Ethics Case Bank

Ethics in Public Affairs Case #1: The Suspension of In-Person Congressional Intelligence Briefings Regarding Election Security.

Daniels Fund Ethics Initiative Principles: Trust and Transparency

Just two months prior to the coming presidential elections, Director of National Intelligence (DNI) John Ratcliffe announced a halt to in-person intelligence briefings to Congress regarding election-related security matters. Amid recent intelligence reports that confirm Russia, Iran, and China’s active attempts to influence the coming elections, this development raises questions regarding the effectiveness of Congressional oversight moving forward. While Ratcliffe suggests that substituting written reports in place of in-person briefings is central to an effort to prevent potential leaks, members of the Senate Intelligence Committee raised concerns of the potential for vital information to be withheld moving forward. The capability to ask questions to further explore and test the presented intelligence analyses is critical in lawmakers’ efforts to maintain effective oversight. In the absence of an open dialogue between Congress and the intelligence community, there is debate as to whether there will continue to be an adequate mechanism to ensure transparency and accountability in a moment where providing both to the American public is critical in maintaining confidence in American democratic institutions.

This announcement comes on the tail of the Senate Intelligence Committee completing its’ multi-year, bipartisan investigation of Russian interference in the 2016 Presidential election. Upon the completion of the investigation. The committee recommended that the intelligence community provide both the American public and lawmakers with as much information related to foreign interference as quickly as possible in order to combat misinformation campaigns.

Cyber threats take many forms ranging from bot farms posing as reputable media outlets leveraging social media platforms to spread misinformation, to hacking attempts targeting individuals connected to presidential campaigns. To combat these threats moving forward, it will be of the utmost importance for the intelligence community to play a role in maintaining public confidence in American electoral processes.

Engaging with Daniels Fund Ethics Initiative Principles:

• Transparency – Maintain open and Truthful Communication
• Trust – Build Trust in all Stake Holder Relationships

While a justified degree of secrecy will always be necessary to ensure that the intelligence community can safely disseminate sensitive information to the appropriate governmental stakeholders, a significant degree of transparency is also required to maintain the American public’s trust. Amid a highly charged presidential election, the potential for the perception that the intelligence community is intentionally withholding information regarding election security could alter perceptions towards the legitimacy of American electoral processes.

Ethics in Public Affairs Case #2: A Problematic Donor

The executive director of a small nonprofit organization is considering expansion. The organization offers programs that serve local immigrant and refugee communities. Like many nonprofits, the organization relies heavily on donations from a humble donor base that identifies deeply with the organization’s mission and values. If current fundraising trends continue, she predicts the desired expansion is still a few years out of reach. However, a popular celebrity discovers the organization and is inspired to make a sizable donation. Caught up in the excitement of receiving the donation, the director decides to announce the organizations’ plans to expand and offer programs to a handful of new communities. However, a few weeks after the announcement, the celebrity donor is charged with a serious crime and is arrested. In 2018 the U.S. Treasury Department announced that it would no longer require nonprofit organizations to publicly disclose the names of donors who contribute more than $5,000. The director knows that the nature of the crime would directly offend the organizations’ donor base as well as members of the communities the organization serves. She is the only one who knows the celebrity donor’s identity, and she knows her organizations’ programs will significantly improve the quality of life for members of the newly served communities. However, deep down, keeping the money feels like a betrayal to those she serves.

Engaging with Daniels Fund Ethics Initiative Principles:

• Transparency – Maintain Truthful and Open Communications
• Integrity – Act with Honestly in All Situations
• Trust – Build Trust in All Stakeholder Relationships

Nonprofit administrators regularly face massive pressures to meet their organizations’ fundraising goals. At times, an organizations’ survival may even hinge on the success of such fundraising efforts. However, building trust with stakeholders like donors and those who seek the services an organization offers is of the utmost importance in the nonprofit sector. Even though it is likely that no one would ever find out where the money came from, if it were ever to come to light, the truth could significantly threaten the organizations’ relationships with donors and those they serve. There is also the chance that having the integrity to return the money and delay program expansion while being transparent about why, could inspire further support for the organization moving forward.

