Students' and Faculty Members' Perceptions of the Importance of Business Ethics and Accounting Ethics Education: Is There an Expectations Gap?

Despite a wealth of prior research (e.g., Wynd and Mager, 1989; Weber, 1990; Harris, 1991; Harris and Guffey, 1991; McCabe et al., 1991; Murphy and Boatright, 1994; Gautschi and Jones, 1998), little consensus has arisen about the goals and effectiveness of business ethics education. Additionally, accounting academics have recently been questioned as to their commitment to accounting ethics education (Gunz and McCutcheon, 1998). The current study examines whether accounting students' perceptions of business ethics and the goals of accounting ethics education are fundamentally different from the perceptions of accounting faculty members. The study uses a survey instrument to elicit student and faculty responses to various questions concerning the importance of business ethics and accounting ethics education. Statistical analyses indicate that students consider both business ethics and the goals of accounting ethics education to be more important than faculty members. Implications of these results for accounting faculty members interested in accounting ethics education are discussed.     

Application and Assessment of an Ethics Presentation for Accounting and Business Classes

This paper describes a presentation on ethics for accounting and business students. In 2001 and 2002, major corporate failures such as Enron and Worldcom, combined with questionable accounting practices, made ethics a paramount concern to persons working in business and accounting. While financial statement analysis and regulatory requirements are important technical topics, the issue of ethics provides faculty a unique and very appropriate setting to discuss deeper truths about doing business and living life well. This paper briefly describes the development and assessment of one approach to presenting ethics built around a computerized slide show (PowerPoint). The goal of the presentation is to increase students’ understanding of the essential role of ethics to accounting and business. Following the presentation, students indicated a heightened recognition of the importance of ethics. Educators should do all that they can to encourage students to do the “right” thing, even in difficult circumstances. This encouragement may serve them well in school and later in their careers.     

Business Ethics and the Idea of a Higher Education

The role of business ethics within higher education is often discussed in relation to its relevance to the business context. However, this paper is concerned with the link between business ethics and Ronald Barnett's conception of a higher education. It is argued that business ethics is the best placed subject within the business curriculum to facilitate 'critical interdisciplinarity'; to enable students to think critically about the business knowledge they already possess drawing on philosophical and sociological perspectives. The legitimacy of the business curriculum within higher education remains a contentious issue. Business ethics has a central role to play in reconciling the business curriculum with notions of a liberal higher education. It is crucial to retain the 'critical' or 'subversive' role of business ethics to counter-balance the dominant 'managerialist' perspective of the business curriculum and demonstrate that the study of business can help fulfil expectations that a higher education in business can be 'emancipatory'.     

A Comparison of the Ethics of Convicted Felons and Graduate Business Students: Implications for Business Practice and Business Ethics Education

This research compares and contrasts the ethics of convicted felons in three midwestern United States prison systems with those of a cross section of MBA students from previous research. Building on and replicating seminal works in business ethics, this study identifies the differences and many similarities between students and inmates on several dimensions of ethics and values. Both groups expressed similar views of which ethical issues need attention from the business community, those constituencies that are most important to business firms, and perceptions of the ethics of other salient groups. When confronted with difficult ethical situations, inmates usually, although not always, tended to be more willing do what was asked and less willing to speak out regarding the conflict. Inmate priorities for ethical issues and constituency groups tended to be very similar to the MBA student sample. Implications for business practice and business ethics education are discussed.     

Australian Business Majors and Their Attitudes Toward the Teaching of Business Ethics

Seven hundred seventy-three questionnaires were completed by students enrolled in an undergraduate business administration program at a university in Victoria. The survey instrument was adapted from one used by Professor John Milton-Smith (1992) in his Australian Business Ethics Project. The results indicated that (a) students place importance on business ethics education, (b) students who have taken a business ethics course found that experience to be valuable, (c) students view ethical behavior as leading to positive outcomes for the corporation and (d) some measures are underway in Australian higher education and in the community at large to enhance learning in this area.     

