Code of Ethics
Every Christian school board should have a code of ethics as part of its board policy manual. This code clearly states the expectations for board members and affirms the school board’s beliefs and values. The board should reaffirm and sign this code annually.
Conflict of Interest
A conflict of interest policy should be a part of every Christian school board policy manual, particularly to help deal with board members with family attending or working at the school. A conflict of interest policy should be carefully written to meet the needs and circumstances of the school and be annually reviewed and affirmed by members of the board.
Not all conflicts of interest are illegal or unethical. However, how the board handles conflicts of interest can protect the school from legal liability. Board members with conflicts of interest need to be transparent and excuse themselves from discussions or votes on that particular area. Disclosure is key!
Sarbanes-Oxley Act
Most of the provisions of the Sarbanes-Oxley Act, passed in 2002, are directed toward for-profit, publicly traded companies. However, two requirements apply to nonprofit organizations (including Christian schools); they deal with retaliation against whistle-blowers and with document retention.
Retaliation Against Whistle-Blowers
Under Section 1107 of the Sarbanes-Oxley Act, it is a felony for a company to retaliate against an individual for providing law-enforcement authorities with truthful information relating to the commission, or possible commission, of any federal offense. An example of retaliation would be the termination of an employee for reporting to the IRS that the school did not comply with its reporting obligations.
The Christian school board needs a written policy clearly stating that any employee who brings information about perceived wrongdoing in the school, or by the school business practices, to the administration or the board must be protected against adverse job discrimination due to such a report.
Document Retention
Section 802 of the Sarbanes-Oxley Act makes it a crime to knowingly alter, destroy, mutilate, conceal, or falsify any record or document with intent to impede, obstruct, or influence a federal investigation or the administration of any other federal matter.
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It is recommended that school boards adopt a policy that reflects this. A document retention and destruction policy enables employees to comply with various existing state and federal laws (such as the Fair Labor Standards Act, which requires that payroll records be kept for a specified minimum time period) and to maintain useful evidence for potential lawsuits.
Protection from Liability
The Christian school board should be sure the school has adequate liability insurance, employment practices insurance, and officer and directors insurance. All of these should be reviewed annually to ensure the school has adequate coverage as it grows.
As we move forward in these challenging cultural times, school boards must be prudent and seek the wisdom of God in all their policies and operations to sustain the Christian school.
Editor’s Note: ACSI Legal Resources has a number of sample documents to help in these areas. Sample policies include: Code of Ethics, Conflict of Interest, Whistle Blower, and Document Destruction and Retention. ACSI also produces Personnel Resources for Christian Schools, a CD that provides legally reviewed applications, job descriptions, and contracts. ACSI also offers the Legal Defense Reimbursement Program (LDRP), which provides reimbursement for employment lawsuits and provides pre-termination counseling (
www.acsi. org/LDRP).
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