Let’s talk about moral capital and recruiting your board
Just as I was getting ready to write this post about the need for more moral capital on your board, the higher education scandal broke in the US. Thirty-eight people taken into custody as of noon on March 12th in this bribery scheme.
It turns out that very wealthy folks from business and the media bribed administrators, coaches, test proctors and others to grease their kids into elite private colleges and universities. I guess their large direct donations weren’t enough?
Shamefully, this was done through Key Worldwide Foundation (KWF), a 501c3 public charity led by William “Rick” Singer who is pleading guilty to the charges against him.
According to its 2016 Form 990, KWF has just three directors: Singer as President and CEO, a Secretary, one other person. (The treasurer is not a director.) And, not only were the donors to KWF offering bribes for college placements, they were likely getting tax deductions for making those bribes through the nonprofit.
You need a philanthropic or moral compass in your organization — and most assuredly within the board. All your well-crafted bylaws, job descriptions, and list of expectations with references to ethics, the rule of law and conflict of interest won’t make up for directors or staff who lack a moral guiding light to do what is right.
People as capital
Talking about people as capital seems to be contrary to discussing your moral guiding light.
But I’ve previously pitched Professor Elizabeth Castillo and her typology of capitals. Using her list, you can begin valuing people beyond their own financial capital when you consider what you need in the way of the human capital you recruit to your board. This moves you beyond just recruiting directors who are wealthy donors and connectors to other money. It lets you value other assets that strengthen the board – e.g. intellectual, social, political, and cultural capital. And yes, moral capital.
And I don’t mean someone who can thread their way through the needle of what might or might not be ethical or legal. I want voices that are steadfast in defense of doing things the right way, with justice in their hearts, courageous enough to call out when something is bad, smells bad or just doesn’t feel right.
Unless our sector stands strong for honesty, truth and transparency, we risk the public’s trust — which has been on a downward slide for many years.
How much moral capital sits on your board?