Board oversight of community benefit constitutes an ethical imperative for nonprofit health care organizations. By "ethical imperative" we mean a health care organization's duty to fulfill value-based obligations that transcend compliance requirements in order to be consistent with its basic sense of purpose. We consider three points here: the existence of a distinctively ethical imperative for board oversight, the fact that the imperative is organizational in nature, and practical ways to fulfill its obligations. To explain the meaning of ethical imperative, (...) offer analytical clarification, and provide evidence-based guidelines we adopt an organizational ethics paradigm. Because community benefit for tax-exempt .. (shrink)

Media reporting of recent business scandals, ranging from systemic accounting fraud to individual executive greed, has shed new light on the urgent need for organizational ethics in corporate America. The essay argues that organizational ethics can foster virtuous organizations by developing their sense of stewardship and integrity. This approach can inspire the ethical decision-making processes and standards of conduct for personnel throughout the organization. Another crucial role for organizational ethics is to regain lost trust and to recover the confidence of (...) our communities, whether we are discussing the business community or the health care community. Corporate America and organizations in health care need to win back the respect of skeptical customers, disheartened patients, and distrusting communities. But this task can be accomplished properly only when organizations and their business practices have a renewed commitment to ethics. The essay discusses how organizational ethics can permeate the entire organization in order to instill trust and confidence among its constituencies. Although the focus of the essay is upon the role of organizational ethics in health care, the argument also applies to the renewal of business practices in corporations across the nation. (shrink)