1 CODE OF ETHICS POLICY The YMCA's reputation is dependent upon the good judgment, ethical standards and personal integrity of every individual in the YMCA. As the YMCA continues to grow, it is of paramount importance that we always conduct our day-to-day activities in an ethical and responsible manner. GENERAL STATEMENT The purpose of this policy is to outline the high standards of ethics and excellence applicable to the policy volunteers, employees, agents and representatives of the YMCA of Greater Rochester. COMPLIANCE WITH LAWS AND REGULATIONS YMCA business is to be conducted in compliance with all applicable legal requirements. Therefore, each employee and policy volunteer is required to comply with both the letter and spirit of such laws and regulations. Except as required the performance of their duties for the Association, employees may not use or disclose any proprietary information such as, business plans, financial data, management information systems, trade secrets, customer and supplier information and contracts to anyone who does not work for us or have a need to know the information. The understanding of legal requirements by all concerned is responsibility of the staff and Board of Directors. If a question arises, employees should consult with the appropriate staff or officer and Board members should consult with the Board chair. Whenever necessary, legal advice should also be sought. The Board of Directors, with the assistance of staff and legal counsel, will prescribe procedures to assure understanding and compliance with laws and regulations. Staff will implement necessary procedures to follow the Board s directive and to assure understanding and compliance within their areas of responsibilities. Minutes of all Board and committee meetings shall be written, distributed, and approved. Attendance and votes shall be recorded. CONFLICTS OF INTEREST The success and integrity of the YMCA depends upon its employees, policy volunteers and their legal, moral, and ethical standards. When engaged in personal and outside interests, employees and policy volunteers should be free from any interest, influence or relationship which might conflict, or appear to conflict, with the best interests of the YMCA; or which might affect their judgment or loyalty. All have the legal, moral, and ethical duty to protect YMCA interests and refrain from doing anything that would injure the YMCA s services or reputation. Employees and policy volunteers are prohibited from engaging in activities, which constitute actual or apparent conflicts of interest.
2 CONFLICTS OF INTEREST (Continued) If employees have interests, which could conflict with those of the YMCA, they should immediately discuss them with their supervisor. Policy volunteers are required to disclose potential conflicts annually to the Board of Directors. Participation in any activity in violation of this policy must not be started or continued without written approval of the responsible executive or officer of the Board of Directors. The Board of Directors, with the Chief Executive Office and legal counsel, will prescribe procedures for determining whether objectionable conflicts do in fact exist; and will be the final arbiter as to whether or not a particular activity violates this policy. Examples of activities, which will generally violate this conflicts of interest policy, are: 1. Other employment that may interfere with or adversely affect work performance. 2. Direct or indirect ownership by employees or members of their immediate family of a substantial equity or debt interest in a supplier to the YMCA. 3. Accepting substantial gifts, entertainment, loans, compensation, concessions, or benefits of any kind from a supplier to the YMCA. 4. Having financial interests in any YMCA transaction involving the purchase or sale, lease, or rental of any goods, materials, equipment, supplies, services, or property. 5. Unauthorized disclosure or use of confidential information. 6. Using employees, materials, equipment, or other assets of the YMCA for any unauthorized purpose. 7. Involvement in any other business activity, transaction, or relationship, which could reasonably be interpreted by others as illegal or unethical conduct or in conflict with YMCA interests.
3 Payments to Government Officials, Customers, or Others In order to comply with applicable law and to avoid situations which can damage the YMCA s reputation and integrity, no employee or policy volunteer shall make any bribe, or other payment for illegal purposes to or for the benefit of government officials, customers, suppliers, or others. This policy covers not only payments, but also indirect payments made in any form through consultants, third parties, or some other intermediary. Offering or Accepting Gifts or Gratuities The YMCA s continued success and prosperity shall not be impaired by acts or situations, which cause it embarrassment, or obligations or liabilities which compromise its ability to operate independently and effectively. Accordingly, it is the YMCA s policy to generally prohibit the giving and accepting of gifts or gratuities. Whenever an employee or policy volunteer deals with a supplier, a customer or governmental agency as an agent of the YMCA, the employee or policy volunteer has an obligation to act solely in the YMCA s best interest. This obligation includes not only those acts formalized by written contracts, but also covers the everyday business relationships with suppliers, customers, governmental officials, and government employees. Employees are prohibited from giving or accepting substantial gifts or gratuities. An exception may be made for gifts which are recognized as a custom of the trade, are of insignificant value, and could in no way cause the YMCA to be embarrassed, obligated, or incur liability. Political Activity The YMCA recognizes the importance and responsibility of employees and policy volunteers to participate in the political process, and upholds their right to support political parties, candidates, committees, and causes. However, in accordance with Section 501(c) 3 of the Internal Revenue Code, the YMCA is prohibited by statute from directly or indirectly participating in or intervening in any political campaign on behalf of or in opposition to any candidate for public office. Any Section 501(c) 3 organization should not contribute time or money to political campaigns, should not publish or distribute statements on behalf of a political candidate, and should not engage in any other activity which may be considered political.
