The course in business ethics: Can it work?

An examination of ninety-nine syllabi for undergraduate courses in business ethics, collected by the Center for Business Ethics at Bentley College, reveals that half the courses are offered to freshmen and sophomores. Because of the fact that these students will have minimal knowledge of the functional areas of business firms, and because these courses rely heavily on case analysis, it is likely that the students in these courses are not able to deal effectively with the material in the course. Therefore, any expectation that the business ethics course will raise the students' ethical sensitivity when considering business problems or decisions is unrealistic.Dr. Pamental teaches Business, Government and Society and Business Ethics in Literature at Rhode Island College, and is a Research Fellow of the Center for Business Ethics at Bentley College. He has written extensively on the subject of business ethics and its relationship to business programs.     

Are corporations institutionalizing ethics?

Very little has been done to find out what corporations have done to build ethical values into their organizations. In this report on a survey of 1984 Fortune 1000 industrial and service companies the Center for Business Ethics reveals some facts regarding codes of ethics, ethics committees, social audits, ethics training programs, boards of directors, and other areas where corporations might institutionalize ethics. Based on the survey, the Center for Business Ethics is convinced that corporations are beginning to take steps to institutionalize ethics, while recognizing that in most cases more specific mechanisms and strategies need to be implemented to make their ethics efforts truly effective.Established in 1976, The Center for Business Ethics at Bentley College is dedicated to providing a nonpartisan forum for the exchange of ideas on business ethics in an industrial society. Special emphasis is placed on these ideas as they relate to the activities of corporations, labor, government, special interest groups, and the professions. The Center sponsors National Conferences on Business Ethics, publishes their proceedings, works with academic institutions and corporations to set up business ethics courses and programs, and generally serves as a clearing house for ideas and materials on business ethics.The report and survey were prepared by the following people from the Center for Business Ethics: W. Michael Hoffman, Director; Ann Lange, Research Associate; Jennifer Mills Moore, Research Associate; Karen Donovan, Graduate Assistant; Paulette Mungillo, Aileene McDonagh, Paula Vanetti, Linda Ledoux, Staff Assistants.     

Business Ethics Training: Face-to-face and at a Distance

An 11-week hybrid distance learning/personal contact ethics training program, customized for a leading information technology firm, is described in the format of a sequential process. The process is grounded on discourse ethics and the ethics training guidelines premised by the Hastings Institute. Indications from the firm and from the program’s participants are that the training has been beneficial. Warren French is the Cousins Professor of Business Ethics at the Terry College of Business, University of Georgia. He also serves as a visiting faculty member at the Universite Jean Moulin Lyon III where he teaches business ethics. His research area is conflict resolution through discourse ethics.     

FOCUS: Practical Reflections on Teaching Business Ethics to Undergraduates

Teaching business ethics to undergraduates has disclosed difficulties for both students and teacher which raise deeper issues about what is the purpose of teaching ethics and of engaging in business. The author is Lecturer in Business Ethics in the Faculty of Business and Social Studies, Cheltenham & Gloucester College of Higher Education, Swindon Road, Cheltenham, Glos GL50 4AZ, UK.     

The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research. Muel Kaptein is Professor of Business Ethics and Integrity Management at the Department of Business-Society Management at RSM Erasmus University. His research interests include the management of ethics, the measurement of ethics and the ethics of management. He has published papers in the Journal of Business Ethics, Business & Society, Organization Studies, Academy of Management Review, Business & Society Review, Corporate Governance, Policing, Public Integrity, and European Management Journal. He is the author of the books Ethics Management (Kluwer Academic Publishers, 1998),The Balanced Company (Oxford University Press, 2002), and The Six Principles of Managing with Integrity (Spiro Press, 2005). Muel is also director at KPMG Integrity, where he assisted more than 40 companies in developing their business code. Mark S. Schwartz is Assistant Professor of Goverance, Law and Ethics at the Atkinson School of Administrative Studies at York University (Toronto). His research interests include corporate ethics programs, ethical leadership, and corporate social responsibility. He has published papers in the Journal of Business Ethics, Business & Society, Business Ethics Quarterly, Professional Ethics, and the Journal of Management History, and is a co-author of the textbook Business Ethics: Readings and Cases in Corporate Morality (McGraw Hill). He is also a Research Fellow of the Center of Business Ethics (Bentley College) and the Business Ethics Center of Jerusalem (Jerusalem College of Technology).     