Ethical Outcomes and Business Ethics: Toward Improving Business Ethics Education

Unethical conduct has reached crisis proportions in business (Walker et al., Wall Str J East Edn, 258(37):A1–A10, 2011) and on today’s college campuses (Burke et al., CPA J, 77(5):58–65, 2007). Despite the evidence that suggests that more than half of business students admit to dishonest practices (McCabe et al. 2006), only about 5 % of business school deans surveyed believe that dishonesty is a problem at their schools (Brown et al., Coll Stud J A, 44(2):299–308, 2010). In addition, the AACSB which establishes standards for accredited business schools has resisted the urging of deans and business experts to require business schools to teach an ethics class, and fewer than one-third of businesses schools now teach a business ethics course at the graduate or undergraduate levels (Swanson and Fisher, Advancing Business Ethics Education, 2008). In this paper we briefly introduce the status of business ethics education and report the results of a survey of business students, deans of the top business schools, and business ethics subject matter experts about ten ethical outcomes. We then offer five specific recommendations to encourage business ethics faculty and decision makers to improve the teaching of business ethics.     

Service Learning in Business Ethics

Those of us engaged in the education of future businesspersons need to ask about the efficacy of our efforts. The business person is, first and foremost, a member of the community, a citizen, attempting to meet the needs of that community by providing goods and services. The general public often perceives the businessperson as violating the ethical standards of the community. Business risks losing its social legitimacy by such activity. Universities are the appropriate institutions in which to inculcate the importance of ethics and should go as far as it can to influence the ethical reasoning of graduates. However, research suggests that the traditional way of integrating ethics education into required functional courses actually results in a decline in moral reasoning. It is suggested that ethics educating needs to be personalized based on the individual student and that there is a need for experiential learning methods which would supplement and enhance standard classroom based ethics education. An appropriate goal for business ethics courses would be to make students aware of the ethical and social dimensions of the business decision making process. I suggest that a service-learning pedagogy would be one way to educate the business student in ethics. An integrated service project stressing rights and responsibilities could create a feeling of what it means to be a member of a community and would emphasize the importance of social involvement. In this paper, I explore some of the roots of service in higher education and the efficacy of service-learning in business ethics.     

The Middle Path: Using Dual-Investor Theory in Teaching Business Ethics

Graduates of business ethics courses often fail to apply what they have learned to decisions in business life because, this study finds, neither stakeholder theory nor shareholder-oriented theories seem satisfactory – less than 7% of respondents felt either view achieved the best balance between social responsibility and making a profit. Dual-Investor theory offers students a framework within which to articulate and think through the ethical dimensions of business decisions, a framework 77.8% of respondents overall and 82.1% of business students claimed they were most likely to use in making their own decisions. The paper provides three sample cases illustrating the instructional advantages of Dual-Investor theory and points out several ways instructors might use Dual-Investor theory in business ethics courses.     

Teaching Business Ethics: The Role of Ethics in Business and in Business Education

The paper begins with an examination of traditional attitudes towards business ethics. I suggest that these attitudes fail to recognize that a principal function of ethics is to facilitate cooperation. Further that despite the emphasis on competition in modern market economies, business like all other forms of social activity is possible only where people are prepared to respect rules in the absence of which cooperation is rendered difficult or impossible. Rules or what I call the ethics of doing, however, constitute just one dimension of ethics. A second has to do with what we see and how we see it; a third with who we or what I describe as the ethics of being. Of these three dimensions, the first and the third have been most carefully explored by philosophers and are most frequently the focus of attention when teaching business ethics is being discussed. I argue that this focus is unfortunate in as much as it is the second dimension which falls most naturally into the ambit of modern secular educational institutions. It is here that moral education is most obviously unavoidable, and most clearly justifiable in modern secular teaching environments. I conclude by describing the importance of this second dimension for the modern world of business.     

The Effect of Business Education on the Ethics of Students: An Empirical Assessment Controlling for Maturation

This study empirically assesses the relative impact of business education on students' ethics while accounting for the potentially confounding effects of maturation and starting position. It finds that business education does not negatively effect the ethical development of students relative to the effect caused by non-business education.     

