a) Fundamental Principles to be Included in a Code of Ethics:

1. Integrity: Integrity involves being straightforward and honest in all professional and business relationships. CM must ensure that all members act with integrity in their interactions with beneficiaries, donors, and stakeholders, fostering trust and credibility.
2. Objectivity: Objectivity requires that CM members not allow bias, conflict of interest, or undue influence from others to override professional or business judgments. This principle ensures that decisions are made in the best interests of the beneficiaries without favoritism or prejudice.
3. Confidentiality: Confidentiality entails respecting the privacy of information acquired as a result of professional and business relationships. CM must ensure that sensitive information about beneficiaries or operations is protected and only disclosed when authorized or legally required.
4. Professional Competence and Due Care: This principle emphasizes maintaining professional knowledge and skill at the level required to ensure that services provided are based on current practices, legislation, and techniques. CM should ensure that all members act diligently and in accordance with applicable standards, particularly as the organization transitions to employing professional managers.

(Total: 8 marks)

b) Benefits of Good Corporate Governance:

1. Enhanced Accountability and Transparency: Good corporate governance ensures that CM’s activities are conducted in an open and transparent manner, which builds trust with stakeholders, including donors, beneficiaries, and regulatory bodies. This transparency is crucial for maintaining the NGO’s reputation and securing ongoing support.
2. Improved Decision-Making: By adopting good governance practices, CM can benefit from more structured and informed decision-making processes. The involvement of professional managers and a well-defined board of trustees ensures that decisions are made after careful consideration of all relevant factors, leading to more effective and efficient operations.
3. Sustainability and Long-Term Success: Good governance practices contribute to the sustainability of CM by ensuring that resources are managed efficiently and responsibly. This approach not only helps in achieving immediate objectives but also secures the long-term future of the NGO, allowing it to continue serving disadvantaged communities.
4. Risk Management: Effective governance frameworks include robust risk management practices, which help CM identify, assess, and mitigate potential risks that could affect its operations. This proactive approach to risk management protects the NGO from financial, operational, and reputational harm, ensuring continuity of services.

(Total: 12 marks)