Answer to Question #306937 in History for Lirah

Question

There is conflict between the manager and one of the employees in the procurement department of the company. They are in a disagreement whether company would make charitable donations. According to manager the company should not give money to charity because it does not generate any income, in contrast the employee has expressed that it is important that the company should give back to the community .

Analyze the scenario provided above .Advice your client on how to address the following matter. What insights could the ethical dimensions should be short and concise to be more practicable?

Answer 1

According the US constitution, for any nonprofit organizations to be recognized as charitable organizations, they it must be "organized and operated exclusively for charitable purposes”. They must not be organized or operated for the benefit of private interests; and no part of its net earnings may benefit private parties. Therefore, in this scenario, the manager should adhere strictly as per the constitution not only the company's constitution but as well as the constitution of the US. Similarly, nonprofit organizations are charitable organizations. Therefore, the management guided by the manager should revise and plan on how they should give back to the society.