Exposure to Ethics Education and the Perception of Linkage between Organizational Ethical Behavior and Business Outcomes

This study focused on the effects of individual characteristics and exposure to ethics education on perceptions of the linkage between organizational ethical practices and business outcomes. Using a stratified sampling approach, 817 students were randomly selected from a population of approximately 1310 business students in an AACSB accredited college of business. Three hundred and twenty eight of the subjects were freshmen, 380 were seniors, and 109 were working managers and professionals enrolled in a night-time MBA program. Overall, the respondents included 438 male students and 379 female students. Exposure to ethics in the curriculum had a significant impact on student perceptions of what should be the ideal linkages between organizational ethical practices and business outcomes. Gender based differences were found with female students having a higher expectation regarding what should be the “ethics practices and business outcomes” link. Exposure to ethics in the curriculum had a positive moderating influence on the gender-based effects on perceptions of ideal ethical climate. The interaction effect showed that exposure to ethical education may have a positive impact on males and allow them to catch up with females in their ethical sensitivities concerning the ideal linkage between organizational ethical behavior and business outcomes. Further, consistent with the literature, the study found that gender differences in ethical attitudes regarding the ideal ethical climate, while significant for undergraduates, appeared to narrow considerably for the working professionals who were part-time MBA students. Harsh Luthar is an Associate Professor of Management at Bryant University. He received his Ph.D. from Virginia Polytechnic University, Pamplin College of Business, in the Department of Management. His research interests include international differences and cross-cultural issues impacting global human resource practices, ethical attitudes of students, and the nature of spiritual leadership. Ranjan Karri is an Assistant Professor of Management at Bryant University. He received his Ph.D. in strategic management from Washington State University. His research interests include corporate and business strategies, enterpreneurship, ethical leadership and corporate governance.     

The Goals and Merits of a Business Ethics Competency Exam

My university recently established a business ethics competency exam for graduate business students. The exam is designed to test whether students can demonstrate several abilities that are indicative of competency in business ethics. They are the abilities to “speak the language” of business ethics, identify business ethics issues, apply theories and concepts to issues, identify connections among theories and concepts as they relate to different issues, and construct and critically evaluate arguments for various positions on business ethics issues. Through this paper, I hope to begin a discussion among business ethicists about both the merits of a competency exam and what the format of such an exam should be. I attempt to do this by explaining the reasons why my institution adopted a competency exam, the goals and purposes of the exam, the format of the exam, and why I believe the exam has merit.     

A Framework for Teaching Business Ethics

What ethical framework should be used as a basis for teaching business ethics? Should business ethics be taught by ethicists in a separate course, by business faculty in business courses, or perhaps by both? These are some of the issues this paper will address. The paper begins with a review of the literature concerning approaches to teaching business ethics. Next, some ethical frameworks for teaching business ethics are considered. Finally, the paper proposes that students should apply their own personal values to business ethical issues in the classroom, thus providing future business leaders with a process for resolving ethical dilemmas.     

A Propaedeutic for a Framework: Fostering Ethical Awareness in Undergraduate Business Students

Using the field of accounting as a locus forinquiry within undergraduate businesseducation, this paper proposes that studentsbeing trained in fields of business wouldbenefit from sustained formal exposure to theepistemological and anthropologicalperspectives of ethical systems. Without suchexposure, the ethics case studies presented inbusiness textbooks will not be as effective inachieving their goal of training undergraduatestudents to be ethical professionals. Studentsneed a substantive introduction to ethicalreasoning before they can fully appreciate theethical ramifications in a case study. Students have to be able to articulate thecriteria by which they will approach thequestions of applied ethics posed by the ethicsexercises appearing as the conclusion tochapters teaching not ethics but technicalinformation.This paper explores the ethical frameworkprovided by an intermediate accountingtextbook. It then analyzes theepistemologically and anthropologicallyinformed ethics of Bernard Lonergan and EdwardSchillebeeckx as examples of the introductoryethical reasoning needed to support textbookframeworks. A two-fold thesis guides thepaper: students equipped with a broader ethicalvision can learn more effectively from theethics cases presented in the textbooks, thusenhancing the value of those cases;consequently, students need more exposure toethics in an undergraduate business course ofstudy.     

