Teaching business ethics: Is there a gap between rhetoric and reality?

In light of the continued erosion of business ethics in America, the ongoing question is what are the nation's business schools doing to prepare ethically responsible future leaders of industry and government? This paper reports the findings of a survey mailed to every program accredited by the American Assembly of Collegiate Schools of Business. The curriculum treatment of business ethics is identified at the undergraduate and the graduate levels in public as well as in private colleges and universities. In addition, the paper presents the status (required versus elective), credits, and enrollment patterns associated with institutions offering a special course whose primary focus is the ethical or moral component of business decisions. Depending on one's perspective, the results range from “encouraging” to “disappointing” and suggest that more can and should be done within the curriculum of American post-secondary higher education.     

The Role of Business Schools in Ethics Education in Iceland: The Managers’ Perspective

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt by the 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere.     

Incorporating corporate social responsibility into graduate employability

To remain sustainably viable in today's business environment, employers require appropriate skills to support their commitment to social responsibility. When recruiting skills, employers recognize that graduate attributes are essential indicators of the capability to render constructive workplace outcomes. Graduates need to develop these attributes to demonstrate their employability potential to prospective employers. However, existing employability capital frameworks do not include the graduate attributes needed to measure capability in corporate social responsibility (CSR) skills. The objective of this study was to determine which graduate attributes would support employability capability in CSR skills. Following a theoretical investigation, a mixed-method exploratory study was undertaken in South Africa's state-owned electricity provider to determine the employability attributes required by the organization in CSR management. The first phase involved a data collection survey, 302 managers and supervisors in South Africa's primary electricity provider rated a proposed 44 personal attributes linked to nine theoretical determined CSR skills and their importance in CSR management. In the second phase, the survey results were validated through a separate Delphi technique with three Human Resource Development experts. Confirmatory factor analysis found significant relationships between the tested attributes and the nine CSR skills. The findings could assist graduates in understanding the attributes they need to develop to be deemed employable for CSR performance. Furthermore, higher education institutions can include the results in curriculums to contribute to the development of CSR skills. Finally, the attributes and skills could be used to conceptualize a focused CSR employability capital, which employers can use to test employability potential.     

Developing an International and Technology-Driven Business School Program

Abstract

Academics and practitioners alike have voiced their concerns about how to continuously improve the quality of education in the business school. Two central issues that have received recent attention are (1) how to address a rapidly changing and increasingly global economy, and (2) how to infuse technology into the business school curriculum. Both of these issues are changing at break-neck speed, whereas the academic environment, by its very nature and structure, is struggling to meet these demands ata much slower pace. We attempt to offer solutions to these major issues by developing an action plan for international business and technology. One key factor in developing global and technological programs in business schools is the input of its stakeholders-the international and technological business community. In this study, we report the results of an investigation of the international business and technological community's perceptions of the skills they require of recent business school graduates. A total of 126 business organizations provide insights for business schools to develop action plans to address international and technological needs. A discussion and implications of our findings provides an initial avenue for schools to follow in their strategic planning for the future.     

Entrepreneurial intention and startup preparation: A study among business students in Malaysia

Intention, as the starting point of pursuing self-employment and creating new ventures, is crucial before actually establishing a business enterprise. Entrepreneurship is understood to be an essential ingredient for enhancing a country's economic competitiveness, growth, and sustainability while confronting the escalating challenges of globalization, such as increasing unemployment. This study provides empirical evidence on the factors influencing entrepreneurial intention and startup preparations among university students in Malaysia. The findings provide scholars and academic policymakers with insights into the effectiveness of Malaysia's entrepreneurial education as designed and practiced by public universities. The Malaysian government should apply these findings to fortify existing policies and programs and formulate new ones to support graduate entrepreneurs, while universities and other higher education institutions should provide high-quality entrepreneurial courses and programs to young Malaysians to foster an inclination toward entrepreneurship.     

Generating and Evaluating International Entrepreneurial Ideas

Much has been written about the role and usefulness of entrepreneurial education in America's dynamic environment beset by a chronic shortage of good entry and career jobs. This paper focuses on two aspects of entrepreneurial education that are decisive to the success of a new venture, yet are hard to teach: (1) how to find profitable, realistic ideas for a new business and (2) how to evaluate them. The author applied the experiential learning approach to these two critical phases of entrepreneurial education in his international marketing classes. He describes five steps that must be taken to introduce this method in the classroom: an Idea Generating Matrix based on deductive procedures and empirical reasoning; a Multifactor Screen to select, postpone, or discard entrepreneurial ideas; a Multilevel Idea Model by applying the case of an ethnic fast food franchise; a Modus Operandi/ Modus Acquirendi Matrix to decide on the operational and acquisition strategy; and a final step, in which reflective and "respondent" behavior must convert to action and "operant" behavior.     

