Board of Directors Policy Manual

ARTICLE  I
MEMBERSHIP

Section 1.  CLASSES OF MEMBERSHIP

There shall be the following classes of membership:  undergraduate students (juniors and seniors); graduate students;  members of the instructional, research or administrative staffs; and honorary members.  Additionally, there shall be members of Sigma Chapter as further defined in this Policy Manual.

Subsection 1.  Bachelor’s and Master’s Students

Candidates for bachelor’s and master’s degrees who rank in the upper 20 percent of their class at the time of invitation to membership may be inducted into membership following completion of at least one-half of the degree program in which they are enrolled.  Transfer students who meet the qualifications for membership may be inducted after they have completed a minimum of one term of work in the program in business, management, or administration in which the chapter is located, provided their overall record, in the judgment of the collegiate chapter, is of Sigma Beta Delta caliber.

All members inducted as juniors, who rank in the upper 20 percent of their senior class, must be included in the 20 percent limitation referred to above.  Those master’s students who have been previously inducted into Sigma Beta Delta membership as undergraduates and who rank in the upper 20 percent of those receiving the master’s degree must be included in the 20 percent limitation referred above.

Subsection 2.  Doctoral Students

Doctoral students who have completed all requirements for that degree may be inducted without restriction as to number.

Subsection 3.  Instructional, Research, and Administrative Staffs

A member of the instructional, research, or administrative staff of the program in business, management, or administration may be inducted into active membership.  Faculty may be initiated without restriction as to number.  The president of an institution or department chair or dean of the business unit may be inducted to active membership without regard to field of degree or teaching responsibilities.

Subsection 4.  Honorary Members

A chapter may induct up to two (2) individuals annually who have distinguished themselves in the practice of business, management, or administration.

Section 2.  ELIGIBILITY

Notice of induction to membership by a chapter shall be sent to the Executive Director no later than ten (10) days after the induction; it shall be certified by the department chairman or dean of the school or college as to (a) whether the students inducted are in the required percentage of their class, and (b) the total number of students in the junior class, in the senior class, and in the class receiving master’s degrees.

Section 3.  INDUCTION PROCEDURES

Induction of new members can be handled in either of the following ways: (a) The preferred way is to have the students present at the induction ceremony of the chapter which elected that student to membership or (b) Where it is not possible for the student to attend the induction ceremony, the student can be inducted in absentia through the mail or by electronic media by reading the ritual of Sigma Beta Delta and pledging to maintain and uphold the principles of the society.

Section 4.  PERSONAL DATA

Each invited member choosing to accept membership shall be required to register personal data with the Sigma Beta Delta Central Office containing their name, phone number, permanent address and permanent email addresses.

Section 5.  INDUCTION OF FACULTY MEMBERS OF ECONOMICS DEPARTMENTS

Faculty members of economics departments, when such departments provide the principal instruction in economics for students in a program in business, management, or administration, may be regarded as eligible for membership into Sigma Beta Delta.  When departments of economics do not provide the principal instruction in economics for students in a program in business, management, or administration, the faculty members of such a department shall not be regarded as eligible.

Section 6.  INDUCTION FEES AND OTHER CHARGES

The induction fee payable to the Central Office of the Society for each member shall be $50  $65 (U.S.) plus the cost of shipping and handling.  Individual members or the faculty advisor of each collegiate chapter shall transmit to the Central Office the induction fee payable to the Society and other charges no later than ten (10) days after each induction.

Section 7.  SIGMA CHAPTER

There shall exist a Sigma Chapter to which the Board of Directors may elect members of Sigma Beta Delta.  In addition to the classes of membership defined in Article I, Section 1, membership may be extended by Sigma chapter to honorary members who have distinguished themselves in high achievement in business, nonprofit, or philanthropic organizations and endeavors or who have made significant intellectual contributions to business, management, or administration.

---

ARTICLE  II
ADMISSION OF COLLEGIATE CHAPTERS

A program in business, management, or administration located in an institution which is accredited by a regional accrediting body or other recognized national accrediting body or the equivalent and which offers bachelor’s and/or master’s degrees in business, management, or administration may make written application to the Executive Director for a collegiate chapter of Sigma Beta Delta.  Upon a favorable vote of  a majority of the members of the Executive Committee, a charter shall be granted which will be signed by the president and the secretary.  A charter fee of $250 shall be assessed to each chapter.  Upon admission, each new chapter shall be designated by the name of its institution and locale, and this name shall appear in the charter granted to the chapter.

