{"id":273995,"date":"2025-06-05T02:37:04","date_gmt":"2025-06-05T02:37:04","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/is-being-ethical-part-of-a-board-members-responsibilities\/"},"modified":"2025-06-05T02:37:04","modified_gmt":"2025-06-05T02:37:04","slug":"is-being-ethical-part-of-a-board-members-responsibilities","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=273995","title":{"rendered":"Is being ethical part of a board member\u2019s responsibilities?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div style=\"overflow-x: hidden;\">\n<p>Courts have recognized that board members owe a <a href=\"https:\/\/www.davis-stirling.com\/HOME\/F\/Fiduciary-Duties-of-California-HOA-Directors\" target=\"_blank\" rel=\"noreferrer noopener\">fiduciary duty<\/a> to their members, demonstrating the seriousness of these volunteer positions. Fiduciary relationships are governed by the statutory standards that require directors to exercise due care and undivided loyalty for the interests of the community.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><a href=\"#download\"><em><strong>Download our free Code of Ethics and Declaration template<\/strong><\/em><\/a><\/p>\n<p>\u00a0\u00a0<\/p>\n<p>In layman\u2019s terms, board members, who make decisions on behalf of residents, are legally obliged to use good judgment and make decisions for the community, not just themselves.\u00a0<\/p>\n<p>While the specific duties can be debated, most familiar with them agree that board members must:<\/p>\n<ul class=\"wp-block-list\">\n<li>Act in the association\u2019s best interest<\/li>\n<li>Make informed decisions\u00a0using all available resources<\/li>\n<li>Keep confidential matters confidential<\/li>\n<li>Use the highest degree of honesty and loyalty<\/li>\n<li>Perform within the scope of their authority<\/li>\n<\/ul>\n<p>The word \u201cethics\u201d is not generally seen when discussing fiduciary duties, but that doesn\u2019t mean acting ethically is not part of a board member\u2019s obligations.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><strong>Table of contents<\/strong><\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>What does it mean to act ethically?<\/strong><\/h2>\n<p>Ethical behavior is making the conscious choice to \u201cdo the right thing,\u201d even if you\u2019d rather do something else.<\/p>\n<p>Acting in the association\u2019s best interest, or being honest at all times, are both examples of ethical behavior.<\/p>\n<p>Ethics are part of good board conduct, even if it\u2019s not explicitly written anywhere.\u00a0 \u00a0<\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Why ethics matter in community association leadership<\/strong><\/h2>\n<p>Ethics play a fundamental role in building and maintaining a well-functioning community. When board members act ethically, they\u00a0are more likely to gain the trust of residents, and in return, members are more likely to support their boards.<\/p>\n<p>Trust is especially important in a condo or HOA since residents rely on the board to make the best decisions on their behalf. If members don\u2019t trust the board, the community is far more likely to experience conflict and subpar productivity.\u00a0\u00a0<\/p>\n<p>Residents may even sue the condo or HOA if they feel that board members have not upheld their obligations. By prioritizing ethics, an HOA can avoid these pitfalls and create a community where everyone feels valued and respected.<\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Do we need an ethics policy? Will it really make a difference?<\/strong><\/h2>\n<p>Adhering to a set of ethical standards can help board members, especially new board members, successfully fulfill their duties.<\/p>\n<p>Communities do not need an ethics policy, but it can help to have one in writing. Some condos and HOAs may prefer to use the term \u201ccode of conduct\u201d instead to make it more palatable.<\/p>\n<p>A standard policy may assist with the following:<\/p>\n<ul class=\"wp-block-list\">\n<li>Helps to maintain accountability<\/li>\n<li>Reduces conflict of interest<\/li>\n<li>Builds trust and respect between board members and the community<\/li>\n<\/ul>\n<p>A code of conduct\/ethics policy outlines the core principles that board members must honor, and helps them determine if they are doing anything that might bring their conduct into question. A policy will not make a difference for a board member who has no interest in doing what is best for the community, but it will offer some guidance to members who want to ensure they are making good decisions.<\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Key principles of ethical conduct for board members<\/strong><\/h2>\n<p>To promote ethical conduct, policies or codes of conduct should touch on these key principles. You will notice that many of these principles overlap with fiduciary duties of the board.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><strong>Transparency<\/strong>\u00a0<\/p>\n<p>Transparency involves openly sharing information about activities, finances, and decisions. This includes providing regular updates to other board members and residents, disclosing potential conflicts of interest, and ensuring that meeting minutes are accessible.