The Hierarchy of Ethical Values in Nonprofit Organizations: A Framework for an Ethical, Self-Actualized Organizational Culture

Using Maslow's theory of human psychological development as a framework, a model based on the hierarchy of values is proposed to explain how not-for-profit organizations develop an ethical culture. As with individual values, the five levels of ethical behavior—financial competence, accountability, reciprocity, respect, integrity—are attained successively and one at a time. Thus ethical values are a foundation for achieving integrity, defined herein not only as incorruptibility but as a total commitment to the highest standards of behavior. External controls stimulate ethical behavior primarily at the lower levels; internal controls must be present to achieve an ethical organizational culture.