Ethics in Public Affairs Case #3: Florida Public School District Conceals COVID-19 Infection Numbers as the Academic Year Begins.

Daniels Fund Ethics Initiative Principles: Trust and Transparency

As the start date of the 2020-21 academic year in Florida grew near, the Orange County Public School district refused to disclose the number of COVID-19 infections recorded in district employees to teachers and parents. The school district attempted to shield itself with a set of privacy laws, the Health Insurance Portability and Accountability Act (HIPAA), and the Family Educational Rights and Privacy Act (FERPA). However, schools are not covered by HIPAA unless they provide healthcare to their students, while FERPA does grant parents control of some of their children’s record privacy. In response, teachers and parents argued correctly that the school district would not be violating any privacy laws by releasing information regarding infection numbers and their location.

After the district again refused to reveal infection numbers and the effected workplaces within the district, the local teacher’s union sued. The judge ruled in favor of the teacher’s union and ordered the district to release the information within 48 hours, which it also failed to accomplish. Once the information became available, stakeholders found that nearly 200 staff members had tested positive despite the district’s newly adopted facility cleaning policies. Even though the information was eventually released, the damage had already been done. As the academic year began, the district found itself amid a crisis of confidence and trust with groups of stakeholders who play crucial roles in ensuring the district’s survival.

Engaging with Daniels Fund Ethics Initiative Principles:

• Transparency – Maintain open and Truthful Communication
• Trust – Build Trust in all Stake Holder Relationships

Rather than maintaining open communication, the leadership of the Orange County Public School District chose to engage in selective disclosure, essentially presenting positive information regarding the district’s newly adopted cleaning policies, while simultaneously concealing information regarding infected district employees. The district leadership fell prey to the significantly divergent interests of a number of key stakeholders. While the Florida state government pushed heavily for students to return to in-person instruction, teachers and parents with pre-existing conditions who are more vulnerable to COVID-19 desired assurances of the effectiveness of safety measures. Additionally, another community of parents advocated for a swift return to in-person instruction due to the demands of their profession or their reliance on access to programs that addressed the developmental needs of their children. Ultimately, the district leadership’s failure to balance these divergent stakeholder pressures, led to a massive crisis of confidence and trust.

Ethics in Public Affairs Case #4 Maintenance Department Saboteur 

Daniels Fund Ethics Initiative Principles: Fairness and Viability

In northern New York, during the year 1973, an individual named Steve Raucci began his career as a laborer within a public school district’s struggling maintenance department. Rossi rose fast, becoming both the director of facilities and grounds and the president of the workers union of which he was a member for a number of years. However, Raucci was not satisfied and sought to make himself even more indispensable to the district. In order to achieve this goal, Raucci resorted to sabotaging the performance of a fellow district employee. Raucci sought to obtain additional responsibilities by obtaining the position of district energy manager; however, the job was already occupied. Raucci proceeded to get this individual fired by intentionally leaving the heat and lights on in all district facilities over the holidays to inhibit the energy saving efforts of his colleague. Additionally, Raucci pretended that the lighting apparatuses for an athletic facility were broken and stuck powered on during the day to further damage his peer’s energy-saving endeavors. These events led to the firing of the former energy manager, as Raucci immediately assumed the vacant position.

Engaging with Daniels Fund Ethics Initiative Principles:

• Fairness – Engage in fair competition and create equitable and just relationships
• Viability – Create long-term value for all relevant stakeholders

The competition for the district energy manager position was anything but fair. Raucci utilized his access and control over district facilities to directly undermine a fellow employee’s performance in efforts to achieve personal advancement. Additionally, through his efforts to sabotage his co-worker, Raucci inflated district energy bills and forced the use of funds that could have been directed to improving or expanding programs that serve stakeholders like students and parents. 

