DFMC - Standards for Ethical Behavior & Professional Conduct
INTRODUCTION/PURPOSE:

The Diocesan Fiscal Management Conference (DFMC) has formulated this set of ethical standards which it believes are directly related to the mission of diocesan fiscal officers. This important affirmation of the Church’s commitment to its trustworthiness, serves as a reminder to the DFMC’s membership of the ministerial and vocational nature of its work for the Church. The DFMC will seek to affirm further through its proper emphasis on spiritual development that no authentically Christian ethic can exist without a commitment to growth in personal holiness and an ever-deepening relationship with Christ. This Standard of Ethical Behavior is issued to demonstrate the commitment of the DFMC to preserving high ethical standards among its membership and to remind membership of its special degree of accountability as faithful servants of the Church.(1)

Our Church and its beliefs are of the highest value, inspired by God. Therefore, our actions must always emulate the sanctity of the Church. For “...man, created in the image of God, shares by his work in the activity of the Creator.”(2) We recognize that the way that models the highest values of Christian discipleship is never the easiest path.

We have accepted a humbling responsibility, that of serving God through the Church. It is our vocation to care for the Church as “a good householder.”(3) This challenge to care for the Church as our own is not an esoteric concept as the Church is our own. God has bestowed the Church on us through all who have labored before us and by those who have and hold the Church close to their hearts. The Church is a legacy to our children and those who will come after us. The Church is a precious gift; to care for this gift is to call each of us to the highest duty of responsibility and impeccable service.

In our duties we are stewards of the goods of the Church. Because of our positions and responsibilities we are leaders, particularly to those who report to us. Therefore we must not retreat into the comfort of merely being functionaries. Our behavior manifests our values. Our actions model and guide the behavior of those who report to us. “The faithful…even by their secular activity must assist one another to live holier lives. In this way the world will be permeated by the Spirit of Christ and more effectively achieve its purpose in justice, charity and peace.”(4) In adopting these Standards for Ethical Behavior, we first hold ourselves to the Standards and in turn hold those who report to us to the same accountability.

Our duties are rarely confined to solitary action. Rather, we are constantly drawn to interact with people from different positions within the Church and of different faiths. In our interaction with people we recognize that every person is a creation of God and is therefore intrinsically valuable and worthy of respect and the dignity of our Creator.(5)

For many, the values we carry compel us to work in the Church. These Standards are written to inspire us to live those values in the daily conduct of the business and management of the Church. The Lord requires, “only to do right and to love goodness, and to walk humbly with your God.”(6)

A public statement invites review and criticism, particularly when our actions do not model our values. We understand this risk because we are all sinners. We acknowledge our own weaknesses and the fact that we will make mistakes. We pledge to correct our errors and to strive to meet professional standards and live lives of holiness.

A commitment to professional behavior includes being attentive to issues that give rise to ethical questions. When the possibility of an ethical issue arises, we must ask: does the Church give guidance that pertains to the issue, action or choice? Does the contemplated action or choice fulfill or fit within the Church’s teaching and the values identified within these Standards?

These Standards are written as a working tool to aid in decision-making. They are of no value if they are not integrated into our policies, procedures and activities. Our goal through implementing these Standards is to make our values known by the actions we take, our conduct, and the manner in which we make decisions.


CORE VALUES

1. We recognize the power of prayer and the need to pray for strength, wisdom and holiness. We will endeavor to study the Gospel and the teachings of the Church and reflect upon how to bring these values into the conduct of our daily lives.

2. We recognize that the financial health of our dioceses, the need to accumulate assets and generate revenue and the responsibility to manage them properly, is necessary to provide the resources to fulfill the Church’s mission both now and in the future.

3. We affirm that the processes and procedures of good business practice must be consistent with the values of the Church and therefore must be adapted to support, strengthen, and enhance the ability to fulfill the mission of the Church.

4. We pledge to demonstrate the highest level of integrity and honesty in the conduct of our responsibilities.

5. We support the teachings of the Catholic Church, including the need to support and care for the less fortunate.

6. We are committed to fair and just practices and respect for the dignity of all people.


PERSONAL PRINCIPLES

7. We will strive to improve our skills and abilities. We are committed to continual learning and updating of our knowledge of the Church and current business theory and practices. We seek to utilize the best business practices to further the work of the Church.

8. We pledge to never knowingly undertake or recommend any financial or business transaction from which we, our family, relatives or friends will personally benefit or profit without fully disclosing the potential benefit to the leadership of our diocese. We shall accept no entertainment, gifts, benefits or gratuities or other valuable consideration for our own benefit from those who conduct or solicit business with the Church without disclosing such offer to our supervisors except for an occasional meal or like amenity incidental to a business meeting. We support the need for and importance of adopting a Conflict of Interest Policy in every diocese with consideration of the recommendation of the USCCB.(7)

9. We reject any notion that Church resources should be used for any purpose other than those defined by the Church. We are committed to use and allocate Church funds to further the mission of the Church, and not for personal use.

10. We recognize that all employees need feedback and therefore invite supervision by the diocesan leadership of our conduct, performance and accomplishments.

11. We aspire to care for our physical, spiritual, mental and emotional well-being, and to maintain professional and personal integrity.


INTERPERSONAL PRINCIPLES

12. We commit to respect the efforts of our peers, including colleagues within each diocesan office, the parishes and those whom we serve. We will strive to engage in collaborative and consultative decision-making.

13. We will endeavor to be clear and open about our expectations, particularly as they relate to a subordinate’s job performance.

