Let’s talk about moral capital and recruiting your board
As I was getting ready to write this post about the need for more moral capital on the board, the higher education scandal broke in the US. Sadly, thirty-eight people were taken into custody as of noon on March 12th in this bribery scheme.
What was the scandal? Wealthy and prominent parents from business and the media bribed administrators, coaches, test proctors and others to grease their kids into elite private colleges and universities. What, their large direct donations weren’t already enough?
Shamefully, this was done through Key Worldwide Foundation (KWF). KWF was 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 served as President and CEO along with a secretary and one other director. (Their treasurer is not a director.)
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.
We can’t say it enough: you need a moral compass.
Every organization has to have a philanthropic or moral compass, most assuredly within the board. Yes, you have well-crafted bylaws, job descriptions, and director expectations. Yes, you reference ethics, the rule of law and conflict of interest. Really, all is crap if your directors or staff lack a moral core to do what is right.
People as capital
Yes, talking about people as capital seems contrary to discussing a moral guiding light.
Remember, I’ve previously pitched Professor Elizabeth Castillo and her typology of capitals. Using her list, you can begin valuing people for more than their financial capital when you consider what you need in the way of the human capital you recruit to your board.
For example, wealthy donors and connectors to other money aren’t the only desireables for your board. Open your doors to other people with assets that strengthen the board – e.g. intellectual, social, political, and cultural capital. And yes, moral capital.
Moral capital isn’t someone who can thread the needle of what is or isn’t ethical or legal. I want steadfast voices defending doing what is right. I want directors with justice in their hearts. DIrectors who are courageous enough to call out when something is bad, smells bad or just doesn’t feel right.
Our sector needs to stands strong for honesty, truth and transparency. We can’t afford to risk the public’s trust. Unfortunately, trust has been on a downward slide for many years.
How much moral capital sits on your board?