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NGO - Code of Ethics

An Introduction to Corporate Social Responsibility (CSR)
Corporate social responsibility at work place holds tremendous benefits to leaders and managers, especially in today's new economy where it is critical to understand and manage highly diverse corporate values.

Over the last ten years, increasingly, companies have realised the benefits of implementing CSR policies and practices. This is a direct result of research which, suggest that CSR has a positive impact on business performance and also dramatically reduces any harm to shareholder value.


Pressure from customers, suppliers, employees, communities, investors, activist organisations and other stakeholders has encouraged companies to adopt and expand CSR efforts. As a result, CSR has shown a sharp increase in the recent years...

The NGO sector is no different. Infact the desire to address key issues require commitment to following a set of coduct ethics that are critical in achieving an organisation's mission and objective. Given below is a sample code of ethics document which every individual interested in this sector must be aware of.

Values
As diverse as our activities are, we have common value systems. Based on the desire to advance and improve people's lives, and combat poverty and inequality we are committed to the following fundamental values that underpin the mission and objectives of signatories. We therefore commit ourselves to:

Being responsive to the needs and welfare of the people of South Africa

Accountability and transparency

Participatory democracy

People-centered development

Respecting the rights, culture and dignity of all people within the framework of the Bill of Rights, as enshrined in the South African constitution, and enhancing race and gender equity (adhering to the spirit of "Ubuntu")

Ensuring the organisation remains true to its mission and objectives

Promoting voluntarism, and active volunteer involvement at all levels

Mutual cooperation, collaboration and networking with other agencies around issues of mutual concern

Striving for excellence, including efficient and effective service provision at all levels

Governance
The effectiveness of our work depends on the organisation's governance structures. As professional organisations, we recognise the importance of establishing and maintaining able bodies that will govern the internal functioning of our individual organisations. Committed, experienced and responsible individuals are a critical ingredient for this. To this end we will:

Ensure the organisation has a clear vision, mission, objectives and policies, and adheres to them

Specify the frequency of governance structure's' meetings, quorums, and the role and powers of the governance structure

Develop a policy that prohibits direct or indirect conflict of interest by members of the governance structure, members, employees and volunteers. Ensure that members of the governance structure and staff excuse themselves from decisions where they have, or are perceived to have, a vested interest

In the case of an independent Board or Trust, adopt a policy that discourages members from submitting tenders to the organisation or applying for staffing positions within the organisation. This policy must stipulate that if they desire to do either, they must resign from the governance structure

Ensure that governance structure understands and is responsible for overall policy-making and accepts ultimate responsibility for governance of all aspects of the organisation

Within financial constraints ensure the governance structure reflects the race and gender composition of South African society and the various target constituencies that the NGO works with, with regard to both their composition and their geographic spread

Accountability
Our commitment to promote democracy is enshrined in a culture of participation and complete accountability within our organisations. Transparency in all the work we do is key. To this end we will:

Develop mechanisms to enable all our stakeholders to be involved in planning programmes that directly affect them

Provide opportunities for regular evaluations and updating of programmes that include stakeholder and community input

Hold an Annual General Meeting with full, open and accurate disclosure of relevant information concerning goals, programmes, finances and governance

Hold regular strategic planning sessions to which relevant stakeholders are invited to contribute

Management and Human Resources
Human capacity and skilled leadership are a critical component of the effectiveness of our work. We shall endeavor to follow the best management practices appropriate to the organisations mission, operations and governance structure. To this end we will:

Periodically reassess the organisation's mission, objectives and operations, in the light of changing contexts and constituents' needs

Critically analyse our own practices and our organisational culture and implement those changes necessary o build a culture that encourages creativity, diversity, responsibility and respect that will recognise all cultural groups as equal partners in developing the organisation

Develop clear, well defined written policies and procedures to be followed, which relate to all employees, members and volunteers. Such policies must adhere to the Labour Relations Act and other relevant legislation and must protect the rights of employers, employees, members and volunteers

Establish and maintain disciplinary and grievance procedures with clear lines of authority and accountability

Have clear and transparent procedures for employing new staff, and disengaging existing staff

Have clear staff development policies that seek to empower all staff and volunteers to increase their skills in order to enable them to move to greater levels of responsibility

Develop adequate and acceptable systems of assessing skills, experience and qualifications, levels of responsibility and performance, and remunerate on this basis

Encourage management to adopt interactive leadership styles and an "open door" policy to facilitate good communication between staff and themselves

NGOs need to prioritise the development and maintenance of proper financial management strategies. Our finances shall be managed as to ensure appropriate use of funds and accountability to members and donors. To this end we will:

Comply with generally accepted business accounting and auditing practices, including voucher authorization processes

Set up appropriate financial systems and ensure that we employ qualified persons to administer and manage these systems

Conduct annual audits for incomes exceeding R50 000

Have clear policies on loans and staff advances

Develop a policy regarding the receipt of outside honoraria and/or remuneration in order to avoid "double" or inappropriate payment

Set up mechanisms to ensure that our procedures for purchasing goods and services are free from vested interests of individuals in our organisation and that they are cost effective

Prepare realistic project or organisational budgets, then monitor and adhere to them. In instances where it becomes necessary make changes, the appropriate consultations should be undertaken and any amendments recorded

Formally and publicly charge members for any attempt at fraud, theft or misappropriation

Wherever possible, ensure that the funding base of the organisation is diversified

Keep fund-raising and administration costs to a minimum

Ensure that funds provided are only used for the intended purpose

Ensure that tenders and contracts called for encourage the participation of small and emerging businesses, in particular those owned by previously disadvantaged sectors of our society

Provide clear and transparent accounting to the broader membership and/or constituency of the organisation

Resources
We need systems to manage organisational assets in a sustainable and cost-effective manner. This is a vital tool towards the sector maintaining its original values of being effective and efficient in our work. To this end we will:

Develop internal procedures and control mechanisms and implement these to ensure the proper use of the assets of the organisation and to clearly separate organisational use from private use

Develop and implement mechanisms to monitor the use of staff time

Conduct periodic cost-benefit analysis of projects and review resource allocations in the light of these

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