<\/p>\n<p>Posting records on a <a href=\"https:\/\/www.condocontrol.com\/communication\/public-websites\/\" target=\"_blank\" rel=\"noreferrer noopener\">password-protected website<\/a> or resident portal is an easy and effective way to share information with your community.<\/p>\n<p>When it comes to <a href=\"https:\/\/www.condocontrol.com\/template\/conflict-of-interest-policy\/\" target=\"_blank\" rel=\"noreferrer noopener\">conflicts of interest<\/a>, board members must disclose any potential conflicts as soon as they become aware of them. When other board members become aware of the potential conflict, the situation becomes far less problematic.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"data:image\/svg+xml,%3Csvg%20xmlns=\" http:=\"\" alt=\"\" class=\"wp-image-17497\" style=\"object-fit:cover;width:800px;height:600px\" data-lazy-srcset=\"https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1024x683.jpg 1024w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-300x200.jpg 300w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-768x512.jpg 768w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1536x1024.jpg 1536w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1568x1045.jpg 1568w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc.jpg 1920w\" data-lazy-sizes=\"(max-width: 1024px) 100vw, 1024px\" data-lazy-src=\"https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1024x683.jpg\"\/><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1024x683.jpg\" alt=\"\" class=\"wp-image-17497\" style=\"object-fit:cover;width:800px;height:600px\" srcset=\"https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1024x683.jpg 1024w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-300x200.jpg 300w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-768x512.jpg 768w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1536x1024.jpg 1536w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc-1568x1045.jpg 1568w, https:\/\/www.condocontrol.com\/wp-content\/uploads\/2025\/05\/business-people-teamwork-and-meeting-for-strategy-2025-03-26-12-21-56-utc.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><\/figure>\n<p>Just because there is a potential conflict does not mean the board has to automatically abandon a project, budget, contract, etc.\u00a0But the individual with the potential conflict has to disclose it before any decision is made, and abstain from voting on the matter, in order for the board to move forward without issue.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><strong>Accountability<\/strong>\u00a0<\/p>\n<p>Board members should take responsibility for their actions and decisions. This means acknowledging mistakes, applying constructive feedback without responding negatively, and ensuring all board members adhere to processes and policies.<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><strong>Fairness<\/strong>\u00a0<\/p>\n<p>All residents should be treated equally. This means applying rules consistently, respecting different opinions, and ensuring that decisions are made without bias. This can be easier said than done if you have a lot of friends within the community.\u00a0<\/p>\n<p>\u00a0\u00a0<\/p>\n<p><strong>Confidentiality<\/strong>\u00a0<\/p>\n<p>Board members are privy to sensitive information, such as financial records or health issues. It\u2019s crucial that this information remains confidential and is only shared with authorized individuals when necessary. This requires board members to handle certain records with care.<\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Encouraging ethical behavior in your community<\/strong><\/h2>\n<p>Promoting ethical behavior within a condominium or HOA requires a strong commitment from board members to uphold ethical standards. Through leading by example, residents feel more compelled to \u201cdo what is right\u201d as well. \u00a0<\/p>\n<p>As mentioned earlier,\u00a0establishing a formal code of conduct or ethics policy can assist with this objective. A formal written document serves as a reference point for all board members, ensuring they are aligned with the community\u2019s values and expectations.<\/p>\n<p>The CAI has developed a <a href=\"https:\/\/www.caionline.org\/getmedia\/2776d2b9-3dd1-48a4-8035-e807c288e0d2\/G2G_ModelCodeEthics.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">model Code of Ethics<\/a> for board members, which can be used and customized by condominiums and HOAs. The example cannot cover every potential ethical dilemma, but is offered as a basic framework that can be modified and adopted by any community.<\/p>\n<p>Finally, regular training and workshops on ethics can be beneficial. By participating in\u00a0training sessions for ethical decision-making, board members can navigate through real-world situations and better understand how to respond when faced with tough choices. \u00a0<\/p>\n<p>\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n<p>Acting ethically is absolutely a part of a board member\u2019s responsibilities. Though it may not be explicitly written anywhere, acting honestly, in good faith, and in the best interest of the community are all examples of ethical behavior.