14. We will never use our position, authority or power to influence a person’s action or to gain influence or control over them, particularly in ways that would be considered harassment, unwanted personal attention or intimidation.

15. In conflicts we will strive to listen and appreciate the alternative positions and to debate issues openly and fairly.


MANAGEMENT PRINCIPLES

16. We will pursue transparency and openness in the financial dealings of the Church and pledge to disclose the finances to the people of God who support the work of the Church. We will follow Generally Acceptable Accounting Principles (GAAP) in accounting and reporting the finances of our diocese and support the recommendation to report the diocesan finances to the metropolitan archbishop.(8)

17. We will seek expert assistance when investing church funds and to identify and disclose the inherent risks. We commit to invest Church funds prudently with consideration of the Socially Responsible Investment Guidelines issued by the USCCB.(9)

18. We recognize that the gifts of the faithful are a result of their love of God and the Church. We pledge to use their gifts for the purposes (if any) as intended by the donor.

19. We will strive to avoid the creation of unnecessary bureaucracy and will seek to create effective, efficient operating systems which provide appropriate reporting and accountability.

20. We will strive to understand, interpret and comply with both civil and canon laws and regulations and will seek assistance from experts when needed.

21. We will implement policies and procedures to protect the resources of the Church from fraud, misuse and waste, and to provide accurate and reliable financial reporting. We support and encourage an annual audit of diocesan financial statements by an independent certified public accountant. We recognize that an audit is a valuable and necessary internal control which provides Diocesan leadership an assessment of the financial condition of the diocese.(10)

22. We will encourage the development of personnel policies and the promotion of meaningful and effective performance review programs. We will work for fair, just and equitable wages and benefits for priests, deacons, religious and lay employees. When hiring, we will seek the highest level of skill and competence which our resources permit. We accept our responsibility to help recruit, train, encourage, nurture and grow future leaders for the Church.

23. We recognize the Church will continue to have a visible presence throughout the existence of the world. We therefore will act with a view of the long-term future, strength and health of the Church. We will encourage the development of long-term and short-term planning to help focus the use of Church resources on accomplishing its mission.


REPORTING PRINCIPLES

24. We will endeavor to fully inform the leadership of the Church, particularly when information might influence or modify a decision. Further, we will strive to advise the leadership of the options pertaining to a given issue. We will respect and honor the appropriate need for confidentiality. We will not manipulate or hide information or present information in a manner that might deceive or misinform the recipient particularly when informing the Ordinary or Diocesan Administrator.

25. We will seek ways to make financial information and reports more understandable to those not trained in fiscal matters.

26. We will work to develop reporting mechanisms to allow the Bishop’s advisory, consultative and deliberative structures (e.g., Diocesan Finance Council, College of Consultors, Presbyteral Council) to provide informed and current counsel to the Bishop. We will encourage and support the efforts of the Diocesan Finance Council and to see that qualified individuals are recruited, properly informed and consulted regarding the activities of the Diocese.(11)


IMPLEMENTATION

With distribution of the Standards for Ethical Behavior and Professional Conduct, the DFMC encourages members to distribute and review the document with their staffs and incorporate these standards into their local diocesan ethical standards or into a standard for the operations that report to the fiscal officer. In addition, the DFMC encourages distribution of the Standards to parish business managers, diocesan institutions and corporations. In declaring that these Standards are being adopted by Diocesan Fiscal Officers, those administering parish or diocesan institution and corporation business activities will also have a standard for the conduct of their business.

To keep the document current and the values at the forefront of daily actions, the DFMC encourages members to annually review this Standard and the policies of the local diocese to remind and affirm the importance and value of these Standards to the daily conduct of the business of the Church.

In adopting standards for ethical behavior, dioceses should define a process by which individuals can raise ethical or conduct issues and seek clarification. In addition, dioceses are encouraged to create and make public a confidential method for individuals or employees to report suspected ethical concerns or suspicions of fraud.

The DFMC through its Strategic Planning Committee will from time to time review and where appropriate modify, change or update this document. Unless changes are warranted earlier, the Strategic Planning Committee will review this document three years after its issuance. Comments and suggestions should be directed to the Strategic Planning Committee Chairperson through the DFMC National Office.(12)

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1. Diocesan Fiscal Management Conference Strategic Plan, adopted 2003.
2. Laborem Exercens, Encyclical of Pope John Paul II on Human Work, 9/14/81, 280:113
3. Canon 1284.
4. Second Vatican Council, Dogmatic Constitution on the Church, Lumen Gentium, 36.
5. Catechism of the Catholic Church, 225,357,1700,1929.
6. Micah 6:8.
7. Related Parties, Conflict of Interest Policy, Diocesan Financial Issues, Committee on Budget and Finance of the United States Conference of Catholic Bishops (USCCB), approved by the USCCB November 2002.
8. Resolution on Diocesan Financial Reporting, Office of Finance/Accounting Services (USCCB), approved by the USCCB effective January 1, 2001.
9. Socially Responsible Investment Guidelines, Principles for USCCB Investments, November 12, 2003; Office of Finance/Accounting Services, USCCB.
10. The DFMC supports the concepts and need for internal controls as outlined in the Diocesan Internal Controls: A Framework, issued by the Committee on Budget and Finance, USCCB.
11. Canon 492, 493, 494, 1277, 1280, 1287.
12. Standard for Ethical Behavior and Professional Conduct drafted and approved by the Strategic Planning Committee, Ernest W. Armstrong, Chair, April 2005, adopted by the DFMC Board of Directors, April 29, 2005, Rev. Daniel J. Maher, President.


April 29, 2005

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