A Step Forward: Ethics Education Matters!

Ethics education matters! Contrary to some common beliefs that ethical behavior is inborn, this study suggests that education does matter. This paper examines ethics education and its relationship with students’ ethical awareness and moral reasoning. Attitudes Towards Business Ethics Questionnaire and 10 vignettes were deployed as the major measurement instruments. It is hypothesized that students with ethics education will have both a greater ethical awareness and ability to make more ethical decisions. Hypotheses were tested in two undergraduate business courses at a major research university where 707 students were sampled. Results suggest that ethics education improved students’ ethical awareness and moral reasoning. Interestingly, results also seem to show that students’ readiness moderated their learning outcomes.     

Using the "Ethical Environment" Paradigm to Teach Business Ethics: The Case of the Maquiladoras

The "ethical environment of business" provides a constructive frame of reference for business ethics instruction. As illustrated by a suggested role play about foreign sweatshops, it provides a realistic, problem-solving context for the study of moral and ethical ideas. Once ethical behavior is viewed through this paradigm, students can better see how business policies are shaped by ethics and prepare themselves to react to their own ethical environment.     

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.     

Hong Kong's Code of Ethics Initiative: Some Differences between Theory and Practice

As a result of the public demand for higher ethical standards, business schools are increasingly taking ethical matters seriously. But their effort has concentrated on teaching business ethics and on students' ethical behavior. Business faculty, in contrast, has attracted much less attention. This paper explores the context and the implications of an alleged case of plagiarism in a master's dissertation submitted to a university lacking both an ethical code of conduct and a formalized procedure to deal with academic misconduct. The events evolved into a bitter political process in which the more ethically aware members of faculty challenged efforts to cover-up. Here the focus is on the motives and behavior of faculty members involved in this case rather than the alleged plagiarist's. The role played by the main actors involved in the process in examined using the theory of moral development and the organizational politic perspective. The paper discusses the mechanisms available to raise ethical awareness and prevent academic misconduct, and the limitations of self-regulation and self-monitoring that prevails in the university system. It also examines the impact of ethics instruction and faculty ethical standards on students' behavior and concludes that ethics instruction can only be effective when the principles taught are in line with daily actions of their instructors.     

Using role play to integrate ethics into the business curriculum a financial management example

Calls for increasing integration of ethical considerations into business education are well documented. Business graduates are perceived to be ethically naive at best, and at worst, constrained in their moral development by the lack of ethical content in their courses. The pedagogic concern is to find effective methods of incorporating ethics into the fabric of business education. The purpose of this paper is to suggest and illustrate role play as an appropriate method for integrating ethical concerns.Dr. Kate Brown is a senior lecturer in the Department of Finance and Quantitative Analysis at the University of Otago in Dunedin, New Zealand. She teaches financial management and a course in entrepreneurship and venture capital. Her research interests include corporate finance, regulatory economics, and issues in the teaching of finance.     

Moral reasoning and business ethics: Implications for research,education, and management

This paper reviews Kohlberg's (1969) theory of cognitive moral development, highlighting moral reasoning research relevant to the business ethics domain. Implications for future business ethics research, higher education and training, and the management of ethical/unethical behavior are discussed.Linda Klebe Trevino is Assistant Professor of Organizational Behavior at the Mary Jean and Frank B. Smeal College of Business Administration, The Pennsylvania State University. She received her Ph.D. in management from Texas A&M University. Her current research focuses on ethical decision-making behavior in organizations, justice perceptions in disciplinary situations, and new information technologies in managerial communication.     

