For the last 20 years, I have taught philanthropists and foundation professionals from around the world. Essential to that curriculum is “philanthro-ethics” – the responsibility of funders to behave and fund in ways informed by best ethical practices.
Implicit is the inherent power imbalance between those who have money and those who need it. The onus is clearly on the funder to be aware of one’s words, behaviors, and affect. This doesn’t exempt those asking for support to meet ethical standards of honesty and responsibility for funds spent, but, on balance, the burden is on the funder.
A lesson from Jewish business ethics: The Talmud teaches that one may only initiate a negotiation with a business if one is serious about buying. This doesn’t mean that one must buy, but one must not consider this simply an exercise in bargaining prowess and then walk away. After all, there is typically a power imbalance between the buyer and seller so bargaining in dubious faith is an ethical offense. The seller needs to sell to live. The negotiator may not toy with that need for ego.
The message for funders should be clear: abuse of the delicate balance between funders and grantees is an abuse of power.