Promoting moral growth through intra-group participation

Currently, an emphasis is being placed on the integration of ethical issues into the business curriculum. This paper investigates the viability of using student group interaction to induce an upward movement in the stages of moral development as advanced by Kohlberg. The results of a classroom experiment using graduate business law students suggest that formulating groups that mix stages of moral development can provide a robust environment for upward movement. In addition, the results suggest strategies for formulating effective groups, based upon entry levels as measured by the Defining Issues Test.The ultimate goal of moral education is to produce people who can reason in philosophically adequate ways; who can formulate plans of action even under stress, or when experiencing conflicting values and situational pressures; and who will actually follow through behaviorally on such plans.Donald R. Nelson, J. D., is Associate Dean, The College of Business Administration at The University of Denver, where he also serves as course coordinator and teaches Business Ethics and Social Responsibility in the MBA program. He has authored articles on ethics and moral education and currently serves as Chair of the Business Ethics Section of the American Business Law Association.Dr. Tom Obremski is currently Associate Professor of Statistics and Operations Research at The University of Denver. He is the author of several articles and books in the area of applied statistical methodology. Dr. Obremski has been very active in integrating ethics throughout the MBA curriculum at Denver University.     

FOCUS: A Comparison of Business Ethics in North America and Continental Europe

The author of this major study compares the significantly different approaches to business ethics on both sides of the Atlantic and considers what they have to learn from each other. He has considerable experience of business ethics in both Europe and North America, having taught and researched the subject at the University of St Gallen in his native Switzerland before his appointment as Professor of International Business Ethics in the College of Business Administration, University of Notre Dame, Indiana 46556, USA. Professor Enderle was also the founding Honorary Treasurer of the European Business Ethics Network and is an Associate Editor of this Review.     

Principal Theory and Principle Theory: Ethical Governance from the Follower’s Perspective

Organizational governance has historically focused around the perspective of principals and managers and has traditionally pursued the goal of maximizing owner wealth. This paper suggests that organizational governance can profitably be viewed from the ethical perspective of organizational followers – employees of the organization to whom important ethical duties are also owed. We present two perspectives of organizational governance: Principal Theory that suggests that organizational owners and managers can often be ethically opportunistic and take advantage of employees who serve them and Principle Theory that focuses on guiding principles that are sometimes taken too far in organizations. In introducing these two new organizational governance perspectives, we offer insights into the value of rethinking ethical duties owed to organizational followers. Cam Caldwell received his Ph.D. from Washington State University where he was a Thomas S. Foley Graduate Fellow. Dr. Caldwell is Editor of the Academy of Management Ethics website and a member of the Academy’s Ethics Committee. His research is primarily in the areas of ethical leadership, organizational governance, and developing organizational trust. Prior to obtaining his Ph.D., Caldwell worked for 25 years as a city manager, human resource director, and management consultant. Ranjan Karri is Assistant Professor of Management at Bryant College. He received his Ph.D. in strategic management from Washington State University. His research interests include corporate and business strategies, ethical leadership and corporate governance. Pamela Vollmar is an undergraduate student at the University of Houston – Victoria majoring in Business Management. She has worked for 25 years as an electrical specialist for a major engineering firm.     