4 Political Activity (Continued) Employees and policy volunteers may personally contribute to a candidate or cause and party of their choice. However, no employees or policy volunteers shall be compensated or reimbursed for any such personal contribution, and employee efforts devoted to political activity must be outside of working hours. It must also be clear that any statements on public issues are their own and not those of the YMCA. Receipt of Items by Employees, Agents, and Representatives YMCA employees, policy volunteers, agents, and representatives may accept meals, refreshments, or entertainment of nominal value in connection with discussions related to YMCA business. Luncheons or dinner meetings, held to conserve time and build relationships, are an acceptable practice. They should, however, be infrequent and the other party should not be permitted to consistently bear the expense. Such expenditures should be nominal. Common sense should be used to define nominal and to determine what is lavish, extravagant, or frequent. All employees, policy volunteers, agents, and representatives have a personal responsibility to ensure that their acceptance of such meals, refreshments, or entertainment is proper and not reasonably constructed as an attempt by others to secure favorable treatment. YMCA personnel are not permitted to solicit or accept personal gifts from individuals, firms, or their representatives who have or seek business relationships with the YMCA. If other than nominal gifts are received and cannot be returned, they are to be given to the YMCA s General Office for disposition. Except for loans by recognized banks and financial institutions, which are generally available at market rates and terms, YMCA employees, agents, or representatives may not accept loans, guarantees of loans, or payments from individuals or firms doing or seeking business with the YMCA. Employees may also not accept services, accommodations, or travel of any value unless received in conjunction with the performance of YMCA business. Employees shall not make personal purchases via YMCA channels from outside suppliers. This provision excludes authorized employee purchases of YMCA products under programs established for such purposes.
5 General Guidelines for Employees Laws, regulations, and policies pertaining to entertainment, gifts, and payments may vary. Questions regarding their interpretation shall be submitted to the Chief Executive Officer. All approved expenditures for meals, refreshments, and entertainment must be fully documented and recorded on the YMCA s books in strict accordance with established Association policies and procedures. General Guidelines for Employees (Continued) Inexpensive advertising gifts from vendors are acceptable. Gifts having more than a nominal value shall be retuned to the donor with a note of explanation. It is imperative that all employees conduct themselves with integrity and transact all business in a strictly ethical manner. Any attempts by YMCA vendors to operate unethically shall be reported to the Chief Executive Officer. All YMCA employees shall sign a Statement of Understanding which confirms that they understand and will comply with this Ethics Policy. BIDDING NEGOTIATION AND PERFORMANCE OF CONTRACTS The YMCA will strictly observe the laws, rules, and regulations that govern federal, state, and local governments with regard to acquisition and solicitation of goods and services. It will compete fairly and ethically for all such businessrelated opportunities. No YMCA employee, policy volunteer, agent, or representative shall attempt to obtain sensitive government or procurement information from any source; nor attempt to obtain information on competitors bids or proposals when release of such is unauthorized. Individuals negotiating contracts for the YMCA shall ensure that all statements, communications, and representations to YMCA customers are accurate and truthful. Employees and policy volunteers shall not withhold relevant information that might affect a customer s ability to negotiate a fair contract. Sufficient care must be taken to ensure that all costs are properly recorded and charged to the appropriate account, regardless of its budget status.
6 BIDDING NEGOTIATION, AND PERFORMANCE OF CONTRACTS (Continued) Employees, policy volunteers, agents, and representative are specifically prohibited from submitting or concurring in the submission of any claims, bids, proposals or other documents that are knowingly inaccurate, false, fictitious, or fraudulent. Such acts may constitute criminal violations that could result in prosecution of the YMCA and those involved. Supervisors, managers, officers and Board members must be careful in their words and conduct to avoid placing or seeming to place pressure on subordinates that might cause them to deviate from acceptable norms of conduct. The YMCA is dedicated to developing and providing programs and services of the highest quality. Customers have a right to expect and the YMCA has an obligation to ensure that they are delivered at a fair price. This can only be accomplished by a continuing dedication to fair negotiation and strict adherence to all contractual obligations. Personnel Issues Governed by the YMCA of Greater Rochester Employee Handbook Accounting and Financial Records Complete and Accurate Books, Records and Communications Applicable laws and regulations establish the following requirements about record keeping and communications: 1. The YMCA s financial statements all books and records upon which they are based, must accurately reflect all of the organization s transactions. 2. All disbursements and receipts of funds must be properly and promptly recorded. 3. No undisclosed or unrecorded fund may be established for any purpose. 4. No false or artificial statements or entries may be made for any purpose in the YMCA s books and records or in any internal or external correspondence, memoranda, or communication of any type. 5. Insure that all employees benefits and prerequisites are authorized by appropriate boards and committees, and so noted in meeting minutes.