<\/p>\n<p>It seems like a common-sense issue, but when you\u2019ve got so many other things to think about, ethics can get pushed aside. Doing what is right may conflict with doing what is easiest. Remaining neutral towards an owner who has been criticizing your work all year is hard.<\/p>\n<p>Conversely, taking a gift from an owner for a job well done may seem innocent enough, but if the gift is significant enough that it influences your judgment, that can be a problem.\u00a0<\/p>\n<p>\u00a0It is during these tough times that having a code of conduct or policy can be most helpful. \u00a0\u00a0<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Courts have recognized that board members owe a fiduciary duty to their members, demonstrating the seriousness of these volunteer positions. Fiduciary relationships are governed by the statutory standards that require directors to exercise due care and undivided loyalty for the interests of the community. \u00a0\u00a0 Download our free Code of Ethics and Declaration template \u00a0\u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":273996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96742,100656,100655,100654],"tags":[2295,100657,3710,100658,100659,3883,3341,22033],"dealstore":[],"offerexpiration":[],"class_list":["post-273995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-board-member","category-laws-and-rules","category-laws-and-rulesandboard-member","tag-board","tag-board-member","tag-ethical","tag-laws-and-rules","tag-laws-and-rulesandboard-member","tag-members","tag-part","tag-responsibilities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is being ethical part of a board member\u2019s responsibilities? - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=273995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is being ethical part of a board member\u2019s responsibilities? - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Courts have recognized that board members owe a fiduciary duty to their members, demonstrating the seriousness of these volunteer positions. Fiduciary relationships are governed by the statutory standards that require directors to exercise due care and undivided loyalty for the interests of the community. \u00a0\u00a0 Download our free Code of Ethics and Declaration template \u00a0\u00a0 [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=273995\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-05T02:37:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/Favicon_180x180_RoundCorner.png\" \/>\n\t<meta property=\"og:image:width\" content=\"180\" \/>\n\t<meta property=\"og:image:height\" content=\"180\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=273995#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=273995\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"Is being ethical part of a board member\u2019s responsibilities?\",\"datePublished\":\"2025-06-05T02:37:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=273995\"},\"wordCount\":1123,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=273995#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/Favicon_180x180_RoundCorner.png\",\"keywords\":[\"Board\",\"Board Member\",\"Ethical\",\"Laws and Rules\",\"Laws and RulesANDBoard Member\",\"Members\",\"PART\",\"Responsibilities\"],\"articleSection\":[\"Blog\",\"Board Member\",\"Laws and Rules\",\"Laws and RulesANDBoard Member\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=273995#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=273995\",\"url\":\"https:\/\/fivemor.com\/?p=273995\",\"name\":\"Is being ethical part of a board member\u2019s responsibilities? 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Fiduciary relationships are governed by the statutory standards that require directors to exercise due care and undivided loyalty for the interests of the community. \u00a0\u00a0 Download our free Code of Ethics and Declaration template \u00a0\u00a0 [&hellip;]","og_url":"https:\/\/fivemor.com\/?p=273995","og_site_name":"Som2ny Network","article_published_time":"2025-06-05T02:37:04+00:00","og_image":[{"width":180,"height":180,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/Favicon_180x180_RoundCorner.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=273995#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=273995"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"Is being ethical part of a board member\u2019s responsibilities?","datePublished":"2025-06-05T02:37:04+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=273995"},"wordCount":1123,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=273995#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/06\/Favicon_180x180_RoundCorner.png","keywords":["Board","Board Member","Ethical","Laws and Rules","Laws and RulesANDBoard Member","Members","PART","Responsibilities"],"articleSection":["Blog","Board Member","Laws and Rules","Laws and RulesANDBoard Member"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=273995#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=273995","url":"https:\/\/fivemor.com\/?p=273995","name":"Is being ethical part of a board member\u2019s responsibilities? 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