Lack of fit between business community and corporate culture: The case of a multinational company in Venezuela

The conflict between the culture of a multinational corporation and the culture of the local business environment in Venezuela is the focus of this study. Corporate culture serves as an integrating mechanism for a corporation that is expanding globally. At the same time, local Latin American managers have their own guidelines for achieving personal success in business dealings. As the two philosophies may not be in harmony, long-time local managers often experience dissatisfaction, causing them to advance their careers through entrepreneurial opportunities at local firms. This loss of management talent is a cost the multinational experiences by adhering to the headquarters culture rather than allowing some adaptation for differences in local business practices. © 1995 John Wiley & Sons, Inc.     

Inducements,Impediments, and Immediacy: Exploring the Cognitive Drivers of Small Business Managers' Intentions to Adopt Business Model Change

Small business managers rely on judgment and heuristics when making critical strategic decisions. We explore this phenomenon, expanding the theory on cognition and strategy to explain the cognitive determinants of strategic decisions leading to small firm business model change. We integrate existing theories (entrepreneurial opportunity exploitation, cognitive resilience, prospect theory, behavioral theory of the firm, threat‐rigidity) into a framework explaining strategic intentions, based on managers' perception of business opportunity interacting with assessment of the external environment, current performance, and prior experience. The framework is empirically tested in the context of Canadian real estate brokerage industry, facing potentially major disruptive change.     

Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?

Previous research on the psychology of entrepreneurs found that personality traits such as locus of control failed to distinguish entrepreneurs from managers. In search of an individual characteristic that is distinctively entrepreneurial, we proposed an entrepreneurial self-efficacy construct (ESE) to predict the likelihood of an individual being an entrepreneur. ESE refers to the strength of a person’s belief that he or she is capable of successfully performing the various roles and tasks of entrepreneurship. It consists of five factors: marketing, innovation, management, risk-taking, and financial control.We conducted two studies, one on students and the other on small business executives. Study 1 found that the total ESE score differentiated entrepreneurship students from students of both management and organizational psychology, and that across the three types of students, ESE was positively related to the intention to set up one’s own business. We also found the entrepreneurship students to have higher self-efficacy in marketing, management, and financial control than the management and psychology students. In study 2, we simultaneously tested effects of ESE and locus of control on the criteria of founders vs. nonfounders of current businesses. After controlling for individual and company background variables, the effect of ESE scores was significant, but the effect of locus of control was not. More specifically, it was found that business founders had higher self-efficacy in innovation and risk-taking than did nonfounders.The results of this study demonstrate the potential of entrepreneurial self-efficacy as a distinct characteristic of the entrepreneur. From these results, some important implications can be drawn on entrepreneurial assessment, education, counseling, and community intervention. First, ESE can be used to identify reasons for entrepreneurial avoidance. There may be many individuals who shun entrepreneurial activities not because they actually lack necessary skills but because they believe they do. This is especially true for sectors of the population such as women or those minority groups who are perceived as lacking entrepreneurial traditions. Communities and individuals could benefit from identifying sources of entrepreneurial avoidance by targeting their efforts toward enhancing ESE of particular groups or individuals for specific aspects of entrepreneurship.An additional use of ESE is to identify areas of strength and weakness to assess the entrepreneurial potential of both an individual and a community. Once entrepreneurial potential is identified, resources can be channeled and more effectively used to promote entrepreneurship. Finally, diagnosis and treatment of ESE can be performed on real entrepreneurs. The entrepreneur may be completely avoiding, or performing less frequently, certain critical entrepreneurial activities because s/he lacks self-efficacy. For example, the entrepreneur may be avoiding company growth for fear of losing control. Identification and removal of self-doubt will enable the entrepreneur to be actively engaged in entrepreneurial tasks, more persistent in the face of difficulty and setbacks, and more confident in meeting challenges.Overall, ESE is a moderately stable belief and requires systematic and continuous efforts to be changed. Two broad approaches can be taken toward desired change. One is the micro-approach that directly focuses on people’s beliefs. In designing and conducting entrepreneurship courses, training institutions should not just train students in critical entrepreneurial skills and capabilities but also strengthen their entrepreneurial self-efficacy. The current state of entrepreneurship courses in most management schools may fall short in both respects. Courses focus on commonly identified management skills, but often ignore entrepreneurial skills such as innovation and risk-taking. Furthermore, the teaching of entrepreneurial skills tends to be technical, with insufficient attention paid to the cognition and belief systems of the entrepreneur. Educators should take into account entrepreneurial attitudes and perceptions when designing or assessing their course objectives. Conscious efforts could be made to enhance ESE by involving the students in “real-life” business design or community small business assistance, by inviting successful entrepreneurs to lecture, and by verbal persuasion from the instructor and renowned entrepreneurs.The second approach to enhancing ESE is to work on the environment of potential and actual entrepreneurs. According to the reciprocal causation model, the environment may affect self-efficacy not only directly but also indirectly through performance. An environment perceived to be more supportive will increase entrepreneurial self-efficacy because individuals assess their entrepreneurial capacities in reference to perceived resources, opportunities, and obstacles existing in the environment. Personal efficacy is more likely to be developed and sustained in a supportive environment than in an adverse one. A supportive environment is also more likely to breed entrepreneurial success, which in turn further enhances entrepreneurial self-efficacy. Communities can work toward creating an efficacy enhancing environment by making resources both available and visible, publicizing entrepreneurial successes, increasing the diversity of opportunities, and avoiding policies that create real or perceived obstacles.     