The Role of Law in Models of Ethical Behavior

In attempting to improve ethical decision-making in business organizations, researchers have developed models of ethical decision-making processes. Most of these models do not include a role for law in ethical decision-making, or if law is mentioned, it is set as a boundary constraint, exogenous to the decision process. However, many decision models in business ethics are based on cognitive moral development theory, in which the law is thought to be the external referent of individuals at the level of cognitive development that most people have achieved. Other theoretical bases of ethical decision models, social learning, and experientialism, also imply a role for law that is rarely made explicit. Law is a more important aspect of ethical decision-process models than it appears to be in the models. This paper will derive explicit roles for the law from the cognition, experientialism, and social learning theories that are used to build ethical decision-making models for business behavior. Sandra Christensen is Professor of Management at Eastern Washington University, where she teaches courses in Business & Society, International Business, and Leadership & Ethics. She has published in Business and Society, Business Ethics Quarterly, the Journal of Business Ethics, and the Academy of Management Review.     

Ethics Sensitivity and Awareness Within Organizations in Kuwait: An Empirical Exploration of Epoused Theory and Theory-in-Use

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta-strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics educaiton.     

Editorial Adieu: Cultivating Moral Courage in Business

Leaving an editorial chair provides an opportunity for the departing incumbent to deliver a final message to his readers. Seven years after founding Business Ethics. A European Review the editor can offer no better valedictory than to explore the role of moral courage in the ethical conduct of business. Not only does this provide an excellent illustration of the recent recovery of the subject of “virtue” ethics in moral philosophy in general, as well as in the application of morality to business. It also serves to highlight the important difference between ‘business ethics’ as a term applied to the study of right and wrong behaviour in business, and ‘ethical business’, which is business actually conducted on ethical lines. For the difference between behaving rightly and wrongly in any area of human activity, including that of business, is not simply a matter of knowledge, or of finding the “correct” answer. There is a crucial psychological gap between knowing what one ought to do and then actually doing it; as Ovid ruefully observed, we see and approve the better things, yet we follow the worse. This is where courage comes in, for the gap between ethical perception and ethical performance is bridged by moral courage, as the following article suggests. More colloquially, the author is accustomed to conclude his classroom teaching on business ethics by observing that it is one thing to work out, often laboriously and hesitantly, what is the correct line of behaviour to follow; it is quite another thing to have the guts to follow it. An early version of this paper was delivered in Gresham College, London, while a more developed account dates from the First World Congress of the International Society of Business, Economics and Ethics, held in Tokyo in 1996. The following is reprinted from International Business Ethics: Challenges and Approaches , edited by George Enderle earlier this year and published by the University of Notre Dame Press and Hong Kong University Press.     

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'.     

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.     

Ethics in business education: Working toward a meaningful reciprocity

This paper outlines and argues against some criticisms of business ethics education. It maintains that these criticisms have been put forward due to a misunderstanding of the nature of business and/or ethics. Business ethics seeks a meaningful reciprocity among economic, social and moral concerns. This demands that business organizations autonomously develop ethical goals from within, which in turn demands a reciprocity between ethical theory and practical experience. Working toward such a reciprocity, the ultimate goal of business ethics education is a moral business point of view through which one can live with integrity and fulfillment.To everyone who proposes to have a good career, moral philosophy is indispensible. Cicero, De Officiis, 44BC W. Michael Hoffman is Chair and Professor in the Department of Philosophy and Director at the Center for Business Ethics, Bentley College, Waltham, MA. He has received the following Grants: Council for Philosophical Studies, NEH Fellow, NDEA Fellow, Matchette. His most important publications are: Kant's Theory of Freedom: A Metaphysical Inquiry (UPA, 1979); Proceedings of the National Conferences on Business Ethics, 5 volumes (1977–1984); Business Ethics (McGraw-Hill, 1984) and articles in Journal of Business Ethics, Idealistic Studies, International Journal for Philosophy of Religion, Journal of Thought, The Journal for Critical Analysis, and The Southern Journal of Philosophy.Paper presented at the 16th Conference on Value Inquiry, entitled: Ethics and the Market Place: An Exercise in Bridge-Building or On the Slopes of the Interface.     

