business ethics

The Ethical Breakdown of Oxfam International

By March 22, 2018 No Comments

Oxfam International’s rallying cry is “The Power of People against Poverty.” It is a noble concept of non-governmental agencies banding together to fight disease and devastation in some of the worst places on earth. One would think that those who work for Oxfam International would be Oxfam Internationalbound by a higher purpose, that their behavior would be for the common good. However, even the noblest of ideas can have major flaws in the absence of solid ethical grounding.

Deputy CEO Resigns

In the first weeks of February 2018, Oxfam International’s Deputy CEO, Penny Lawrence announced her resignation from the organization. Astonishingly, she resigned over a scandal involving sex crimes among the organization’s aid workers in the countries of Haiti and Chad. She had no choice but to resign, as the publicly funded organization was in danger of losing millions of dollars in funding. The outrage against the organization is understandable. I must admit, I would be very hard-pressed to support them as well.

If you remember back, in 2010 Haiti endured a tragedy of biblical proportion. An earthquake struck the country and between 200,000 and 300,000 people were killed. We cannot imagine such tragedy and grief. Aid poured in from all over the world, and for the most part there were aid workers who had good hearts with good intentions.

Unbelievably, almost surrealistically, Oxfam’s Haiti country director, Roland van Hauwermeiren, used the tragedy to transform a rented villa into a brothel, where the prostitutes wore Oxfam T-shirts.

The allegation was that the country director had developed the brothel idea in Chad and then moved the brothel operation to Haiti when disaster had struck. Investigative reporters apparently knew something was ethically wrong with Oxfam in Chad, and with the director’s behavior in particular, but little was done to “police” the suspected unethical behaviors.

Said Deputy CEO, Penny Lawrence:

“As program director at the time, I am ashamed that this happened on my watch and I take full responsibility.”

The Aftermath

Oxfam International is based in London. Its charitable work reaches out to more than 90 countries on a regular basis and assists countries after emergencies and disasters strike. After the brothel operation (and its apparent cover-up) was brought to light, Oxfam was in danger of losing about $44 million in government funding.

Though the organization has made an apology for how their staff behaved in 2011, they have been criticized more soundly for their internal failure to respond to it. Though there is now the usual talk of a zero-tolerance approach, no one really knows what that approach might be. What is known at this time is that the government of Haiti is threatening legal action and everyone is in agreement that Oxfam International has lost the public trust. The organization has lost its moral and ethical leadership.

The UK Charity Commission has also opened an inquiry. Said a spokesperson:

“The Commission has concerns that Oxfam may not have fully and frankly disclosed material details about the allegations at the time in 2011, its handling of the incidents since, and the impact that these have both had on public trust and confidence.”

The Charity Commission was informed by Oxfam International that it was investigating “inappropriate sexual behavior, bullying, harassment and the intimidation of staff,” but no one was ever told of its scope. No one outside Oxfam knew the whole story, and while a handful were fired and van Hauwermeiren resigned, there were few consequences for sexually abusive and exploitive acts. As the layers of the case have been peeled back, it has become clear that

There had been the use of sex workers by Oxfam staff going back as far as 2006 in Chad.

The Iceberg

The discovery of the irregularities in Haiti, and before that, Chad are seen as merely the tip of the iceberg. Investigators have also uncovered unreported trips and unauthorized expenditures by Oxfam International staff. The organization was without an ethical compass, and staff members were able to essentially set up an illegal sex trade because there were no strict consequences for the staff members, little oversight on the part of the parent organization and a rationalization on those in charge in Haiti that no one would find them out.

In all of the discussions about this scandal, the one word that appears to have eluded all involved, is the word “ethics.” There were virtually no ethical expectations, no ethical training in place and sadly, no ethical outcome. This case is the result of a disappearance of ethics; a money making brothel in the midst of unspeakable tragedy.

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