OL 620 Module Six Short Paper Guidelines and Rubric Overview: For this task, you will write a short paper addressing the concerns and strategy for ex
OL 620 Module Six Short Paper Guidelines and Rubric Overview: For this task, you will write a short paper addressing the concerns and strategy for executive compensation in a not-for-profit/charity setting.
Prompt: Begin by reading and critically analyzing the case study “Nonprofit Executive Compensation: How Much is Too Much?”
Then, write a short paper that answers the following questions:
What are some of the advantages for a not-for-profit organization that pays its executives similarly to a for-profit business? Explain using specific details.
What are some of the disadvantages of expecting executives to work for less in a not-for-profit than they would in a comparable position in a for-profit corporation? Explain using specific details.
Rubric Guidelines for Submission: Your paper musts be submitted as a 2- to 3-page Microsoft Word document (in addition to a cover page and references). Use double-spacing, 12-point Times New Roman font, and one-inch margins. Cite at least three sources according to APA style.
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Print Page Change Text Size: T T T Bertrand Russell on Critical Thinking
William Hare Mount St. Vincent University [email protected] (mailto:[email protected])
ABSTRACT: The ideal of critical thinking is a central one in Russell's philosophy, though this is not yet generally recognized in the literature on critical thinking. For Russell, the ideal is embedded in the fabric of philosophy, science, liberalism and rationality, and this paper reconstructs Russell's account, which is scattered throughout numerous papers and books. It appears that he has developed a rich conception, involving a complex set of skills, dispositions and attitudes, which together delineate a virtue which has both intellectual and moral aspects. It is a view which is rooted in Russell's epistemological conviction that knowledge is difficult but not impossible to attain, and in his ethical conviction that freedom and independence in inquiry are vital. Russell's account anticipates many of the insights to be found in the recent critical thinking literature, and his views on critical thinking are of enormous importance in understanding the nature of educational aims. Moreover, it is argued that Russell manages to avoid many of the objections which have been raised against recent accounts. With respect to impartiality, thinking for oneself, the importance of feelings and relational skills, the connection with action, and the problem of generalizability, Russell shows a deep understanding of problems and issues which have been at the forefront of recent debate.
The ideal of critical thinking is a central one in Russell's philosophy, though this is not yet generally recognized. Russell's name seldom appears in the immense literature on critical thinking which has emerged in philosophy of education over the past twenty years. Few commentators have noticed the importance of Russell's work in connection with any theory of education which includes a critical component. Chomsky, for example, reminds us of Russell's humanistic conception of education, which views the student as an independent person whose development is threatened by indoctrination. Woodhouse, also appealing to the concept of growth, points out Russell's concern to protect the child's freedom to exercise individual judgment on intellectual and moral questions. Stander discusses Russell's claim that schooling all too often encourages the herd mentality, with its fanaticism and bigotry, failing to develop what Russell calls a "critical habit of mind". (1) The threat of indoctrination, the importance of individual judgment, and the prevalence of fanatical opinions all point up the need for what nowadays is called critical thinking; and Russell's work is valuable to anyone who wants to understand what this kind of thinking entails and why it matters in education.
More needs to be said, however, to establish the significance of Russell's conception of critical thinking, which anticipates many of the insights in contemporary discussions and avoids many of the pitfalls which recent writers identify. Some factors, perhaps, obscure a ready appreciation of Russell's contribution. His comments on critical thinking are scattered throughout numerous writings, never systematized into a comprehensive account; (2) nor did Russell tend to use the now dominant terminology of "critical thinking". This phrase only began to come into fashion in the 1940s and 1950s, and earlier philosophers spoke more naturally of reflective thinking, straight thinking, clear thinking, or scientific thinking, often of thinking simpliciter. There are useful distinctions to be drawn among these, but it is often clear from the context that, despite terminological differences, the issue concerns what is now called critical thinking. Russell uses a wide variety of terms including,…..
