CASE STUDY:

Based from the given case, the National Baptist Convention (NBC USA) is the
oldest and one of the largest African-American religious organizations, assists member
churches in ministering to their congregations and communities. They offer guidance on
moral standards, politics, and other issues of interest to its membership. NBC USA was
much like a for-profit business undergoing the transition from private to public ownership.
Such transitions bring increased transparency in operations, greater accountability for
resources, a stronger focus on strategic planning, and performance evaluations of top
managers.

In United States, nonprofit and religious organizations have traditionally been

accorded a place of honor and respect. Religious organizations, in particular, have
assumed a special role within North American society. Religion has evolved in terms of
its impacts on today’s society, it remains firmly linked to some foundational issues and
beliefs in the United States. Given their fundamental missions and associated
responsibilities, religious organizations and leaders are expected to uphold high moral
standards and to serve as role model for others. However, various scandals that occurred
in the 1980s and 1990s brought to light the fallibility and vulnerability of both nonprofit
and religious groups. Although formal religion may have declined in the United States, a
majority of African Americans still consider the church an important aspect of their lives.
Within the black community, the church is often a focal point for social, religious, political,
and cultural life. African- American churches and their members often assume economic
and financial responsibility for their communities. During the times of racial strife and
discrimination, the church serves as a place of refuge and equality.

Lyons was impressed with the role of church officials and decided to become a
minister. As a young preacher, Lyons began developing a reputation for charisma, oratory
skill, and political prowess. He was later on called “the black pope” and a “classy cleric”.
Lyons’ legal troubles stemmed from accusations that he swindled about $250,000 from
NBC USA. Although Lyons claimed that NBC USA represented 8.5 million members in
33,000 churches, these figures have been challenged. Given the role of religion within
the black community and past history of race discrimination in the United States, the trial
of Henry Lyons was fraught with questions of fairness and equity. He was convicted on
state charges of racketeering and grand theft in February 1999. However, after being
convicted in both state and federal courts, he changed his mind and indicated he was
ready to accept his punishment. Although Reverend Lyons was convicted of taking
money from members of the convention through various fund diversions, they still seemed
willing to help him out financially. Whether it is forgiveness, an attempt to keep up the
better image of years past, or some private matter, the NBC USA fully supported
Reverend Henry Lyons after his conviction.

A nonprofit organization should have powerful and proactive board directors who
are committed to ethics and willing to provide oversight in this regard. They should act
with the same level of professionalism and accountability as board members of any
profited-oriented business. Business firms are constantly seeking to increase profits,
nonprofit organizations are relatively free of this relentless pursuit. They often hold more
promise and hope for society, but they also hold the potential for problems due to the lack
of scrutiny and accountability. The lack of ethical standards from the president of a
national church organization shocked people nationwide. Regardless of the presumed
ethical standpoint of the members of an organization, there should be a written code of
ethics that is widely communicated and expected of all organizational members.
Corporate governance remains a needed constituent in all types of organizations to
ensure that actions made by employees and other agents are both legally and ethically
acceptable.