The Bathsheba Syndrome: The ethical failure of successful leaders

Reports of ethical violations by upper level managers continue to multiply despite increasing attention being given to ethics by firms and business schools. Much of the analysis of these violations focuses on either these managers'lack of operational principles or their willingness to abandon principles in the face ofcompetitive pressures. Much of the attention by firms and business schools focuses either on the articulation of operational principles (a deontological approach) or on the training of managers to sort their way through subtle ethical dilemmas in the face of competitive pressure (a utilitarian approach). While valuable, these approaches alone are incomplete. This paper suggests that many ethical violations by upper managers are the by-product ofsuccess — not of competitive pressures. Our research suggests that many managers are poorly prepared to deal with success. First, success often allows managers to becomecomplacent and to lose focus, diverting attention to things other than the management of their business. Second, success, whether personal or organizational, often leads toprivileged access to information, people or objects. Third, with success usually comes increasinglyunrestrained control of organizational resources. And fourth, success can inflate a manager's belief in his or her personalability to manipulate outcomes. Even individuals with a highly developed moral sense can be challenged (tempted?) by the “opportunities” resulting from the convergence of these dynamics. We label the inability to cope with and respond to the by-products of success “the Bathsheba Syndrome,” based on the account of the good King David (a story familiar in a variety of traditions). Recognition of this phenomenon implies that we change or broaden our approach to the teaching of business ethics. It also implies that organizations must re-evaluate and change structures, procedures, and practices which enhance the likelihood of managers falling victim to the Bathsheba Syndrome.     

The Role of Perceived University Support in the Formation of Students' Entrepreneurial Intention

Entrepreneurship education is central to student entrepreneurship. Previous research has attempted to understand the role of entrepreneurship education in the formation of students' entrepreneurial intention and behavior, albeit in an isolated manner. Universities can support entrepreneurship in many ways, but it is important to measure students' perception of the support that they receive in order to understand the extent of such support and its impact on students. The current study proposed and tested an integrative, multiperspective framework. We have hypothesized that the three dimensions of university support, that is, perceived educational support, concept development support, and business development support, together with institutional support, shape students' entrepreneurial self‐efficacy. In turn, entrepreneurial self‐efficacy and individual motivations constitute the fundamental elements of the intention to start a business. A sample of 805 university students took part in the study and data were analyzed using structural equation modeling. Our findings showed that perceived educational support exerted the highest influence on entrepreneurial self‐efficacy, followed by concept development support, business development support, and institutional support. Self‐efficacy in turn had a significant effect on entrepreneurial intention. Individual motivations such as self‐realization, recognition, and role had an additional impact on intention. However, intention was not related to financial success, innovation, and independence. The findings suggest that a holistic perspective provides a more meaningful understanding of the role of perceived university support in the formation of students' entrepreneurial intention. Theoretical and practical implications are discussed.     

