Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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On With Living (OWL) is a nonprofit organization dedicated to improving the physical and mental health of individuals age sixty-five and older. It is a local chapter of a national organization, the OWL Association, which had been in existence for nearly thirty years. Both the local chapter and the national organizational offer programs and services to help seniors stay healthy and fund research to find ways to prevent, treat, and cure diseases that affect people over sixty-five, such as Alzheimer’s disease, diabetes, and heart disease.
Each local chapter is obligated to adhere to the positions of the national organization, and any modification or rejection of the national position is prohibited according to the statement of relationship signed by both parties. Any violation of this relationship agreement would result in disaffiliation from the national organization, which local chapters attempt to avoid at all costs.
One position statement of the national organization took a firm position on stem cell research: In keeping with our mission, we oppose any restriction or limitation on human stem cell research, provided that appropriate scientific review and ethical and oversight guidelines are in place. Without differentiating between embryonic and adult stem cell research, the position further asserted that the federal government was responsible for defining and monitoring scientific review and ethical and oversight guidelines.
Cora Shipman is the executive director of a local OWL chapter. Her responsibilities are typical for an executive director of a nonprofit organization—strategic planning, financial oversight, selecting and managing staff, fundraising, community relations, and board development. Her work with the organization’s board of directors included identifying potential new board members. Upon their appointment to the board, Shipman would orient them to the organization and provide a general overview of the many tasks and responsibilities assumed by board members.
Cora was excited when she learned that Andres Vasquez wanted to serve on the chapter’s board of directors. Andres worked as a banker and had the financial acumen that she sought on the board. He was viewed as an up-and-coming leader in the community and was passionate about accomplishing the mission of the organization. Also, he taught a public relations class at a local university and had access to students who could serve as interns or volunteers in supporting the organization’s programs. His previous volunteer experience with the chapter made him a qualified candidate for the board of directors.
Andres was quickly nominated and elected to the board of directors. Within six months, he was asked to assume the role of vice president, putting him in line to be the board’s next president. Although he was new to the board, things were going well and he has provided many valuable services to the organization. His energy and passion were contagious, and other board members became more involved.
OWL traditionally held several fundraising walks each spring, including one in Andres’s community. Andres volunteered to serve on the event planning committee and assist in securing corporate sponsorships. He volunteered to visit a local insurance company and solicit sponsorship for the walk—a solicitation he felt comfortable making because his neighbor, John McNamara, served on the company’s charitable giving committee.
Andres and John met over lunch and enjoyed the pleasantries of catching up with each other. When the subject switched to Andres’s involvement with OWL and the upcoming walk, John was surprised to learn of Andres’s involvement.
John said, How can you volunteer for an organization that supports stem cell research?
Jokingly, he added, I thought all good Christian men like you believe life begins with conception. Aren’t those stem cells they use for research a human life? Are you comfortable in supporting an organization that destroys those cells for research purposes? And isn’t it true that stem cells come from aborted fetuses?
Andres was shocked and embarrassed and felt ill prepared to respond to John’s comments. During his orientation, he had not inquired about the organization’s position on stem cell research, nor had Cora mentioned it. In fact, the issue of stem cell research had not crossed his mind.
After ending the lunch hurriedly, he rushed to his office and called Cora. He told her about his conversation with his neighbor and his embarrassment in not being able to provide an informed and definitive response. Cora expressed concern for his embarrassment and provided the clarification that he sought. She once more stated the position of OWL and reminded him that the chapter was bound to the positions of the national office. She further explained that OWL had not actually funded research involving stem cells. She also explained that the policy was in support of its mission and that it allowed the organization to keep all options open for research, both now and in the future. She assured him that no organization obtained stem cells from aborted fetuses. At least for the short term, Andres was satisfied with her response.
However, Andres struggled with this new knowledge over the next week. His personal belief was that life indeed began at the moment of conception. According to his beliefs, stem cells were not simply a collection of cells but a living human being, and to destroy those cells for the purpose of research—even if that research was designed to save lives—was immoral. While he was proud of his association with OWL, he felt like a hypocrite. His personal beliefs were incongruent with the position of an organization he publicly supported and on whose board he gave direction.
The situation intensified over the weekend when a letter to the editor about OWL appeared in the local newspaper. Written by the president of a right-to-life organization, the letter called for a boycott of OWL’s upcoming walk. It cited the organization’s position on stem cell research and called on the public to stop contributing to OWL and other organizations that approved of this kind of research. After Andres attended church on Sunday, several members of the congregation approached him and asked for his reactions to the letter to the editor.
On Monday morning, Andres called Cora and discussed his beliefs, but also assured her of his commitment to the organization. He proposed a compromise—a solution that he believed would reconcile the conflict between his personal beliefs and the organizational position. He proposed that the OWL board of directors pass a resolution to reject the national position and develop its own position to oppose stem cell research. He envisioned using his public relations knowledge to make this rejection a newsworthy event. He acknowledged that the local chapter would be viewed as a maverick in the community by standing up to the more powerful national organization. Andres was also convinced that the maverick position would raise public awareness about the organization and actually increase participation in the upcoming walk.
Cora knew that rejecting a national position statement was both futile and foolhardy and would result in disaffiliation from the national office. It would also mean a loss of valuable national and local support and access to important resources—a price she was not willing to pay because of one board member’s personal beliefs. She believed that Andres’s opposition to stem cell research was a minority view and that, in reality, most people supported this kind of research, which might lead to cures for devastating diseases. She looked to other board members for counsel and learned that most of them rejected Andres’s position and proposal. The board cautioned Cora about the consequences of aligning the organization’s positions with those of a particular religious group or political party.
Andres soon realized that his compromise would not be supported by the executive director and his fellow board members and withdrew the proposal. Ultimately, he realized the impossibility of reconciling his personal beliefs with the organization’s position on stem cell research. He called Cora and resigned from the board of directors. Cora accepted the resignation with mixed feelings. OWL had lost one of its most vocal advocates and promising leaders. Yet she was relieved that her organization would avoid a confrontation with its national office and the serious consequences of disaffiliation. Similarly, she was relieved that the organization’s limited human and financial resources could be devoted to serving its mission rather than engaging in a conflict that would result in a no-win outcome.
1. What criteria should a nonprofit organization utilize in the identification, selection, and appointment of members of the board of directors? Explain.
2. In looking at your chosen local and national nonprofits, what are their requirements for membership on their board of directors, trustees, or governors?
3. In OWL's applications for employment, would you recommend that Cora have the human resources department spell out OWL's position on stem cell research on the form? Would opposition to stem cell research be sufficient for disqualification for a position in the organization? Explain.
4. Would it be advisable for Cora to write a rebuttal to the letter to the editor and clarify OWL's position on stem cell research, as well as on attendant issues related to euthanasia and death and dying? If so, please provide an example of what you would write. Alternatively, delineate other actions you would deem appropriate for the executive director to take.
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