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Becoming a Critic Of Your Thinking Sublinks:
Content Is Thinking, Thinking is Content (https://www.criticalthinking.org/pages/content-is-thinking-thinking-is- content/958) Bertrand Russell on Critical Thinking (https://www.criticalthinking.org/pages/bertrand-russell-on-critical-thinking/477) Becoming a Critic Of Your Thinking (https://www.criticalthinking.org/pages/becoming-a-critic-of-your-thinking/605) Critical Thinking Development: A Stage Theory (https://www.criticalthinking.org/pages/critical-thinking-development-a- stage-theory/483) Distinguishing Between Inferences and Assumptions (https://www.criticalthinking.org/pages/distinguishing-between- inferences-and-assumptions/484) Critical Thinking: Identifying the Targets (https://www.criticalthinking.org/pages/critical-thinking-identifying-the- targets/486) Distinguishing Between Inert Information, Activated Ignorance, Activated Knowledge (https://www.criticalthinking.org/pages/distinguishing-between-inert-information-activated-ignorance-activated- knowledge/488) Glossary of Critical Thinking Terms (https://www.criticalthinking.org/pages/glossary-of-critical-thinking-terms/496) The Analysis & Assessment of Thinking (https://www.criticalthinking.org/pages/the-analysis-amp-assessment-of- thinking/497) Thinking With Concepts (https://www.criticalthinking.org/pages/thinking-with-concepts/525) Universal Intellectual Standards (https://www.criticalthinking.org/pages/universal-intellectual-standards/527) Valuable Intellectual Traits (https://www.criticalthinking.org/pages/valuable-intellectual-traits/528) Open-minded inquiry (https://www.criticalthinking.org/pages/open-minded-inquiry/579) Using Intellectual Standards to Assess Student Reasoning (https://www.criticalthinking.org/pages/using-intellectual- standards-to-assess-student-reasoning/602) Critical Thinking in Every Domain of Knowledge and Belief (https://www.criticalthinking.org/pages/critical-thinking-in-every- domain-of-knowledge-and-belief/698)
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Nonprofit Executive Compensation: How Much Is Too Much?
Case
Author: Craig E. Johnson
Online Pub Date: March 06, 2016 | Original Pub. Date: 2011
Subject: Public & Nonprofit Management, Business Ethics, Compensation Management
Level: | Type: Indirect case | Length: 924
Copyright: © SAGE Publications, Inc. 2012
Organization: Boys & Girls Clubs of America| Los Angeles County Museum of Art| Museum of Modern
Art (MoMA)| National Veteran Business Development Council| Smithsonian Institution| WHYY-FM |
Organization size: Large
Region: Northern America | State:
Industry: Arts, entertainment and recreation| Programming and broadcasting activities| Social work
activities without accommodation
Originally Published in:
Johnson, C. E. ( 2011). Nonprofit Executive Compensation: How Much is Too Much? In Organizational
ethics: A practical approach (2nd ed., pp. 12– 14). Los Angeles: SAGE Publications, Inc. ISBN:
9781412987967.
Publisher: SAGE Publications, Inc.
DOI: https://dx.doi.org/10.4135/9781506324609 | Online ISBN: 9781506324609
© SAGE Publications, Inc. 2012
The case studies on SAGE Business Cases are designed and optimized for online learning. Please refer to the online version of this case to fully experience any video, data embeds, spreadsheets, slides, or other resources that may be included.
This content may only be distributed for use within Southern New Hampshire Univ. https://dx.doi.org/10.4135/9781506324609
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Page 2 of 4 Nonprofit Executive Compensation: How Much Is Too Much?
Abstract
The case focuses on the extravagant salaries that executives in nonprofit organizations earn. This is illustrated with examples ranging from the former chief executive of the Smithsonian Institution to the director of the Los Angeles County Museum of Art. The Internal Revenue Service has responded to an extent to restrict this type of behavior in nonprofits. This case study asks students to consider whether the response to this business problem has been sufficient and to assess how charities themselves should tackle the issue of excessive salaries for executives.
Case
Corporations aren't the only organizations accused of paying their executives too much and providing them with outlandish perks. Lawrence Small, the former chief executive of the Smithsonian Institution in Washington, D.C., saw his pay jump from $536,000 to $915,000 between 2000 and 2007. He traveled by private, chartered plane and took nearly 10 weeks of vacation a year. His deputy was absent from the Smithsonian one quarter of her workdays while serving on other boards, which earned her about $10 million in outside income. Combined compensation for executives at the National Veterans Business Development Corporation amounted to more than 22% of the money Congress appropriated to the organization to help veterans. The group's leaders also spent over $5,000 for two meals at a steakhouse. Senators criticized the Boys & Girls Clubs for paying its president nearly $1 million a year while spending over $4 million on travel expenses for 350 staff members. The president and CEO of Philadelphia public radio station WHYY earns more than the heads of the Public Broadcasting System, National Public Radio, and many commercial stations.