Exploring the role played by entrepreneurial self-efficacy among women entrepreneurs in tourism sector

This study aimed to explore how entrepreneurial self-efficacy impacts firms' performance among women entrepreneurs in developing countries in tourism and hospitality industry. Survey data collected from women entrepreneurs in Sri Lanka confirmed entrepreneurial self-efficacy is influenced by social media, entrepreneurial passion and entrepreneurial role models, whereas education and work experience had no influence over entrepreneurial self-efficacy. The mediating behavior of entrepreneurial persistence behavior is confirmed. For entrepreneurship stakeholders, this research revealed a critical factor that entrepreneurial self-efficacy is influenced by social media in digital world of technologies. Moreover, this research provided a validated model of entrepreneurial self-efficacy, enhancing its usage during the adversity or growth stages of business while producing valuable insights to policy makers in developing countries, enhancing women entrepreneurs’ contribution to the economy.     

Integrating Foreign Languages and Cultures into U.S. International Business Programs: Best Practices and Future Considerations

This paper describes the importance of foreign languages and cultures and their integration into U.S. international business programs. The author juxtaposes globalization strategies of European and American business schools and highlights pre-university foreign language study in Europe and the U.S. The paper goes on to describe model U.S. undergraduate and graduate international business programs and their use of strategies that lead to professional proficiency. The author concludes with a discussion of strategies to be considered by U.S. business schools.     

Construction of owner–manager identity in corporate social responsibility discourse

This article examines the different discursive resources on which small business owner–managers draw when understanding their sense of self in relation to corporate social responsibility. In the small business context, identity provides a justifiable framework to study corporate social responsibility, as decisions regarding socially responsible activities are mainly taken by managers and stem from their sense of who they are in the world. On the basis of 25 thematic interviews with owner–managers, two broad discursive resources were found that describe how they actively seek to create and legitimise their sense of self within the discussion on corporate social responsibility. These discursive resources are called being altruistic and being instrumental. The findings emphasise that the essential and also the most challenging feature in small business owner–managers' identity work is the process of reconciling economic values with the social and ethical aspects of business life.     

Entrepreneurial inception: The role of imprinting in entrepreneurial action

Recent research highlights that founders' early decisions and the environmental conditions at founding each imprint upon a new venture in ways that affect growth and survival. However, we know much less about how the entrepreneur is imprinted and how the outcome of this imprinting process influences the entrepreneur and the venture. Through semi-structured interviews and content analysis, our study examines entrepreneurs' formative experiences during sensitive periods of transition, which we refer to as sources of imprint. We illustrate how these sources of imprint impact entrepreneurial decision making and explain how they guide entrepreneurs' decisions as they progress through their entrepreneurial careers. In doing so, we improve our understanding of how entrepreneurs navigate the entrepreneurial process.     

Knowledge,Skills, and Abilities for the Market Economy: An Investigation of Student Perceptions Before and After China's WTO Entry

This exploratory study conducted in the People's Republic of China sought to determine the managerial knowledge, skills, and abilities (KSAs) that are perceived as important for the Chinese market economy. Questionnaire responses were collected from 145 business students in 2001 (before China's WTO entry) and 141 business students in 2006 (after China's WTO entry). The identified set of eight managerial knowledge, skills, and abilities included: business area knowledge and skills, communication skills, creativity/adaptability, ethics, leadership, problem solving, teamwork, and work habits. For each time period examined, the mean score for “importance” of each KSA was significantly higher than the mean score for “presence.” The differences between the importance mean and the presence mean for each KSA was denoted as a “gap.” This study revealed that five of the eight KSAs had a significantly smaller gap in 2006 than in 2001. This suggests that the business education system in China is enabling the development of more effective managers for the Chinese market economy.     

Effects of managers' entrepreneurial behavior on subordinates

The recent surge of interest in promoting corporate entrepreneurship seems linked to a growing body of empirical evidence of a positive relationship between a firm's entrepreneurial orientation and its improved financial performance. Logical induction suggests that organizations that promote corporate entrepreneurship must employ managers who are entrepreneurial in their behaviors. By extension, it would seem that managers who are entrepreneurial must have a positive impact on their subordinates if the organization's entrepreneurial initiatives are to be successful. Unfortunately, despite the implicit appeal of this logic, what would “seem” to be true has not yet been substantiated empirically.To address this shortcoming and to provide managers with information from which to judge their efforts to promote corporate entrepreneurship, research was undertaken to address two specific research questions:

• 1.1. What behaviors distinguish managers who exhibit an entrepreneurial orientation?
• 2.2. How do subordinates judge the actions of managers who work for an organizational metamorphosis to an entrepreneurial model of management?

