Forum - June/July 2009

EXPERTEYE

Ethics Matter in
Association Management

BY RUPERT M. EVANS, MPA, DHA, FACHE

Rupert M. Evans, MPA, DHA, FACHE, is immediate past president and CEO of AHA’s Institute for Diversity in Health Management; associate director, Master of Health Administration Program, Governors State University; and owner of Trepur LLC consulting.

seeking new avenues to make their organizations relevant to their members and exploring new ways to increase non-dues revenue in order to keep their associations financially solvent during these economic conditions.

adequately. But the study also reported that a few believe government regulation contributed to an atmosphere conducive to violation. Nearly all believed that reductions in government rules and regulations were needed.

On March 13, 2009, Bernard Madoff pleaded guilty to orchestrating the largest fraud in Wall Street history. He said he was “deeply sorry and ashamed” for his crimes, before being escorted out of a packed Manhattan courtroom in handcuffs and leaving many to ask how this could have happened.

Madoff swindled billions of dollars from his unsuspecting clients. At the same time, investors large and small are facing great economic uncertainty and a global financial crisis. During times like these, strong ethical behavior becomes even more of a necessity.

So where should people turn for ethical guidance? If your answer is, “their professional association,” you may be right — and let’s hope you are. The best place for association professionals to find practical discussion of their ethical dilemmas ought to be in a forum of their peers. In response to that demand, associations are increasingly offering resources and programs on ethics as one of their most important member benefits.

Associations also are looking inward at their own organizations and examining their ethical codes due to changes in the way association services are financed and services delivered. Associations are always

WHERE TO BEGIN

Ethical behavior begins with identifying the points of resistance to ethics. It’s a big mistake to assume an organization can operate ethically or maintain successful performance, but not both. Rushworth Kidder, in his 2002 Association Management article, “Guiding Responsible Discussion About Ethics,” includes these points: 1. Acting ethically builds trust.

2. The public cares about ethics.

3. Ethical leadership forestalls oppressive regulation.

4. Effective partnerships depend on shared ethical values.

A 2008 Justice Department study interviewed 64 retired middle management executives employed by 51 Fortune 500 corporations. This group provides data to analyze factors producing unethical behavior within a corporation, such as top management’s role, employee cooperation with government in dealing with violations, and the role of competitive practices. The study found that middle managers felt corporate pressures to show profits and keep costs in line. In turn, they perceived this pressure as extensive and severe and said it resulted in compromise of personal standards. They did not feel that external factors, such as a poor financial situation and unfair competitive practices, were important contributors to illegal behavior. Approximately 57 percent believed government regulation is needed and industries are not able to police themselves

It’s a big mistake to assume an organization
can operate ethically or maintain successful
performance, but not both.

LOOKING AHEAD

Associations will continue to see a transformation in how they are financed and how services are delivered. The new business environment will become even more regulated and the business of association management will require transformational leadership and increased stewardship.

Managing large national associations and even very small local organizations requires uncompromising ethical leadership. The leaders of the future must be goal-oriented, have clearly defined values and possess these crucial traits:

• Honesty

• Integrity

• Respect

• Fairness • Good Faith

Responsible ethical behavior inevitably puts self-esteem and professional relationships at risk. In ethical decision-making, the subtle manipulation and quiet deception so common in many business practices degrade the very people they are meant to serve. Many employees are very loyal to their organizations, but loyalty cannot be singular when reality is plural. In our pluralistic society, we must have an ethical framework that guides our action; boundaries are both necessary and treacherous.

Ethics do matter in association management and in all business practices. In the last decade, we have witnessed devastating consequences of breaches in the moral and ethical codes of our great society. We must ensure that codes of ethical conduct are reviewed by all employees and ethics stressed at all gatherings of our various associations and societies.