The halo effect: How to stamp out unethical practice

Content warning: The below article involves themes of abuse and discrimination that some readers may find distressing

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Charities are unfortunately no stranger to unethical behaviour. From corruption and sexual abuse to bullying and fraud, these are all elements of unethical practice that need to be stamped out.

 

But a sense of “moral goodness” within charities can lead to a lack of action to combat such unethical behaviour.

 

Worryingly, research published in 2024 has found that too many charities have an “NGO halo” in place.

 

For some charity workers it means they simply do not want to believe that bad practice is taking place. Others may turn a blind eye to unethical behaviour, believing that bad publicity will hinder their reputation and the wider good work they are carrying out.

 

Here we look in detail at latest research around charities’ halo effect and how they can ensure it does not impede the tackling of unethical practice.

 

 

Halo effect and unethical practice

 

The presence of the NGO halo effect “is not inherently problematic” states latest research by Isabel de Bruin for her doctorate at the Erasmus University Rotterdam.

 

But it is not helping the fight to clean up organisations. This paper found evidence of this effect “in the majority of cases of unethical behaviour” it looked at.

 

The research analysed answers from 34 interviews with charity staff relating to 151 unique cases of poor practice. More than nine in ten of these cases were “related to the NGO halo effect”, her research found.

 

In more than one in five cases unethical behaviour was explained by charity staff through an “ends justify the means mentality”.

 

A total of 17 different types of unethical behaviour are identified when inaction due to the halo effect occurred.

 

Racism, child abuse, sexual harassment, bullying, financial mismanagement, corruption, poor management of conflicts of interest, and fraud were among issues being allowed to take place.

 

One respondent said that during their seven-year career with a charity they “encountered racism, sexism, intimidation, sexual and other transgressive behaviour, lying, slander, nepotism, and not addressing unethical behaviour even though you see it”.

 

Another charity worker told researchers: “harassment, bullying, abuse of power, the administration colluding with fraud and embezzlement, it’s everywhere”.

 

In one in four cases “moral superiority” was prioritised over “legal or social norms”. In more than two in five cases “moral naivety” was found, where charity workers did not see unethical practice as wrong.

 

“An internal perception of moral goodness” within charities can drive its staff to “glorify this morality” and prioritise this perception of “moral goodness above other internal and external considerations,” states de Bruin.

 

Her research adds that the “halo effect” can “contribute to ethical blind spots within the organisation that may enable unethical behaviours to arise or be used to justify or defend them when they do”.

 

 

Action to be taken

 

Acknowledge the problem

 

Charities can only act on problems with the halo effect once they acknowledge it exists. De Bruin advises charities to be “aware of the ways in which perceptions of their mission” and “knowledge of what is right and moral” can be a liability as much as an asset.

 

 

Put processes in place

 

Once the problem is highlighted, charities need to put in place policies and procedures that promote “the ethics and values that they seek to embody”, she adds. She warns that the presence of the halo effect indicates that existing codes are perhaps not robust enough or are not widely known across the organisation.

 

 

Ramp up training

 

Training needs to be increased in promoting an ethical organisation. This can include highlighting examples of situations where staff may become aware of poor and unethical behaviour, such as when balancing funding shortfalls.

 

 

Encourage whistleblowing

 

Charities should have a strong system in place to allow staff to safely alert leaders and regulators to poor practice. This should be widely promoted, and staff given assurances that their concerns will be listened to by leaders.

 

 

Promote equality, inclusion, and diversity

 

As well as reacting to poor behaviour, charities should be working on preventative measures such as promoting equality, inclusion, and diversity (EDI). This is needed to tackle and stamp out racism, sexism, transphobia, and homophobia. Training should focus on promoting EDI for all staff. EDI should also be driven by a charity’s board and leadership team to create buy-in from the top of the organisation. 

 

 

Decolonise operations

 

Poor practice such as racism can be addressed among global charities by transferring power from their western hemisphere-based offices to local operations. A report released in 2023 by NGO members’ body Bond said decolonising operations tackles “superiority and privilege of Western thought and approaches”, that can breed racism within organisations.