Business Ethics in Latin America

Business ethics is a relatively new topic of academic discussion in Latin America. Corruption and impunity came to be serious moral diseases in the region, probably as a result of a long period of dictatorship in most countries. Low ethical standards in the politics have had deep impact on individuals, organizations and economic systems. Excessive consumption, materialism and selfishness, in contrast with real poverty, have been responsible for a sloppiness in attitudes and principles in many Latin American countries. Even though the majority of the population belongs to the Roman Catholic Church, the lack of education has led people to a dichotomy: faith and business practices are often very distant from each other. Several isolated efforts have been done in order to enhance business ethics through education, publications and professional activities. The relationship business-academia has proved to be an excellent initiative for this objective, mainly in Mexico, Brazil and Peru.     

From the Business Ethics Course to the Sustainable Curriculum

Universities want to prepare students intellectually so that they might eventually find successful, fulfilling work. Since work is synonymous with business – no work ever exists outside of business – one of the academy's primary goals is to help students enter the world of business, regardless of their majors. Many universities also declare within their mission statements a desire to cultivate a student body capable of making ethically informed decisions. Consequently we might conceptualize "business ethics" as not simply one field within the academic constellation, but rather the conceptual glue holding together the curriculum. And since the most significant new development in business within the past decade is arguably the emergence of theories of sustainable business practice, we would do well to consider the role business ethics can play in the creation of a new "sustainable curriculum."     

Building a Tender Nation: Developing a Web Based Accounting and Business Ethics Community

This paper marks the launch of a new accounting and business ethics Web project called Tender Nation. The objective of the site is to provide an emotionally supportive resource and community for the discussion of accounting and business ethics issues by accounting practitioners and accounting students. The paper explains the rationale behind the development of the site and is split into five sections. Section one develops a short critique of the development of the Web and discusses the extent to which it provides an opportunity for critical engagement in the economic sphere. Section two reviews the Web based accounting and business ethics resources currently available and draws on some well established ethical theory to explain how the objectives of Tender Nation differ from other Web based attempts to critically and ethically engage with the economic sphere. Section three provides an outline of the structure and content of the site. Section four presents a survey of students' initial responses to the Web site and the concluding section discusses plans to develop the project further.     

Business Ethics – to Teach Or Not to Teach?

While some studies have explored the effects of taking business ethics classes on business students, several shortcomings in them invite greater scrutiny of this critical issue (cf. Robertson, 1993). In contrast to previous research, this study more directly assesses the impact of taking business ethics class on ethical decisions made by future business executives. To determine if teaching business ethics modifies behaviors or behavioral intentions, the current study examines decisions made in ethical situations rather than inferring the same by measuring attitudes, values, etc. Furthermore, these were measured in three different business contexts: whistle blowing, recruitment, and industrial espionage, to enhance the generalizability of the findings. Finally, unlike most previous studies, a within-subject's design was chosen to eliminate confounds that may be caused by not controlling for individual differences (Glenn, 1992). The current results indicate that business ethics classes have minimal effect on ethical decision making in any of the three contexts investigated, empirically providing support for Wolfe's (1993) and Wynd and Mager's (1989) position that teaching business ethics may have limited benefits.     

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.     

Toward a Model for International Business Ethics

This paper briefly examines the topic of business ethics and attempts to suggest a code of ethics for multinational firms. While most companies have basic policies on employee integrity, confidentiality and sexual harassment, relatively few have established policies regarding bribery, exploitive child labor, human rights violations and other issues they may encounter in the global market place (Drake, 1998). Until recently, very few companies had truly global operations. Consequently little attention was paid to the issue of ethical guidelines in a global context. Recent changes in international markets have led to an explosion of corporations with global operations, and the need for a global code of ethics has grown commensurately. In this paper we explore the issue of global business ethics and attempt to provide a framework for future discussion. We also examine some of the unique difficulties surrounding the development of any set of global business standards. Key among these difficulties is the issue of competing ethical values in home and host countries.