Ethical Leadership for the Professions: Fostering a Moral Community

This paper examines the professions as examples of “moral community” and explores how professional leaders possessed of moral intelligence can make a contribution to enhance the ethical fabric of their communities. The paper offers a model of ethical leadership in the professional business sector that will improve our understanding of how ethical behavior in the professions confers legitimacy and sustainability necessary to achieving the professions’ goals, and how a leadership approach to ethics can serve as an effective tool for the dissemination of moral values in the organization. Dr. Linda M. Sama is Director of the Center for International Business Development and Associate Professor of Management at Pace University’s Lubin School of Business. She earned her Ph.D. in Strategic management from the City University of New York and her MBA in International Finance from McGill University. She was awarded the 1999 Lasdon Dissertation Award for her doctoral dissertation on corporate social response strategies and the Abraham Briloff Award of Best Paper in Business Ethics at the City University of New York in 1998. Dr. Sama made a transition to academe after a lengthy career in industry, where she acted as Director of Market Planning and Logistics for a major international subsidiary of Transamerica Corporation. She teaches primarily in the areas of International Business, Strategic Managements and Business Ethics, and has taught at Baruch College and the University of Texas at El Paso (UTEP) prior to coming to Pace in the fall of 2001. At UTEP, she was designated as the Skno International Business Ethics Scholar from 1999–2001. She has published numerous articles and book chapters that address issues of corporate social responsibility, business and the natural environment, integrative social contracts theory, and business ethics dilemmas in the new economy. Her research appears in journals such as The Journal of Business Ethics, Business Ethics Quarterly, Business and Society Review, The Journal of Cross-Cultural Management, and the International Journal of Value-Based Management. She has also published research for the U.S. Department of Transportation related to the effects of NAFTA on U.S. – Mexico border logistics and has consulted to business clients on Strategic Planning, Global Leadership and Business Ethics. Dr. Victoria Shoaf is an Associate Professor and Assistant Chair of the Department of Accounting and Taxation at St. John’s University. She received her Ph.D. in Business, with a specialization in Accounting, from Baruch College of the City University of New York in 1997; she was awarded the 1997 Lasdon Dissertation Award. Prior to joining St. John’s University on a full-time basis, Dr.Shoaf worked for over fifteen years in the retail industry with merchandising firms. Her expertise is in establishing effective accounting systems and controls, including operational functions such as order entry and fulfillment, inventory control, point-of-sale data transfers and sales audit, as well as financial accounting functions. She has held controllership positions at Laura Ashley, Inc., Greeff Fabrics, Inc., and Tie Rack, Inc. While working in industry and while completing her doctoral degree, Dr. Shoaf taught accounting courses as an adjunct instructor at Pace University and at Baruch College. She received a commendation from the dean at Pace University for teaching excellence, and she was awarded a Graduate Teaching Fellowship at Baruch College. She currently serves on several professional committees, and she has provided consulting services in accounting education and training programs for several large employers.     

Serving the homeless and low-income communities through Business & Society/Business Ethics class projects: The University of Wisconsin-Madison plan

For several years, MBA students enrolled in a Business & Society/Business Ethics class at the University of Wisconsin-Madison have been volunteering their services at homeless shelters and in low-income communities. Students also work with low-income residents and relevant stakeholders on evolutionary team projects aimed at improving living conditions in low-income communities. These projects include starting a grocery co-op, credit union, day-care center, job training center and a transportation business. In addition, student groups develop service networks that link low-income communities with student organizations, other university professors and United Way volunteers. This article provides an evolutionary summary of these projects with the hope that other professors will adopt them for their classes. Denis Collins is an Assistant Professor of Business Ethics at the University of Wisconsin-Madison. He has published numerous articles in the areas of business ethics, business and society, social philosophy, participatory management and gainsharing. He is coauthor, with Thomas O'Rourke, of Ethical Dilemmas in Business (South-Western Publishing, 1994) and coeditor, with Mark Starik, of Sustaining the Natural Environment: Empirical Studies on the Interface Between Nature and Organizations (JAI Press, 1995).     

Impacts of Teaching Business Ethics in Korea

This is the first study on the impact of teaching business ethics in a typical Asian culture, Korea. Eight scenarios involving business decision were administered to undergraduate management major students before (n = 120) and after (n = 128) a semester course titled Business Ethics, with control group (n = 91 before and after). The analysis indicated that teaching business ethics has positive impacts on the student as a whole, especially on younger male students who had no work experience.     

Student stereotypes of business National sample contains message for analysts

The allegations that college attendance causes a business career to appear undesirable are unfounded, according to the results of a recent survey. The data show that students come with probusiness or antibusiness opinions already formed. The national sample of 4,000 high school students also disclosed that their feeling depends on whether they are thinking of business as a career or as an organizational setting for a career not directly in management. They also consider the size of the firm (big business is preferred for salary and advancement, and small business for “lasting friendship”). Business is favored by more boys than girls, and by more students from backgrounds low on the socioeconomic scale. Planners, recruiters, and analysts need to be aware of these student perceptions.     

