Sample Ethics Case—Donor Privacy: Privacy and Conflict of Interest

Background

GreenFuture is a nonprofit organization dedicated to environmental conservation and sustainable development. It relies heavily on fundraising from private donors, corporate sponsorships, and government grants to support its initiatives. GreenFuture has a robust donor database containing sensitive information, including donor names, contact details, donation amounts, and personal interests.

Emma Clark, the Chief Development Officer at GreenFuture, was tasked with leading a major fundraising campaign to support a new project aimed at reforesting urban areas. The campaign's success was critical, as it would significantly expand GreenFuture's impact and reach.

Simultaneously, Emma had recently started a consulting firm, Eco Fund, which provided fundraising strategy services to various nonprofits, including GreenFuture's competitors. Eco Fund was struggling to gain traction, and Emma saw an opportunity to leverage her position at GreenFuture to benefit her firm.

Ethical Dilemma:

To bolster EcoFund's client base, Emma decided to use GreenFuture's donor database to identify potential clients for her firm. She began reaching out to these donors, offering EcoFund's services to enhance their own fundraising efforts. This unauthorized use of donor information was done without informing GreenFuture or obtaining consent from the donors.

Who's involved:

• Emma C., Chief Development Officer at GreenFuture
• Emma C., Consultant
• Board of Directors, GreenFuture
• Eco Fund, Emma’s consulting company
• GreenFuture donors
• Eco Fund clients
• Mark D., Executive Director, GreenFuture

Considerations:

A donor, surprised by the unsolicited contact from Eco Fund, reported the incident to GreenFuture's Executive Director, Mark Davis. An internal investigation was launched, revealing Emma's misuse of the donor database and her undisclosed ownership of EcoFund.

Disciplinary Measures: Emma was immediately terminated from her position at GreenFuture. The organization reported the incident to the relevant authorities, as the misuse of donor information could have legal ramifications.

Policy Revisions: GreenFuture strengthened its conflict-of-interest policies, requiring employees to disclose any external business activities. The organization also enhanced its data privacy protocols, ensuring that donor information was accessed and used only for its intended purpose.

Rebuilding Trust: The breach of trust necessitated a comprehensive effort to reassure donors of GreenFuture's commitment to protecting their privacy. The organization issued a public apology and outlined the steps it was taking to prevent future incidents.

What are some possible ethical issues; who else might be impacted?

• Privacy Concerns: Emma had access to GreenFuture's extensive donor database, which included sensitive personal information. Using this data for her own firm without donor consent would constitute a severe breach of privacy and trust.
• Conflict of Interest: Emma's dual role as the Chief Development Officer at GreenFuture and the owner of Eco Fund created a significant conflict of interest. Her responsibility to GreenFuture conflicted with her personal interest in growing her consulting business.

What are some possible considerations or solutions?

• Organization policy on self-dealing
• Donor privacy protection

Related Ethics Standards:

1. Not engage in activities that harm the members clients, organizations, or profession or knowingly brings the profession into disrepute.

19. Protect from disclosure confidential information to unauthorized parties as defined by an organization’s policies and procedures.