COA’s Ethical Practice standards are based on the assumption that good resource management drives excellence in agency performance and service delivery, and that good resource management cannot occur in an environment that lacks expectations for ethical practice.
The current discussion of ethical practice in business and legal literature, and best practice codes of corporate governance, parallels the current discussion about ethical practice in the nonprofit community. While debate continues about the feasibility of substituting federal and state regulations for strong voluntary support of non-profit ethical practice standards to prevent improper conduct, the risk of harm to an agency's reputation due to negative publicity remains a strong, practical deterrent to unethical practice. A practical, proactive stance to garnering the public trust goes beyond thinking about compliance with legal standards. The recommended standard can exceed what the law allows and be indicated by “what we are comfortable reading about our organization in the newspaper.”
COA’s standards assume the most effective approach to preventing improper conduct lies in a combination of factors rather than isolated policies and procedures. Research suggests that an organizational culture with a clear preference for trustworthiness in employees, public reactions and demands for accountability, and compliance with legal requirements, altogether, will work to encourage ethical practices.