7 Accounting and Financial Records (Continued) Internal Accounting Control The YMCA should maintain a system of internal control, which provides reasonable assurance that: 1. Transactions are executed in accordance with management s general or specific authorization. 2. Transactions are recorded as necessary to (a) permit preparation of financial statements in conformity with Generally Accepted Accounting Principles (G.A.A.P.) or any other criteria applicable to such statements; and (b) maintain accountability for assets. 3. Access to assets is permitted only in accordance with management s general or specific authorization. 4. The recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action taken for any difference. Preservation of Assets and Cost-Consciousness Every employee, policy volunteer, agent, and representative has a duty to preserve the YMCA s assets. Because the YMCA is a charitable organization, it is imperative that all demonstrate strong sensitivity to cost control and follow vigorous procurement standards. Materials and services, acquired for the YMCA s business, must be of appropriate performance, quality, and the best possible price. The YMCA will reimburse reasonable expenses incurred by employees who travel on business or to YMCA sponsored or approved events. Economies of travel should be practiced at all times in the selection of airlines, vehicle, accommodations, and meals. The YMCA may offer reimburse for such expenses to policy volunteers as deemed appropriate and affordable by the Chief Executive Officer. Internet, Software, Electronic Data, Information Violation of copyrights, patents, and the terms of license agreements are prohibited by law in most circumstances. Copies of software should be made only with proper authorization. Unauthorized duplication of materials must not be condoned.
8 Internet, Software, Electronic Data, Information (Continued) Computing and communication technology enables the collection and exchange of personal information on a scale unprecedented in the history of civilization. Thus, there is increased potential for violating the privacy of individuals and groups. It is the responsibility of YMCA professionals to maintain the privacy and integrity of data describing individuals. This includes taking precautions to ensure the accuracy of data, as well as protecting it from unauthorized access or accidental disclosure to inappropriate individuals. It is unethical when someone: seeks to gain unauthorized access to information, disrupts the intended use of information systems, wastes resources (people, capacity, computer) through such actions, destroys the integrity of computer-based information compromises the privacy of users Fundraising Fundraising provides an important source of financial support for the work of the YMCA. A YMCA s fundraising program should be maintained on a foundation of truthfulness and responsible stewardship. Its fundraising practices should be consistent with its mission, compatible with its organizational capacity, and respectful of the interests of donors and prospective donors. Safety and Risk Management The YMCA has an obligation to manage the risk it assumes in its programming and facilities without compromise towards the safety of participants, staff, and the community or the sustainability of the Association. Levels and types of insurance or other forms of risk transfer should be adequate, based on the Association s exposures to loss, to provide for the long term health of the YMCA. Compliance and Disciplines Ethics Violations Failure to comply with the standards, contained in this Ethics Policy, will result in disciplinary action that may include suspension, termination of employment, removal from a policymaking position (such as membership on the Board), termination of contract, referral for criminal prosecution, and/or reimbursement to the YMCA for any losses or damages resulting from the violation. As with all matters involving disciplinary action, principles of fairness will apply. Any person charged with a violation of this policy will be given an opportunity to explain his or her actions before the appropriate disciplinary action is taken.
9 Compliance and Disciplines Ethics Violations (Continued) Disciplinary action may be taken: 1. Against any person who knowingly authorizes or participates directly in actions which are a violation of this policy. 2. Against any person who deliberately fails to report a violation or withholds relevant and material information concerning a violation of this policy. 3. Against the violator s manager or supervisor when the circumstances reflect inadequate supervision or lack of diligence. 4. Against any supervisor or manager who directly or indirectly retaliates against any employee for reporting a violation of this policy, or encourages other to do so. ETHICAL EDUCATION TRAINING FOR EMPLOYEES Since well-informed and well-supervised YMCA employees reflect good management practices, individual employees who know what is expected of them may be more likely to meet accountability standards and less likely to refuse responsibility for their performance or to choose whistle blowing as a vehicle for communicating. Workshops and other forms of training programs on ethics are useful in helping managers and their employees cope with ethical dilemmas.
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