How competition can be ethical
From my experience in working with several nonprofit organizations both in the US and abroad, as well as from research, I have come to conclude that competition among nonprofit organizations can be positive, and can be ethical.
Positive, because competition in the nonprofit field generally produces increased quantity of products, improved services, and better management.
Ethical, as long as the competitive strategy of the organization is based on the following principles, as well as the values of the organization engaged in competition:
- is mission driven, and is based on the sustainability of the mission and not just the organization;
- is based on principles of empowerment (for all stakeholders: staff, volunteers, members, clients, competitors, donors, community members)
- is based on principles of participation (for the same stakeholders), so that all beneficiaries can be part of the decision making process and thus strengthen the sustainability of the services and the organization itself;
- is based in principles of equity for all parties involved;
- is based on principles of continuous learning and knowledge acquisition, implying that the organization needs to constantly learn new ways to advance its mission, be aware of its strengths and weaknesses, competitive advantage and potential for growth, learn about its competitors, and manage knowledge about its clients, etc.
The extent to which your organization is incorporating these principles in a competitive strategy can be assessed by using the following Ethics in Competition Measurement Tool [doc]. The indicators and the questions are flexible, and I encourage you to adjust them to the values and principles of your own institution.
By relating my personal experience, I would like to also encourage you to further discuss the issue of competition between nonprofits, the way it is affecting your organization, as well as the tools you are using to address this issue. Please leave a comment below.
