The Nkf Scandal

Numerous accusations on the mismanagements of volunteers and donated funds didn't end with 9/11, but escalated following Hurricane’s Katrina and Rita. When the overwhelming numbers of donations specifically received for the relief efforts of 9/11, the executives made the wrong choice by going against donator’s wishes of how to use those funds. Also, the ARC didn’t update their donation system and was once again bogged down by the overpowering donations that poured in for Hurricane’s Katrina and Rita. On top of all that the ARC failed to get a grip on the financial disasters at its local chapters - unscreened volunteers walked away with ATM cards loaded with donated funds and some manager’s padded their own bank accounts with fundraiser donations (Holguin). For an organization that is supposed to help the country in disaster relief, the ARC has added monetary complications as the icing on the cake.

The state agency: The state agency’s reputation could be at stake, although the company were doing unethical practices but they were having a good intention of helping those in need. The state agency could be facing bad publicity against the case. The state agency’s funding is at stake, as the scandal spreads there might be people who does not want to continue the donation. Also, state agency’s ability of distributing funds could be doubt during the process.

A non-governmental organization (NGO) is a non-profit group which can be organized on a local, national, or international level. The NGO I selected is Free the Children. The short form used to identify it is FTC. The purpose of the NGO is to free children from poverty, exploitation, and the notion that they are powerless to effect change. The co-founders are Craig Kielburg and Marc Kielburg. It was founded in Thornhill, Ontario in 1995. The head office is located at 233 Carlton Street Toronto, Ontario M5A2J2, Canada.

Financial reporting practices and ethics have manifested an ocean of literature. This has mainly come from organization theorists that address accounting practices. These theorists and professionals have given fresh accountability measures. Their ideals give this industry the tools needed to survive, grow and prosper. The way an organization prepares and reports its financial information and handles its daily operations is in essence financial practices, and in the way it accomplishes this reveals their ethical standards to which they adhere to. This paper will discuss the financial practices, ethical standards, and

• Business Ethics: We knew this problem since October, but tried to hide it with the hope that it will fade away. We will be scrutinized from an ethical perspective.

Not for profit organisations consist of organisations that are not run for the profit or personal gain of individual/s. They are often referred to as charities and provide benefit services to society, often encouraging people to band together by sharing resources to achieve a common goal. Profits can be obtained by these organisations but must applied for the organisations purposes. These organisations include Surf life-saving, Churches, and Salvation Army etc. (Sessoms, 2014).

Ethics are values and principles that individuals use to govern his decisions and activities. Ethics are about moral judgment of an individual about right and wrong. In an organization, code of ethics refers to set of guiding principles and organizations use these principles in their policies, programs, and decisions for business. Within organizations, decisions are taken by groups or individuals and these decisions are influenced by the culture of the company. Decision making and relevance of ethics may also differ for nonprofit and for profit organizations. In contemporary business environment, organizations must have a clear ethical policy and implement it in proper manner. There are many social, legal and economic outcomes that company has to face in case of any ethical dilemma, so there must be a smart strategy to deal with ethical dilemmas. In this paper, we will address the ethics for nonprofit and profits organizations, ethical dilemmas being faced or faced by each of these companies and the outcomes of these ethical dilemmas. Critique of actions of each of these companies will be provided from the point of view of applicable philosophical theories of organizational ethics.

There is a fine line between what is ethically right or wrong with an action committed by an organization. According to Audi, “sometimes ethics is compromised without dishonesty but by deficiencies in clarity or candor or both” (Audi, 2009). Being dishonest and not telling the entire truth are examples of ethical dilemmas.

Professionals in every field are always confronted with some kind of ethical issues. It has however been noted that these ethical issues become high in magnitude and extent when public officials are involved. Due to the involvement of human life, an industry like healthcare holds ethics in highest regard. Even though these healthcare practitioners are highly trained to deal with issues of these kinds, their decisions can sometimes have a lasting impact on their professional and personal lives (Edwards 2009).

The main purpose of commercial organization is to earn money for its owners. The NPOs can’t have owners, as this entity is intended to serve the population, and the law clearly defines that the property (with the concomitant extraction of private benefits) is incompatible with serving the public interest. ## So non-profit organization is the organization that has no profit as the main objective of its activity and doesn’t distribute the profits among the participants. This doesn’t mean that non-profit organizations can’t make money, but the money should go to public purposes for which organization was created. These funds can also be set aside for future programs or transferred to other organizations working for the benefit of society. In this way the NPOs can engage business activities: to produce goods and services, acquire and dispose of securities and property and non-property rights, participate in the economic companies and limited partnerships as an investor.

A nonprofit organization is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Therefore, people involved with NPO's do not make money for themselves. Any money made by an NPO in the U.S. can be viewed on the organization's 990 forms, which are required to be made available to public.

A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial

In the first ethical problem selected, two separate books were kept by personnel in the Adelphia financial management department with the intent of deceiving external auditors; thus leading shareholders and the public to believe that the company was ultimately worth more than it was in actuality. In the second, the Rigas family frivolously dwindled away public money for personal selfish consumption which is clearly a violation of the public’s trust. In the weeks following the unraveling of events and divulgence of information, a number of townspeople and investors were concerned that the family was rather free with shareholder money and further believed corporate money was used to finance public generosity as previously discussed in this paper (Barlaup, Hanne, & Stuart, 2009, p. 10).

Every organization also has a profession responsibility to conduct business honestly and ethically. Our readings reported, “Experts estimated that U.S. companies lose about $600 billion a year from unethical and criminal behavior” Kinicki and Kreitner (2009). The organization could avoid having ethical issues by meeting the

A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.