The individual investor in securities markets: An ethical analysis

In this paper we consider whether one type of individual investor, which we call at risk investors, should be denied access to securities markets to prevent them from suffering serious financial harm. We consider one kind of paternalistic justification for prohibiting at risk investors from participating in securities markets, and argue that it is not successful. We then argue that restricting access to markets is justified in some circumstances to protect the rights of at risk investors. We conclude with some suggestions about how this might be done.Robert E. Frederick is Assistant Professor of Philosophy at Bentley College and Assistant Director of the Center for Business Ethics. Before coming to Bentley College he worked at a large financial institution for nine years, where he was Vice President for Administrative Services. Dr. Frederick has authored or co-authored over fifteen articles and has co-edited four books. He has consulted on business ethics for several major corporations. W. Michael Hoffman is the founding Director of the Center for Business Ethics, and Professor and Chair of the Department of Philosophy at Bentley College, Waltham, MA. He was President of the Society for Business Ethics in 1989. He has authored or edited ten books, including Business Ethics: Readings and Cases in Corporate Morality (McGraw-Hill, 1984; 1990) and published over thirty articles. He has consulted on business ethics for many major corporations and institutions of higher learning, and he serves on the board of several journals.     

Internationalizing the business ethics curriculum: A survey

This article reports on a telephone survey of business school faculty in the United Kingdom, Asia and North America concerning efforts to internationalize the teaching of business ethics. International dimensions of business ethics are currently given only limited coverage in the business school curriculum with over half of the faculty surveyed indicating that less then 10% of their ethics teaching focuses on global issues. Teaching objectives vary widely with some faculty emphasizing a relativistic, diversity oriented perspective while others stress the universality of values. The respondents identified a great need to develop teaching materials based upon non-U.S. corporations and/or non-U.S. incidents.Christopher J. Cowton is University Lecturer in Management Studies at the University of Oxford and a Fellow of Templeton College. An author on many facets of management, his previous paper in theJournal of Business Ethics was on corporate philanthropy in the United Kingdom. Current research interests include the implications of just-in-time production for accounting, and ethical (or socially responsible) investment.Thomas W. Dunfee is the Kolodny Professor of Social Responsibility at the Wharton School of the University of Pennsylvania. He was President of the American Business Law Association 1989–1990, served as Editor-in-Chief of theAmerican Business Law Journal 1975–1977 and is a member of the Executive Committee of the Society for Business Ethics. He has published articles in theAcademy of Management Review, Business Ethics Quarterly, theBusiness and Professional Ethics Journal, and theJournal of Social Philosophy in addition to a variety of business and legal journals.     

There is relevance in the classroom: Analysis of present methods of teaching business ethics

In 1988 the Journal of Business Ethics published a paper by David Mathison entitled Business Ethics Cases and Decision Models: A Call for Relevancy in the Classroom. Mathison argued that the present methods of teaching business ethics may be inappropriate for MBA students. He believes that faculty are teaching at one decision-making level and that students are and will be functioning on another (lower) level. The purpose of this paper is to respond to Mathison's arguments and offer support for the present methods and materials used to teach Master level ethics classes. The support includes suggested class discussion ideas and assignments.Victoria K. Strong is a graduate student at Bentley College. She returned to school to pursue a Master of Science in Accountancy after working in the engineering profession for 12 years. She received her B.S. in Mechanical Engineering in 1984. Her business experience includes positions as Mechanical Design Engineer and Unit Supervisor of an engineering development laboratory. Alan N. Hoffman is an Associate Professor of Management at Bentley College. He received his DBA from Indiana University. Dr. Hoffman's writing has been published in the Academy of Management Journal and Human Relations.The authors would like to thank Carolyn Colt and the entire spring 1988 MG520-class for their valuable contributions.     

