The duty of loyalty says that a nonprofit board member must, when acting as a nonprofit board member, make decisions that singularly benefit the nonprofit, rather than themselves or those they are close to (individuals or organizations). This duty is an important principle to ensuring the success of a nonprofit. Apparently, this principle is not an obligation of those at FIFA, the soccer's world governing body. Members have sold their votes for all levels of financial gain and even political gain for their own countries. Are such behaviors simply a questionable practice or does real harm come to the nonprofit?
I would argue that a failure to practice the duty of loyalty does damage to a nonprofit's ability to achieve its mission, given that trust is essential. In addtition, fewer resources are available for the nonprofit.
Board Chairs must ensure that all board members understand this duty while all board members are responsible to ensure that this duty is fully observed.
Go here to see the New York Times story.