Ferland Milestone Four

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School

Southern New Hampshire University *

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445

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Management

Date

Apr 3, 2024

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docx

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5

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1 5-2 Final Project Milestone 4: Personnel Issues Kylie Ferland Southern New Hampshire University OL-445-H3935 Dr. Tomecca Williams February 5, 2024
2 Emerald City Community Economic Development Corporation (ECCED) Board Memo To: Pauline B. Blank, Board President From: Kylie Ferland, Executive Director Subject: Concerns of Workplace Exploitation Date: February 5, 2024 Dear Ms. Blank, After having looked over personnel information for ECCED, I feel the need to raise the concerns that I have in regard to Been Scrooge and the fact that he is serving as a board member in the capacity of Treasurer but he is also being paid as the Finance Manager. Mr. Scrooge took over for Mr. Cratchet in manner that concerns me. According to the Personnel Profiles given to me, He worked with the previous executive director to reposition Mr. Cratchet out at the Finance Director and got the board to recommend him as the replacement. This leads to a personal benefit of a board member which can lead to potential issues down the road. My proposal is that Mr. Scrooge be removed from the Finance Manager position and remain as the Board Treasurer. I am unaware that he has recused himself from any financial conversations that affect him, such as employee benefits and compensation. This means that he is actively fighting for compensation and benefits for himself. Mr. Scrooge currently receives a salary of $50,000 a year for his position as the Finance Manager. He does also make a financial contribution annually as a board member. Board Members should always act with integrity, kindness, and in the best interest of ECCED. The actions of Mr. Scrooge, while helped the organization in many ways, was not in line with these core values. According to the North Carolina Board of Directors for Nonprofits, employees are allowed to serve on the Board of
3 Directors, but cannot vote on anything. This is a conflict of interest (Form123, 2024). However, in the case of Mr. Scrooge he was directly involved in the firing of Mr. Cratchet. The Board of Directors is involved in the hiring and firing of employees and that means that Mr. Scrooge was involved in that. The previous Executive Director was influenced by a board member and did not make the decision fully on the basis of ability. The other issue is that board members are usually only receiving compensation in the forms of reimbursement when it comes to board member meetings and retreats. They are not compensated for their time outside of that (Business Law Section of the North Carolina Bar Association & North Carolina Center for Nonprofits, 2003). Mr. Scrooge is compensated for his work as the Finance Manager, but is also making many of those decisions with his position on the board as Treasurer in mind. While there is no mention of this, there is a great change that he is working on Treasurer stuff while in his capacity as Finance Manager. So he would be getting compensation as the Treasurer as his is getting paid for that time. When evaluating the personnel issue, I looked at the potential legal issues that could arise with us being potentially in violation of the 501(c)3 status. While there are no laws being violated, there needed to be research done as to the ethical violations. It is known that many nonprofits operate their boards in a volunteer capacity. There is also the fact that some board members are brought on as a third-party source. This means that having someone who is an employee, who is also a board member, and an officer of the board can endanger the integrity of board and it can create many potential conflicts of interest (Hardt, 2022). Many board members serving in a double-duty capacity are recommended to be removed from either their board position or as an employee. Mr. Scrooge has been a valuable member of the board since he joined. He has been integral in many things that the board has worked on and even done things to
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