The Internal Revenue Service has tightened restrictions on nonprofits in light of the compensation scandals. Nonprofits are now required to reveal executive salaries greater than $150,000 and to disclose amounts spent on housing allowances, expense accounts, chauffeurs, bodyguards, and first-class air travel. Board members can be hit with penalties if pay packages are considered too generous. However, the IRS waives the penalties if the board can establish that the compensation package is comparable to those paid by other, similar charities.
It is easy to see why the IRS is increasing its oversight of nonprofit executive compensation. Money spent on salaries and travel often means less money available for helping the poor, educating children, supporting the arts, healing the sick and other causes. A number of Boys & Girls Clubs were also forced to close, for example, even as the parent organization's CEO took home $1 million in compensation. Then, too, tax-exempt organizations are supposed to serve the public good, not take advantage of the tax code to enrich their leaders. Society expects nonprofit executives to be motivated by service, not pay. According to the director of the Nonprofit Leadership and Management program at the University of San Diego, “There is a moral obligation for nonprofits to compensate their top staff in a way that is respectful of their mission” (Kosseff, 2004).. Some donors are fighting back, refusing to support organizations led by highly paid executives. Critics of WHYY distributed bumper stickers with a red circle and slash over WHYY with the words “Its CEO makes over $400,000. Do you?” (Davis, 2008).
Greater IRS scrutiny and donor protests will not end the debate over nonprofit executives' salaries. That's because more and more charities are adopting strategies traditionally associated with businesses, such as hiring MBAs, conducting market research, advertising, and jettisoning unproductive activities. Those groups that operate in a more businesslike fashion may experience a dramatic increase in revenues and programs, increasing their outreach and enabling them to better fulfill their mission. However, nonprofits that adopt a business model can end up bidding against businesses (and other nonprofits) when recruiting talented executives. For example, the Los Angeles County Museum of Art lured a new director from the Dia Art Foundation in New York by offering him a $1 million annual compensation package. Said the museum's major donor, “We wanted him and we had to induce him to leave where he was, and the financial package was a
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Page 3 of 4 Nonprofit Executive Compensation: How Much Is Too Much?
1.
2. 3.
4.
5.
major part of that inducement. It's a market. You've got to be competitive” (Pogrebin & Taylor, 2010).
Many board members argue that high-performing nonprofit executives deserve what they make. According to the chairman of the Museum of Modern Art in New York, which paid its director $2.7 million in salary, housing allowance, and other benefits in 2008, “If you are lucky enough to have the best executive in the field, you should compensate the person accordingly … because if you want your organization to be well run, you've got to find the person who can accomplish it” (Pogrebin & Taylor, 2010).
Discussion Questions
How much is too much when it comes to nonprofit executive compensation? What standards do you use to make this determination? How should nonprofit pay levels be set? Should managers at charities be expected to work for less than their colleagues in corporations? Why or why not? Should nonprofit groups operate like businesses? What are some of the potential benefits of doing so? The potential dangers? If you discovered that the leader of your favorite charity was receiving a very high salary and benefits package, would you stop supporting that group?
References
Davis, C. (2008, November9). Pay package awarded to WHYY chief questioned.The Philadelphia Inquirer, p. A01. Kosseff, J. (2004, March14). Charity Inc.The Oregonian, p. A11. Pogrebin, R. , & Taylor, K. (2010, April26). Pulling the reins (a bit) on hefty salaries for cultural executives.The New York Times, p. C1.
Bibliography
Inzie, S. (2010, March13). Senators critical of salary expenses, perks at Boys & Girls Clubs.The Washington Post, p. A05. Olson, E. (2008, December30). A nonprofit for veterans is faulted on spending.The New York Times, p. B3. Pogrebin, R. (2007, June21). Smithsonian ex-chief criticized in report.The New York Times, p. E1. Spector, M. , & Banjo, S. (2009, March27). Currents: Pay at nonprofits gets a closer look.The Wall Street Journal, p. A9. https://dx.doi.org/10.4135/9781506324609
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