Ethical standards are better
at nonprofits, but they are slipping

A study just released by the Ethics Resource Center, the 2007 National Nonprofit Ethics Survey, is the last in a series of three reports focusing on the ethics of specific sectors: private business, government and nonprofits. Findings indicate that, while nonprofit organizations have the strongest ethics compared to the other sectors, integrity in the nonprofit sector is eroding and misconduct is on the rise – especially financial fraud. 

Click here to download a free copy of the report.  The ERC’s 2007 report is the only national view of ethics within the nonprofit sector, taking into account organizations of all size and focus.  ERC says this spotlight on ethical beliefs and behavior within the nonprofit sector provides insight into the ethics risks these organizations face, the ways in which such ethics risk can be mitigated and a pathway for future change.

According to the ERC, The 2007 survey reveals these findings:

• At present, nonprofit organizations have the strongest ethics, standing over any other sector.
• Nevertheless, integrity in the nonprofit sector is eroding. Misconduct is on the rise – especially financial fraud.
• Governance makes a substantial difference, positively or negatively.
• Size makes a difference when it comes to misconduct. Mid-sized organizations are at greatest risk.
• Well-implemented programs have made the difference where misconduct has remained low in the nonprofit sector.
• A near-perfect result can be achieved. A well-implemented program and a strong ethical culture essentially eliminate misconduct and increase reporting to 100 percent.