Stages of moral development of corporations

Drawing from the Boulding's (1956) framework for general systems theory, the need to employ richer paradigm in the study of organizations (Pondy and Mitroff, 1979) is reiterated. It is argued that a better understanding of organizational ethical behavior is contingent upon viewing organizations as symbol processing systems of shared language and meanings. Further, it is proposed that organizations, like individuals, develop into collectivities of shared cognitions and rationale, over a period of time. The study adapts Kohlberg's (1983) model of moral development to examine if organizations can be viewed as passing through different stages of moral development depending on the type of moral reasoning employed to explain their behaviors in the face of ethical crises. Several cases raising questions about the ethics of corporate behavior were researched. An instrument entitled Organization Response Analysis was constructed using statements made by various spokespersons representing five of these organizations. The instrument was administered to 246 graduate and undergraduate students of business (N = 246). Results indicated a great degree of concurrence among respondents of differing genders, levels of education and work experience in determining the stages of moral development of organizations. Limitations of the current study and implications for future research and practice are discussed.B. S. Sridhar, Ph.D., is an Assistant Professor of Management at the College of Business, University of Wisconsin — Oshkosh. His research interests include transformational leadership, decision making, attribution, business ethics and cross cultural issues.Artegal Camburn, Ph.D., is an Associate Professor of Management at the Harold Walter Siebens School of Business, Buena Vista College in Storm Lake, Iowa. His research interests concern the social responsibility of business and decision making in the areas of business ethics and corporate social responsibility.     

An applied ethical analysis system in business

Much of the discussion on business ethics is philosophical in nature. There is no lack of theories and ideals on moral reasoning. What is missing is translating these moral theories and principles into specific, operational procedures that can indicate a proper course of action. Although most business actions are routine and do not raise serious ethical questions, many people experience difficulty in applying their personal moral principles to specific business decisions in ethically-dilemmatic situations.This study seeks to develop a framework that can be utilized to implement personal moral reasoning based on the teleological theory of Utilitarianism and the deontological theory of Ross's Prima Facie Duties in the business decision-making process. The central feature in the framework is a point-system that quantities the ethical worth of a proposed business action and determines whether the action would be ethically desirable if taken. It provides an objective element in an otherwise qualitative ethical inquiry process. This study also illustrates practical applications of the system by analyzing the ethical implications of a proposed action where foreign bribery is involved.Alan Wong is Assistant Professor of Finance, Indiana University Southeast. His areas of academic research are managerial ethics and financial options. He has published in theReview of Business and Economic Research.Eugene Beckman is the Director of the MBA Program at Indiana University Southeast. He was awarded the Faculty Excellence Award in 1989 and his primary areas of research are business ethics and marketing.     

A quick justification for business ethics

The article examines the question of whether business ethics courses ought to have an impact. Despite the still common attitude among students and some business professionals that ethical considerations are less pressing in business, I argue that moral obligations are just as important there as elsewhere. The emphasis on profits in business is related to other realms (e.g., hobbies and seeking and education) in which, though private goals are dominant, moral limits remain in force. Business ethics courses can play a crucial role in emphasizing the necessity of ethical analysis in business. Louis G. Lombardi is Assistant Professor of Philosophy at the Lake Forest College and the author of Inherent Worth, Respect, and Rights in Environmental Ethics.     

Business Ethics Perceptions of Public and Private Sector Iranians

Ethical maturity is a great concern to all educators, firms, and investors across the globe. This research surveyed 448 citizens, managers and employees in Iran to measure their Personal Business Ethics Scores (PBES) to see if age, education, management experience, and government work experience make a difference in making more ethical decisions. This study contributes to the theory of moral development across the Iranian culture as it is the first known study using this method. The results suggest that education and more years of government work experience make a difference in the moral maturity of respondents. This study confirms that the ethical maturity of respondents is enhanced either through the authoritarian regime or socialization with Islamic values. Kohlberg’s moral development theory regarding ethical maturity is partially supported since those with more years of experience in government and more formal education have higher business ethics scores. Implications are discussed.     

