will have a standing agenda item “any conflicts”. Think about any items which might be a bit muddy, make sure you record any conflicts and you will be fine……. And in that single “M” word, lies the heart of ethical issues! What IS a breech??
So what does a breach of ethics look like? Initially, the first thing that comes to mind is a trustee running off with assets of the charity or being found to have syphoned cash off over the last 20 years. In practice, few ethical breeches are as blatant as this. The acts committed that are found to be ethical breeches are very often the muddy areas asking whether the trustees did in fact have the best interest of the charity in their decision making process – life is seldom black and white, usually it is the grey areas that cause the issues!
There is a broad range of topics available on the Charity Commission website which provide some good short guides as to what is expected. These are very easy to read and will set a mindset which will help to aid you to act in an ethical way.
One really interesting piece that was published by the NCVO in 2019 is their charity ethical principles document. What is really helpful about this guide is it sets out key principles for all involved in a charity, not just putting the onus on one group of people. It also sets out what role you as a trustee have to ensure the ethics are upheld. It is written in clear language and makes it clear that all are responsible for upholding ethics, and that an ethical charity will not criticize you if you ask for clarification on any matter you are unsure of. Indeed, the best way to ensure that ethics are upheld is to engage with your fellow board and charity workers. What would they think given the situation you may face? As ever, your nearest UHY charity expert will only be too happy to act as a sounding board for any issues you may face.
Finally, why does this really matter? Apart from the obvious ramifications of losing jobs and potential criminal action, acting in a way that might be unethical can cause untold damage to reputations of a charity and that has a real impact on the beneficiaries of the charity. Whilst the ultimate sanction of a forced close down is not common, bad news stories could create real problems obtaining funding and support.
For a very real reminder of how important it is to get this stuff right, look no further than Captain Tom.
The next step
Please contact your local UHY charity specialist to discuss how you can champion ethical practices in your charity.
