What can be learned?
Beware the arrogant mindset. A leader's attitude that he or she is superior to subordinates and even to concerned outsiders is a formula for disaster, both for an organization and even for a society. Such an attitude promotes dictatorship, intolerance of contrary opinions, and an attitude that “we need answer to no one.” We have seen the consequences with William Aramony: moving over the edge of what is deemed by most as acceptable and ethical conduct, assuming the role of the final authority who brooks no questions or criticisms. The absence of real or imagined controls or reviews seems to bring out the worst in people. We seem to need periodic scrutiny to avoid falling into the trap of arrogant decision making devoid of responsiveness to other concerns. The Girl Scout bureaucracy's dealings with its volunteers suggest the inclination toward arrogance and dictatorship in the absence of sufficient real controls.
Checks and balances controls are even more important in not-for-profit and governmental bodies than in corporate entities. For-profit organizations have "bottom-line" performance (i.e., profit and loss performance) as the ultimate control and standard. Not-for-profit and governmental organizations do not have this control, so they have no ultimate measure of their effectiveness.
Consequently, not-for-profit organizations should be subject to the utmost scrutiny of objective outsiders. Otherwise, abuses seem to be encouraged and perpetuated. Often these not-for-profit organizations are sheltered from competition, which usually also demands greater efficiency. Thus without objective and energetic controls, not-for-profit organizations have a tendency to be out of hand, to be run as little dynasties unencumbered by the constraints that face most businesses. Fortunately, investigative reporting and increasing litigation by allegedly abused parties today act as the needed controls for such organizations. In view of the revelations of investigative reporters, we are left to wonder how many other abusive and reprehensible activities have not as yet been detected.
Nonprofits are particularly vulnerable to bad press. Nonprofits depend on donations for the bulk of their revenues. Unlike most businesses, they depend on people to give without receiving anything tangible in return. Consequently, any