5) defined ethics as “the systematic inquiry into man’s moral behavior with the purpose of discovering the rules that ought to govern human action and the goods that are worth seeking in human life”. These ethical standards governing the existence of human life also encompass the realm of business entities with pertinent issues affecting the Board of Directors and senior leaders of diverse organizations. It is in this regard that this essay is written with the objective of identifying ethical challenges faced by members of the Board of Directors and senior leaders in organizations through a review of two (2) contemporary articles on the subject. A description of how the issues were handled and an analysis in terms of effectiveness in handling the situation given the scenario at hand would be proffered.
A feature article published in the Associations Now – Volunteer Leadership Issue entitled Ethical Tips for Volunteer Leaders written by Frank Navran discussed challenging ethical issues on governance by board members in volunteer organizations. It clarified theoretical frameworks encompassing culture, in general, focusing on ethical culture, in detail. Navran averred that “Boards of even the smallest association are being held to standards of accountability for ethical culture that originated in publicly traded companies; their members and the public appear to expect that.” (2006, par. 16) The author presented relevant elements and measures of how board members contribute to an ethical culture through a standardized ethical system properly set in the organization, an ethics oversight, and an independent assessment of ethical issues. The article stipulated that “the U.S. Federal Sentencing Guidelines for Organizations (FSGO) have detailed and incentivized the establishment of effective systems to prevent and detect legal violations. These standards have become a template for organizational ethics systems for organizations of every size and sector. At a