Ethics in Public Affairs Case #5

Daniels Fund Ethics Initiative Principles: Transparency, Fairness, and Viability

In cities across the United States, it is common to see partnerships form between city departments such as the Department of Public Works and nonprofit organizations that aim to raise funds to address department-related issues. While these nonprofits grant citizens and other stakeholders an opportunity to donate and support city works projects they find to be of value, they can also be used to obscure city official’s unethical practices. The former Director of Public Works for the city of San Francisco, California, leveraged the department’s partnership with a nonprofit called The San Francisco Parks Alliance to secure nearly $1 million in donations from contractors that were, in return, awarded over $570 million in city contracts. The former director proceeded to circumvent city purchasing controls by instructing staff members to personally pay for goods and services related to lavish staff appreciation parties, volunteer programs, merchandise, and community support and events. The former director then proceeded to reimburse these purchases with donated funds held in accounts managed by the San Francisco Parks Alliance. Additionally, the former director accepted personal bribes from contractors, including the full construction of his summer home, and a $36,000 Rolex watch. In response to the uncovering of these practices, city legislators introduced a proposition that aimed to create an oversight body to monitor the Department of Public Works’ future activities.

Engaging with Daniels Fund Ethics Initiatives Principles

• Transparency – Maintain open and truthful communications
• Viability – Create long term value for all relevant stakeholders
• Fairness – Engage in fair competition and create equitable and just relationships

The practices of the former director of Public Works essentially created a pay to play system in which contractors with the ability to purchase gifts and make sizable donations to the San Francisco Parks alliance were able to win sizable contracts. This system eliminates the spirit of fair competition in the pursuit of city contracts. While philanthropic organizations offer an important mechanism for public engagement, when it is revealed that they engage in practices that obscure the misuse of donor dollars, the public’s trust will likely deteriorate.

Ethics in Public Affairs Case #6 Children’s Books and Political Agendas

Daniels Fund Ethics Initiative Principles: Integrity, Trust, Rule of Law, and Viability

The former mayor of a prominent city in the United States authored a series of children’s books that promoted exercise and healthy eating habits through the stories of a young girl. A number of nonprofits and foundations ordered books to be delivered to schools and daycares in efforts to combat the ongoing American obesity epidemic. However, rather than fulfilling existing book orders, the author decided instead to resell books that had already been purchased and then used the funds to further their political career as well as purchase and renovate a new house. Nearly $40,000 in checks written to purchase books were cashed and transformed into political donations under other individual’s names ahead of the mayoral election of 2016. Additionally, the author landed a book contract worth $500,000 from a university hospital system that was partially funded by a committee sat on by the author, who was serving as a state senator at the time. In total, prosecutors found that over 125,000 copies of her books were sold, while fewer than 65,000 were printed. In sum, the author collected nearly $770,000 through the illegitimate resale of previously purchased copies.

The former mayor acknowledged her guilt to four of eleven charges brought against her, including conspiracy to commit wire fraud and conspiracy to defraud the government. As she stepped down from her position amid charges of fraud and corruption, the public’s trust shattered. Perhaps most tragically, countless children will remain underserved as funds used to purchase books that will never be delivered could have been used to provide alternate means of support.

Engaging with Daniels Fund Ethics Initiative Principles:

• Integrity – Act with honesty in all situations
• Trust – Build trust in all stakeholder relationships
• Rule of Law – Comply with the spirit and intent of laws and regulations
• Viability – Create long-term value for all relevant stakeholders

The dishonest and illegal practices of this public official not only further eroded the public’s trust in government officials, but also created a lasting negative impact on the communities of children that many organizations attempted to serve. The efforts of both hospital systems, schools, and nonprofit organizations to grant children access to a healthier lifestyle sat indefinitely in limbo as the awaited books never arrived. 