Living (not learning) ethics

Much has been written recently about both the urgency and efficacy of teaching business ethics. The results of our survey of AACSB member schools confirm prior reports of similar surveys: The teaching of business ethics is indiscriminate, unorganized, and undisciplined in most North American schools of business. If universities are to be taken seriously in their efforts to create more ethical awareness and better moral decision-making skills among their graduates, they must provide a rigorous and well-developed system in which students can live ethics instead of merely learn ethics. A system must be devised to allow students to discover and refine their own values rather than simply learning ethical theories from an intellectual point of view.After reviewing the literature on business ethics in undergraduate curricula, we make a series of recommendations to deliver experiential ethical education for business students. The recommendations include student and faculty written codes of ethics, emphasis on ethical theory within the existing required legal environment course, applied ethics in the functional area capstones using alternative learning, a discussion of employee (and employer) rights and responsibilities during the curriculum capstone course, and a public service requirement for graduation. These recommendations may be implemented without substantive additional cost or programming requirements.Joseph Solberg is an Assistant Professor of Business Law at Illinois State University. His teaching and research interests are centered on the legal and ethical environments of business and the pedagogy of business ethics. He is a member of the American and Midwest Academies and Legal Studies in Business.Kelly Strong is an Assistant Professor of Management at Illinois State University. His teaching and research interests include business ethics, business and society, and strategic issues management. He has published articles in the Journal of Business Ethics and other scholarly outlets in the areas of ethics education, business and society, and ethical decision making.Charles McGuire, Jr. is Professor of Business Law and Chair of the Finance, Insurance and Law Department at Illinois State University. His interests are in the areas of business law and the legal environment of business as well as government regulation. He has published text-books and supplements on the legal environment of business in addition to scholarly works in the American Business Law Journal, among others.     

Training professional managers in decision-making about real life business ethics problems: The acquisition of the autonomous problem-solving skill

In the present study business managers in Kabi Pharmacia Company were trained in the use of the autonomous method in their decision-making about solving real life business ethics problems. According to the psychological theories of Piaget, Vygotsky, and Kohlberg, it is possible to promote the acquisition of the autonomous ethical skill by instruction and training. Indeed, participation in a one-day educational programme which focused on the training of the autonomous cognitive ability and not on the transfer of moral content, was sufficient to provide a shift in the mode of decision-making about business ethics problems towards the autonomous ethical function. This change was still stable one month later. A test was constructed by items representing current business ethics conflicts in order to assess ethical function.Iordanis Kavathatzopoulos is Asc. Professor of Psychology at the Department of Psychology, Uppsala University, Sweden. His research focuses mainly on education and ethical development, and on structure and dynamics of work organisation. He has published recently in theJournal of Moral Education and in theJournal of Business Ethics.     

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.     

The Influence of Business Ethics Education on Moral Efficacy,Moral Meaningfulness,and Moral Courage: A Quasi-experimental Study

The research described here contributes to the extant empirical research on business ethics education by examining outcomes drawn from the literature on positive organizational scholarship (POS). The general research question explored is whether a course on ethical decision-making in business could positively influence students’ confidence in their abilities to handle ethical problems at work (i.e., moral efficacy), boost the relative importance of ethics in their work lives (i.e., moral meaningfulness), and encourage them to be more courageous in raising ethical problems at work even if it is unpopular (i.e., moral courage). Specifically, the study used a rigorous quasi-experimental pretest–posttest research design with a treatment (N = 30) and control group (N = 30) to investigate whether a graduate-level course in business ethics could influence students’ levels of moral efficacy, meaningfulness, and courage. Findings revealed that participants in the business ethics treatment course experienced significant positive increases in each of the three outcome variables as compared to the control group. The largest increase was in moral efficacy, followed by moral courage, and finally, moral meaningfulness. These findings are discussed in the context of the current research on business ethics education and POS. Implications for future research are discussed.