Each petitioning institution must submit as part of its petition for a collegiate chapter of Sigma Beta Delta one copy of its proposed constitution to the Executive Director.  These shall not be in violation of or contradictory to the terms of the Bylaws or Policy Manual of Sigma Beta Delta.  Each collegiate chapter shall be under obligation to keep a current copy of its constitution on file with the Executive Director.

The president, vice president, and secretary-treasurer of each collegiate chapter shall be a member of the instructional, research, or administrative staff who is a member of the society.  One of the officers shall also serve as the chapter faculty advisor.  The Chapter may have student officers other than the faculty officers.

Any chapter not functioning properly may be suspended.  A suspended chapter may be granted a probationary period by the Board of Directors to conform to established policy procedure. The Board of Directors, by a majority vote, may at any time lift the suspension or reactivate the chapter.

The Board of Directors may, by majority vote, declare ineligible any chapter located in a college or university which has had its regional accreditation suspended or which otherwise no longer offers degree programs in business, management, or administration.  When an institution that hosts a Sigma Beta Delta chapter obtains accreditation from ACBSP or AACSB, the Sigma Beta Delta chapter shall discontinue operations upon the establishment of a Delta Mu Delta or Beta Gamma Sigma chapter, or if such a chapter is not established, no later than the end of the academic year following the year of accreditation.  The Board of Directors shall be authorized to reinstate any such chapter when the school or college at which it was located shall again comply with the standards for establishment of a chapter of Sigma Beta Delta.

---

ARTICLE  III
ALUMNI CHAPTERS

Each alumni group petitioning for an alumni chapter of Sigma Beta Delta must submit three (3) copies of a constitution and bylaws appropriate for its own regulation to the Executive Director.  These shall not be in violation of or contradictory to the terms of the Bylaws or Board of Directors Policy Manual.  Each alumni chapter for which a charter has been granted shall be under obligation to file a current copy of its constitution and bylaws with the Executive Director.  Upon a favorable vote of three-quarters (3/4) of the members of the Board of Directors, a charter shall be granted which will be signed by the president and the secretary.  A charter fee of $250 shall be assessed to each chapter.  Upon admission, each new alumni chapter shall be designated by the name of its locale, and this name shall appear in the charter granted to the chapter.

---

ARTICLE  IV
QUADRENNIAL MEETING

After the date and place of the quadrennial convention have been fixed, the Executive Director shall send a notice to the faculty advisor of each active collegiate chapter.  Each of these chapters may select its faculty advisor or a duly appointed representative as a delegate and provide credentials authorizing said delegate to vote and to represent the chapter on matters brought before the convention, which shall include the presentation of a report of national finances covering the period since the immediately preceding financial report.

---

ARTICLE V
DUTIES OF THE OFFICERS

Section 1.  PRESIDENT

The president shall preside at all meetings or conferences that may be held by delegates of the collegiate chapters.  The president shall have authority to call for an assembly of delegates from each chapter whenever it is the president’s judgment that the best interests of the society demand such a conference.  The president shall also serve as chairman of the Board of Directors and the executive committee and supervise the Executive Director of the society.

Section 2.  VICE PRESIDENT

The vice president shall exercise the powers of the president when the latter for any reason is unable to execute them and shall assume such responsibilities as may be delegated by the president.

---

---

ARTICLE VII
DEPOSIT AND DISBURSEMENT OF FUND

Section 1.  OPERATING FUNDS

All current funds of Sigma Beta Delta shall be deposited promptly in checking accounts in banks which have been approved by the Board of Directors.  All withdrawals of current funds shall be signed the treasurer or other designated members of the Executive Committee.  Copies of all vouchers drawn authorizing a disbursement from current funds shall be maintained in the records of the central office.

Section 2.  NON-OPERATING FUNDS

Non-operating funds of the society may be invested in bonds, stocks, or interest-bearing investment accounts or expended in accordance with policies established by the Board of Directors.  Sigma Beta Delta Policy is described in ARTICLE VII, Section 2. Checks received for dividends, interest, redemption, or sale of these investments shall be deposited by the designated staff in the current fund account.  Non-operating funds deposited in investment accounts which have been approved by the Board of Directors may be withdrawn by the designated  Executive Committee members and  the Investment Committee Chair for deposit in the operating funds. The designated Executive Committee members or Investment Committee Chair shall have full authority to execute documents designed to purchase, sell, transfer, or collect upon stocks, bonds, or other investments; and, under rules for the handling of non-operating funds, to initiate the deposit to and withdrawal from investment accounts of the society.  The designated Executive Committee members and/or Investment Committee Chair shall be bonded for a lesser of the amount of the society’s current funds, investments, and savings accounts as of July 1 each year, or $3,000,000.