Providing a rigorous assessment of these issues necessitated the selection of a setting not typically seen as receptive to entrepreneurial initiatives. Thus, the data were collected from the two largest units of an electric utility system, one with 8,000 employees and $2.847 billion in 1992 revenues and the other with 10,000 employees and $4.297 billion in 1992 revenues. Together, these units employed 60% of the corporate staff and generated 89% of total corporate revenues.Because of the perception of the company's top management that the prospect of deregulation, if not its inevitability, threatened the viability of the company's traditional management style, executives considered specific programs to become more competitive. They formulated a plan for the long-term development of an entrepreneurial organization based on the belief of the company's executives that its future success required fundamental change in corporate culture and competitive posture.To track the evolution of its managers toward an entrepreneurial orientation, the company used two survey instruments developed with and administered by executives of the company to monitor each manager's progress and to evaluate its impact.To assess the types and frequency of entrepreneurial behaviors among managers, a theoretically driven, management “behaviors” questionnaire was developed. Eleven of its items were designed to assess entrepreneurial behavior as a distinguishable subset of generally advocated management practice. This survey was administered by the company to all 833 immediate subordinates of each of 102 individual managers.A second survey instrument, completed approximately 6 months after the behaviors questionnaire, was used to assess the “effects” of the managers' behaviors. Of particular interest were 12 questions from this instrument that measured the satisfaction levels of the 102 managers' 1,522 immediate and second level subordinates with the supervision that they received, i.e., the 12 items provided an indication of the effects of managers' entrepreneurial behaviors on their subordinates' satisfaction with the managers.The results of the data analyses support the idea that managers who are entrepreneurial in their behavior have a positive impact on their subordinates' satisfaction with their supervisors. The results indicate that as entrepreneurial behaviors increased, subordinates' satisfaction with supervision increased. Whereas 62% of the subordinates of entrepreneurial managers reported high levels of satisfaction with their supervisors, 69% of subordinates of bureaucratic managers reported low levels of satisfaction with their supervisors. Further analysis indicated that eight of 11 of the “behaviors” survey items were able to discriminate high and low subordinate satisfaction. This demonstrated that the scale developed through this research is robust in the measurement of entrepreneurial behaviors of managers.The major contributions of this study were in the development and validation of a scale that can be used to gauge entrepreneurial behaviors, and the finding that corporate entrepreneurship, as gauged by these behaviors, was well received by subordinates even when entrepreneurial management was counter to its organization's preexisting culture.     

Impact of International Business Education on Ethnocentricity

Abstract

As evidenced by recent surveys of American managers, there is a serious shortage of qualified candidates on the US job market. This shortage is most evident in two specialization areas: high-technology knowledge workers and internationally competent managers. Indeed, American companies rate lack of qualified high-technology personnel as their number one reason for slower than desired business expansion. The other less glamorized, yet serious shortcoming of the American educational system is its inadequate training of cross-culturally competent workers for this truly global post-industrial era. In response to this human resources crisis, realizing that “the future economic welfare of the US will depend substantially on increasing international skills in the business community,” the United States Department of Education began an active campaign of promoting international education and research in several major American universities in the late 1980s. Since 1988, nearly 40 universities have been awarded tens of millions of dollars to engage in such activities as developing formal international business curricula, offering foreign language courses, promoting internationally-oriented research, provoking international education and research dialogues among the faculty, exchange programs between American and foreign universities for students and the faculty and similar activities. This research is a first attempt in evaluating the impact of one such program on the internationalization level of American students. It will be shown that the international education program at one major American university has successfully produced a cadre of more global and less ethnocentric workforce for American corporations.     

Transfer of management knowhow to developing countries: An empirical investigation

This article examines the transfer of management knowhow to developing countries through managers who undertake a graduate program in business at an advanced country. Based upon a study of 67 Turkish managers, all of whom received a master's degree in business in the United States, the article addresses three issues: What are the differences in the local applicability of various management skills (including marketing) which were acquired in an advanced country? What company and individual manager characteristics are associated with the local application of these management skills? What principal factors impede the transfer of management knowhow to an indigeneous organization?     

Business education and entrepreneurial skills: Evidence from Arab universities

The authors aimed to investigate business undergraduates’ cognition toward entrepreneurship; in particular, they examined four entrepreneurship skills. Data consist of questionnaire responses obtained from 668 undergraduates attending universities in two different Arab countries. The study used a logistic regression to gauge the effect of delivering four entrepreneurial skills on entrepreneurship cognition. The results reveal that business students perceive the four entrepreneurial skills as key elements for starting their own business.