A nonprofit code of conduct encourages uniform behavior and ethical decision-making.
A written code of conduct for nonprofit board members, staff and volunteers encourages ethical behavior and helps guide uniform decision-making. A code of conduct can be part of the organization's code of ethics, specifying which behaviors are and are not acceptable when acting on behalf of the organization. The code of ethics is an IRS requirement for tax-exempt organizations as of the 2009 tax year.
Identification
The nonprofit code of conduct is a written policy that sets out the expectations of proper behavior for people affiliated with the nonprofit. The code of conduct should encourage ethical behavior, accountability and transparency while discouraging or prohibiting unethical behavior, discrimination, breaches of confidentiality, and other undesirable, dangerous, or illegal behavior. Each board and staff member should read and sign the code of conduct each year. New staff and volunteers should be asked to read and sign the code of conduct when they begin work and at least once per year after.
Function
A code of conduct serves two main functions. First, it clearly informs the staff, board and volunteers at a nonprofit what is expected of them. It lays the "ground rules" of proper behavior and alerts the staff that certain behaviors are not tolerated. The code of conduct creates a company culture of respect and accountability. Second, the code of conduct protects the nonprofit. If a board or staff member or a volunteer violates the code of conduct, he may be terminated with the understanding that he knew, from the code of conduct, that his behavior was improper.
Features
According to the Complete Guide to Ethics Management for Nonprofits, a nonprofit code of conduct will typically include, at a minimum, rules covering the following issues: dress code, illegal drug use, laws and regulations, confidentiality, conflicts of interest, discrimination, use of the nonprofit's property, and report illegal, unethical or questionable behavior. Other nonprofit policies, such as the document retention policy and the whistleblower policy, will provide further guidelines.
Considerations
When creating a nonprofit code of conduct, keep in mind that the board, staff and volunteers will be more likely to follow a code of conduct they have helped to create. First, identify key values or behaviors the organization expects from its employees. You may wish to have key staff submit suggestions. Next, describe each behavior or value clearly in the code of conduct. Include an explanation that each employee is expected to adhere to the code and a clear statement of the consequences for failing to do so. Third, have key staff review the code and make suggestions. Revise as needed. Finally, distribute the new code of conduct. Collect a signed copy from each employee to demonstrate that each employee has read the new code of conduct and agrees to follow it.
Warning
No matter how careful or thorough you are in compiling the code of conduct, it is impossible to foresee every situation that might arise. Therefore, phrase each element of the code of conduct as broadly as possible. Create procedures for reviewing possible violations that do not clearly fall under the code.
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