---

ARTICLE VIII
COMMITTEES

The society shall include the executive committee and such other committees which the Board of Directors has authorized to carry out the mission and purposes of Sigma Beta Delta.

Section 1.  EXECUTIVE COMMITTEE

Subsection 1.  Appointment of Members

The executive committee of the Board of Directors shall consist of the president, vice president, secretary, treasurer, immediate past president. and founding president.

Subsection 1.  Appointment of Members

The Scholarship committee of the Board of Directors will be chaired by a director appointed by the President of the Board of Directors. The Scholarship Committee will be composed of a chair and three other individuals to serve on the committee so that the committee will total three.

Section 3.  INVESTMENT COMMITTEE

Subsection 1.  Appointment of Members

The Investment Committee of the Board of Directors shall consist of the treasurer, and two other  members who will be appointed by the president.

Subsection 2.  Duties

The Investment Committee will have as its objective, the fiduciary responsibility to monitor the society’s investments and to make recommendations and take action for the approval of the Board of Directors regarding those investments held by the society.

Subsection 3. Investment Policy

Sigma Beta Delta authorizes the Investment Committee to invest Endowments and other funds not required for near term operations by Sigma Beta Delta. The Committee may invest these funds in fixed income and equity securities. Investment firms using mutual funds, active management of stocks and bonds, and bank certificates of deposits may be employed. Any firm employed must be authorized by the Board of Directors.  A minimum of 20 percent of such funds should be in FDIC insured Certificates of Deposit or other FDIC insured accounts. Up to 80 percent of funds may be invested in mutual funds, stocks and bonds. These investments should be in conservative growth categories in order to reduce downside risk. Signature authorities for these investments must be Sigma Beta Delta Officers including the President, Vice-president, Secretary, Treasurer, Immediate Past President and the Investment Committee Chair. Two signatures from the above must be required to withdraw funds.

---

ARTICLE IX
PUBLICATIONS

Section 1.  RITUAL

The ritual adopted by the society in 1994 and subject to amendment by the Board of Directors shall be the official ritual.  The Sigma Beta Delta Ritual will be published and supplied to chapters for inductions.

Section 2.  COMMUNICATION

The Board of Directors may authorize for distribution in print or otherwise publications relevant to the mission and objectives of the Society.

---

ARTICLE X
EMBLEM

The official emblem shall be a gold key of such design as adopted by the Board of Directors.

---

ARTICLE XI
CONFLICT OF INTEREST

Whenever a director or officer has a financial or personal interest in any matter coming before the Board of Directors, the affected person shall a) fully disclose the nature of the interest and b) withdraw from discussion, lobbying, and voting on the matter. Any transaction or vote involving a potential conflict of interest shall be approved only when a majority of disinterested directors determine that it is in the best interest of the society to do so. The minutes of meetings at which such votes are taken shall record such disclosure, abstention and rationale for approval.

---

ARTICLE XII
WHISTLEBLOWER

Sigma Beta Delta (SBD) requires directors, officers, and any employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities.  As employees and representatives of SBD, we must practice honesty and integrity in fulfilling our responsibilities and comply with all applicable laws and regulations.

Reporting Responsibility

It is the responsibility of all directors, officers, and employees to comply with the Code and to report violations or suspected violations in accordance with the Whistleblower policy.

No Retaliation

No director, officer, or employee who in good faith reports a violation, or suspected violation shall suffer harassment, retaliation, or adverse employment consequences.  An employee who retaliates against someone who has reported a violation in good faith, is subject to discipline up to and including termination of employment.  This Whistleblower Policy is intended to encourage and enable employees and others to raise concerns within Sigma Beta Delta prior to seeking resolution outside the society.

Reporting Violations

Sigma Beta Delta has an open door policy and suggests that employees share their questions, concerns, suggestions, or complaints with someone who can address them properly.  In most cases, an employee’s supervisor is the best position to address an area of concern.  However, if someone is not comfortable speaking with their supervisor or they are not satisfied with the supervisor’s response, they are encouraged to speak with the Compliance Officer or a board member.  Supervisors and managers are required to report suspected violations to the society’s Compliance Officer, who has specific and exclusive responsibility to investigate all reported violations.  For suspected fraud, or when someone is not satisfied or uncomfortable with following the society’s open door policy, individuals should contact the society’s Compliance Officer directly.

