GOOD PRACTICE Codes of Ethics

AndStandards of Excellence

Recommendations at the 18th Annual Johns Hopkins International Fellows in Philanthropy Conference, Bucharest,

Romania, July 3-6, 2006

1. THE PROCESS

Broad consultation

Addressed all questions

Practical application and suggestions

Some thoughts on Governance

2. WHY IS IT VALUABLE?

Adds value in many ways

Creates linkages across sector

Creates better visibility

Brings functioning to a higher level

Contributes to sustainability

2. BUT WHAT IS THE VALUE?

Provides recognition for members – internally and externally

Increases positive profile and image Provides a solid base, deeper than laws

alone Increases prospects of receiving support Provides framework for accountability and

transparency

2. A NOTE OF CAUTION

Process must be adjusted for:

History of the sector Work already done Stage of maturity of sector Stage of maturity of individual NGOs The sector’s readiness for collective

responsibility

3. THE BARRIERS

CREATING THE CODE ITSELF: The process– gaining consensus on one

code Establishing a sense of urgency and

purpose Resources Ensuring process is deep and wide Having the right people involved

3. THE BARRIERS

CREATING THE CODE ITSELF Cont… Differences in culture in organisations Nobility of mission Adequate consultation Fear of being controlled Belief in the value

3. THE BARRIERS

CREATING AND MAINTAINING LEGITIMACY

Keeping it as a living document Ensuring public awareness Recognition of it as an authoritative

product Monitoring compliance Sanctions for non-compliance

4. OVERCOMING OBSTACLES

Create a sense of URGENCY, NEED and INCENTIVES by

Marketing the tool to distinguish members who comply

Working with the media to create interest in good stories

Creating a system of “Certification” and associated Seal of Approval

4. OVERCOMING OBSTACLES

Create a sense of URGENCY, NEED and INCENTIVES cont…

Attracting, and building credibility with, funders

Bringing all organisations to a higher level of functioning

Demonstrating quality of organisation Avoiding government scrutiny and imposition

of government codes

4. OVERCOMING OBSTACLES

ALSO Bring the right people together

☺NGO Sector

☺Donors

☺Government

☺Specialists

☺People who have already done this work

4. OVERCOMING OBSTACLES

ALSO Get commitment at highest level of:

☺Government

☺Legal people

☺Financial people

☺Experts in organisational development

☺Consumer organisations

4. OVERCOMING OBSTACLES

☺PR, Media and Communications

☺Internal and external funders

☺Academics

☺Networkers

☺Facilitators

5. NEXT STEPS

TO DEVELOP THE CODE Explore work already done Bring people together Explore avenues for funding to support process Identify initiating organisations to start process Assemble the code of conduct Deliver training in sector Develop capacity of sector to undertake the

necessary work

5. NEXT STEPS

TO IMPLEMENT THE CODE Establish system of certification – to show

whether and how standards are being reached

Monitor adherence – to ensure the code remains a thing of value

Consider an Awards system – to reward the positive practice of NGOs and create legitimacy

5. NEXT STEPS

TO IMPLEMENT THE CODE cont… Use internet

– list organisations who comply

– consider “blacklisting” organisations who don’t comply

– highlight best practice

– publicise awards

6. GOVERNANCE

One component of a Code of Ethics An essential component Is fundamental for establishing legitimacy Many organisations already have these

practices in place Provides formalised system of

accountability

6. GOVERNANCE

Some features would be, but not limited to: A Board of Directors

• Numbers

• Attendance

• Independence

• Conflicts of interest

• Oversight of executives

• Responsibilities and duties

• Remuneration

6. GOVERNANCE

Some features would be, but not limited to: Supervision of performance of organisation Evaluation of Board effectiveness Accountability and reporting mechanisms Financial management Transparency of decision making and

practice Measurement of quality

6. GOVERNANCE

Organisational directions including

– purpose

– vision

– mission

– values

– goals

FINALLY

A CODE OF CONDUCT: Underpins legitimacy Builds trust Authorises emerging organisations

“Recognise the complexity of the task, but keep it simple”

☺