The behavior of the NCAA: A question of ethics

The National Collegiate Athletic Association (NCAA) is commonly viewed as a safety net for individual athletes, for universities, and for inter-collegiate sports programs. They help reduce injury to athletes, they participate in the marketing of athletic events, and they continue to change the rules of college sport to make it more fun for the spectators. There is another view that argues the NCAA is a buyers' cartel or monopsonist that engages in price-fixing for colleges and universities. The prices they fix are the wages of student athletes and they accomplish this through regulations that prohibit the athlete from receiving any income other than in-kind scholarship payments. Students who receive other kinds of scholarships are not subject to these same restrictions. For example, students who receive scholarships in music can and do augment their income by performing for pay. It is the opinion of some that these price fixing scholarship agreements limiting the income of student athletes discriminates against a whole class of scholarship recipients. They also believe that this kind of behavior on the part of colleges and universities that make up the membership of the NCAA is highly unethical and may even be illegal.John Stieber is a professor in the Department of Finance at the Edwin L. Cox School of Business located on the campus of Southern Methodist University. He teaches Economics, Finance, and Business Ethics; he has published several articles about the behavioral aspects of economic efficiency; he has designed courses in Business Ethics at both the undergraduate and graduate levels; and he has served as a consultant to several national firms.     

Emotion As Well As Reason: Getting Students Beyond "Interpersonal Accountability"

The paper notes the recent spread of business ethics courses in American higher education, observing that teachers trained in economics have not readily incorporated ethical notions or theory into regular courses, such as finance, management, accounting, and marketing. The presumed ethically neutral, value-free approach of economists, who dominate business courses, is increasingly inadequate to meet the needs of business managers – or of business students. Technological and political changes, creating an interdependent environment within which managers operate, have eroded older ethics based on tradition and common backgrounds. They have also raised ethical issues of new orders of complexity. With corporate business managers finding ethical concerns more pressing matters than do many teachers, the paper offers some tentative answers to three questions about how to interest business students in ethical issues: What Approach to Business Ethics Gets student's Attention? What Is the Value of Simulations and Games? What Can Be Said About the Business System And Its Values? The answer to the first question is simulations and games. Case method analysis is serviceable, engaging students' intellect, but all too often without emotional involvement or self-revelation. Experiential learning through class-room games accomplish both engagement and involvement in ways that are exceedingly helpful to business students, who have had "less occasion for critical reflection on self and world than have others of their age." The answer to the second question is: They engage the whole student, stimulating the player to examine the source of her ethical strengths and the reasons for ethical lapses. Generating emotional involvement the games leverage and enhance reasoning, allowing students to learn more about their own values and question their own behavior. The answer to the third question is: A socially justifiable (community-legitimated) competitive market system requires of its managerial participants an emotionally informed response – as well as a rational analysis and use of business techniques. Business operates with enhanced effectiveness efficiency at appropriate levels of such virtues as loyalty, trustworthiness and cooperativeness; they ensure externality benefits as well as promote justice for its own ultimate social justification.     

Unravelling the ethical decision-making process: Clues from an empirical study comparingFortune 1 000 executives and MBA students

Using a nationwide survey, this study compared the ethical values and decision processes ofFortune executives and MBA students. Statistically significant differences in ethical values were found by class of respondent, gender, and professed decision approach. MBAs were also found to process ethical decisions differently than business professionals.James R. Harris is Associate Professor of Marketing at Auburn University. He has published in theJournal of Business Ethics, Journal of Marketing Research, Journal of Retailing, Business and Professional Ethics Journal, and elsewhere. He has taught the Legal and Social Environment course at the graduate level for a number of years.Charlotte D. Sutton is Assistant Dean for Graduate Programs at the College of Business, Auburn University. Her research on such topics as women in management, stress and interpersonal communication has been cited in such places as ABC News, Good Morning America,Wall Street Journal, Newsweek, andBusiness Week.     

Technology and Business Ethics Theory

The various theories about business ethics need to take much more notice of technology, realising that technology has its own increasing momentum which is driving business, and that, whereas business people think they control technology as a simple neutral means to their ends, in fact the reverse is true: business is the servant of technological development. Jacques Ellul, however, offers some hope for the future to help us 'reappropriate our humanity'. Dr Davies is a senior lecturer in Strategic Management and Business Ethics at the Buckingham Business School, Buckinghamshire College [a College of Brunel University], Newland Park Campus, Gorelands Lane, Chalfton-St-Giles, Buckinghamshire HP8 4PB (Tel 01494-874441, ext. 2240; fax 01494-874230; Email pdavie01@buckscol.ac.uk). His background is in mining and production engineering and he would like to hear from others interested in the new field of engineering ethics.