Compliance Officer

The Compliance Officer will be appointed by the President of Sigma Beta Delta and be a member of the Board Advisory Committee.  The society’s Compliance Officer is responsible for investigating and resolving all reported complaints and allegations and, at the Officer’s discretion, shall advise the President and/or Audit Committee.  The Compliance Officer has direct access to the Audit Committee of the Board of Directors and is required to report to the Treasurer/Audit Committee at least annually about compliance activity.  

Accounting and Auditing Matters

The Audit Committee of the Board of Directors shall address all reported concerns or complaints regarding corporate accounting practices, internal controls, or auditing matters.  The Compliance Officer shall immediately notify the Audit Committee of any such complaint and work with the committee until the matter is resolved.

Acting in Good Faith

Anyone filing a complaint concerning a violation or suspected violation must be acting in good faith and have reasonable grounds for believing the information disclosed indicates a violation.  Any allegations that prove not to be substantiated and which prove to have been made maliciously or knowingly to be false will be viewed as a serious disciplinary offense.

Confidentiality

Violations, or suspected violations, may be submitted on a confidential basis by the complainant or may be submitted anonymously.  Reports of violations, or suspected violations, will be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation.

Handling of reported Violations

The Compliance Officer will notify the sender with an acknowledged receipt of the reported violation, or suspected violation, within fifteen business days.  All reports will be promptly investigated and appropriate corrective action will be taken if warranted by the investigation.

---

ARTICLE XIII
RECORD RETENTION AND DOCUMENT DESTRUCTION                                                            

Sigma Beta Delta (SBD) shall retain records for the period of their immediate or current use, unless longer retention is necessary for historical reference or to comply with contractual or legal requirements. Records and documents outlined in this policy includes paper, electronic files (including e-mail) regardless of where the document is stored, including network servers, desktop or laptop computers and handheld computers and other wireless devices with text messaging capabilities.

Sigma Beta Delta shall not knowingly destroy a document with the intent to obstruct or influence an “investigation or proper administration of any matter within the jurisdiction of any department agency of the United States . . . or in relation to or contemplation of such matter or case.” If an official investigation is underway or even suspected, document purging must stop in order to avoid criminal obstruction.

In order to eliminate accidental or innocent destruction, BGS has the following document retention policy:

Type of Document	Retention Period
Accounts receivable and payable ledgers, general ledgers, internal audit reports, and trial balance journals and schedules	7 years
Annual audited financial statements and audit reports	Permanently
Articles of Incorporation, Charter, Bylaws, minutes and other incorporation records	Permanently
Bank Reconciliation	3 years
Bank Statements, deposit records, electronic fund transfer documents, and cancelled checks	3 years
Chart of Accounts	Permanently
Contracts, mortgages, notes and leases (still in effect)	Permanently
Contracts, mortgages, notes and leases (expired)	7 years
Correspondence (general)	3 years
Correspondence (legal and important matters)	Permanently
Correspondence (with customers and vendors)	2 years
Depreciation schedules	Permanently
Employment applications	3 years from making the record or taking the personnel action
Garnishments	7 years
Insurance policies, records, current accident reports, claims (still in effect)	Permanently
Insurance policies, records, accident reports, claims (expired)	3 years
Inventory records	7 years
Invoices (to customers, from vendors)	7 years
Loan documents and notes	Permanently
Personnel files (employee demographic information and compensation records)	7 years
Personnel files (I-9’s)	7 years after date of hire or 1 year after termination
Personnel files (payroll records and summaries including records related to employee’s leave)	7 years
Personnel files (terminated employees)	7 years after termination
Retirement and pension records including Summary Plan Descriptions (ERISA)	Permanently
Tax Returns and worksheets	Permanently
Timesheets	7 years
Trademark registrations and copyrights	Permanently
Workers Compensation documentation	10 years after 1st closure

Used with permission of Beta Gamma Sigma.

---

---

ARTICLE XII
REVISION OF BOARD OF DIRECTORS POLICY MANUAL

The Board of Directors shall have the authority to amend the Board of Director’s Policy Manual of Sigma Beta Delta in any manner consistent with the Bylaws by a majority vote of the Board of Directors.

• Rev. July 2013
• Rev. July 2014
• Rev. January 2016
• Rev. September 4 2020 (text highlighted in gray still needs to be considered—see additional notes)
  2020 Approved SBD Board of Directors Policy Manual Sept 4 2020