Ethics in Public Affairs Case #7 Nonprofit University Engages in Predatory COVID-19 Advertising

Daniels Fund Ethics Initiative Principles: Transparency and Viability

Amid the COVID-19 pandemic, many students find themselves uncertain about their academic futures. Many students are growing increasingly concerned for their safety and are seeking alternatives to in-person instruction. Additionally, the pandemic has greatly complicated many families’ financial situations leading many to reconsider if it is affordable for their children to continue to pursue their respective degrees. To adjust to this reality, many universities have had to adapt their marketing strategies in order to attempt to maintain enrollment levels. In particular, a nonprofit university, Park University in Chicago Illinois, decided to implement an entirely new program designed to attract students who were previously enrolled at other schools who intended to return to their respective universities in a Post-COVID-19 world, but who were looking for an online alternative in the meantime. The program also offered students the ability to commit financially on a term to term basis rather than to the entire academic year. The advertising for the “Gap Year” program heavily pushed misleading messages regarding the universal transferability of credits obtained by students during their online year of study with Park University. However, in reality, transfer credits must be negotiated on a school to school or even sometimes a program to program basis. Thus, while seeking to capitalize on the current health and financial concerns of students, the university engaged in a highly misleading marketing scheme to lure students to join their newly implemented program. Upon receiving criticism regarding their marketing scheme, Park University rapidly eliminated all misleading messaging regarding credit transferability within a 24-hour period. 

Engaging with Daniels Fund Ethics Initiative Principles

• Transparency – Maintain open and truthful communications
• Viability – Create long-term value for all relevant stakeholders

The crux of the issue here lies in the fact that in the process of attempting to offer an educational program that capitalized on the current financial and safety concerns of students and families across the country, they disseminated misleading information regarding the true potential value of the program itself. Offering false assurances regarding the transferability of academic credits to students who already find themselves in difficult financial situations may, in fact, lead to further financial difficulties moving

Ethics in Public Affairs Case #8 Questionable income increase for Florida nonprofit CEO

Daniels Fund Ethics Initiative Principles: Viability and Trust

In 2003 former governor of Florida Jeb Bush signed legislation that designated the Florida Coalition Against Domestic Violence (FCADV) as the sole recipient of all state funding earmarked for domestic violence programs. Thus, the FCADV became responsible for redistributing the state funding to shelters that serve victims of domestic violence across the state of Florida as well as providing training and oversight for their operations. Then governor Rick Scott first raised red flags in 2012, questioning the wisdom behind designating a single, specific nonprofit entity the sole recipient of all state funding. The income of former FCADV CEO Tiffany Carr then totaling over $350,000 including benefits also became subject to scrutiny.

Despite such red flags, as of 2019, FCADV maintained its status as the lone entity receiving state funding for domestic violence programs. Year to year, Carr’s income continued to grow as her compensation totaled nearly $670,000 in 2015-16 and close to $800,000 the following year until the former CEO took a cut in 2017-19 to $630,000. Further, the former CEO is accused of fabricating a medical condition in order to cash in on 75 days of personal and sick time of the 620 such days allotted to her.

Following a hearing in front of the House Public Integrity and Ethics committee, Florida governor DeSantis signed a bill that severed the State’s relationship with FCADV and The Department of Children and Families temporarily assumed the oversight of the programs and fund formerly controlled by FCADV. As the state of Florida continues its search for an entity to assume FCADV’s former responsibilities it remains unclear where Carr’s extra compensation came from. Whether it be from taxpayer dollars, grant money, or donations the concern remains the same.

Engaging with Daniels Fund Ethics Initiative Principles

• Viability – Create long-term value for all relevant stakeholders
• Trust – Build trust in all stakeholder relationships

The damage to a host of stakeholder groups are worth noting in this case. First, had the funding the Carr pocketed gone towards efforts maintain and perhaps even improve the services and programs offered by domestic violence shelters through empirical programs assessment, victims of domestic violence could perhaps have been better served. Additionally, taxpayers and donors will likely question if their dollars were used to effectively address domestic violence or were in fact used to fund Carr’s concerning tally of vacation days. This uncertainty will no doubt shake the public’s trust both in the state and in nonprofit institutions moving forward.