The Hush-Hush Side of Business Ethics Education

By Hanna Drozdowski  

The recent Oscar winning documentary, “Inside Job,” along with media coverage of the irresponsible side of business have not helped boost management education’s image. Hollywood has used this as a popular theme in films throughout the years, particularly in the 1987 film, “Wall Street” and its recent 2010 sequel which focuses heavily on the reckless behavior, e.g. insider trading, of business executives that eventually led to the economic crisis. The main character of the film, Gordon Gekko, has become the archetype of the ruthless, profit-driven businessman, worried only about his own self-interest with no regard to social responsibility. Even though the film came out when many of today’s MBAs were mumbling their first words, it is difficult to find a student pursuing his or her business or MBA degree who does not know what this character embodies or who he is. 

However, contrary to the dominant media message, my work at AACSB suggests substantial interest, innovation, and investment in the area of business ethics. I’m the newest member of the AACSB research team and was pleasantly surprised to learn about the amount and quality of good work by business schools in this area. Unfortunately, their work has been easy to miss since it lies deep below the surface. It doesn’t make the news reel or help bloggers to attract comments, likes, and retweets. It is an inside job. For example, our own surveys help us to count the number of schools that have a major or concentration in ethics, social/environmental responsibility, sustainability, or non-profit management. That number has risen. But these data do not capture the much larger number of schools and programs that have expanded the role of ethics throughout the curriculum. Nor do they show the rise in the proportion of programs requiring courses in ethics; a number the Aspen Institute Center for Business Education, Beyond Grey Pinstripes reports has increased from 34% in 2001 to 69% in 2009 amongst schools responding to their surveys. The emphasis on ethics is definitely growing, and that suggests business schools have been taking serious action to promote ethical and responsible behavior among their students.

AACSB accreditation standards have long mandated that ethics be a part of the business curriculum. A growing number of business schools are incorporating a socially responsible mindset into their school’s culture through curriculum revisions, projects, and course requirements, even at the undergraduate level. For example, a recent AACSB Ethics and Sustainability Spotlight highlights the Building Ethical Leaders Using Integrated Ethics Framework (BELIEF) program at Northern Illinois University, where undergraduate business students are exposed to various methods and tools to help them become more ethical decision makers; students must even pass an online test covering the contents of an ethics handbook in order to register for subsequent courses. Another example of business students displaying “do-good” behavior, practices, and ambitions is found among participants in the Foundations of Management and Entrepreneurship (FME) program at Babson College, where freshman year students learn social responsibility and business acumen in addition to the basic business disciplines (accounting, finance, marketing, and management). Student teams invent, develop, launch, manage, and liquidate a business, while also volunteering for a non-profit organization throughout their spring semester. At the end of the semester each team donates its profits to that organization.

An abundance of tools for incorporating ethics into the curriculum have become more available to business schools. AACSB’s Ethics and Sustainability Resource Center Tools page provides links to many, such as CasePlace.org, which is organized by the Aspen Institute Center of Business Education and provides teaching materials (free of charge) to business school faculty (as well as other faculty, students, and professionals). Members can exchange ideas and materials, comment, and add content. Another similar noteworthy initiative is the Giving Voice to Values curriculum, which “helps students identify the many ways to voice their values in the workplace. It provides the opportunity to script and practice in front of peers, equipping future business leaders not only to know what is right, but how to make it happen.” And, it is also free to faculty!

As it is inevitable that instances of corrupt behavior will arise among some business leaders, even MBA graduates, for the most part business schools have shown responsibility in addressing ethics. Whether in joining initiatives like the Principles for Responsible Management Education (PRME) that inspires and champions responsible management education, research, and thought leadership globally, or urging recent business graduates to maintain social respect and responsibility in their work and personal lives (recently reported in Bloomberg Businessweek), business schools have worked hard to steer students in the right direction.  

Comments

[Kristijan Krkakc]

Of course does not "prescribe", but I do not have to prescibe one to do anything in order to make one does something. This is not a prescription, however it has a nature of someone "strongly advising" something (for instance AACSB 2004 "Ethics Education in Business Schools". I am aware of all models of teaching BE/CSR, and related issues, but the issue is not the education itself, but its impact on students at their workplaces. Nowadays, to ecourage someone to act differently in her workplace after MBA studies is almost as changing ones worldview (Weltanschauung), of course with previous consent of the person whose wolrdview is about to be changed. Introducing ethical standards (following ethical codes) and CSR practices (say dealing with various stakeholders) today is as complicate ad as hard as religious conversion say during conflicts between Roman Catholics and Reformed Christians in 16th century. It is about the change of way we live. Such thing cannot be prescribed, yet one can display a willingnes to do such conversion, and one leading someone in and out such conversion is not teaching anything, at least not in the first place, but understanding the other and her will, powers, and need to change a way of life, and then showing how hard and long-term achivement it is, and finally teaching some things about BE/CSR. Other way around simple will not do. Of course, this is only my personal opinion with my MBA students, MBA mentorships, and MA and PhD students and mentorships, no matter which topic is in question, ethical or any other.

[Kristijan Krkač]

Prescribition is perhaps misguided word. It is an issue of "should", but it cannot be the issue of "ought" or "must". On the other hand - what is the core business of business schools? And, is it not the part or an aspect of their core business to address legal and social issues of any business whatsoever as its integral and basic part which for one thing naturally "springs" from basic professionalism?

[best mba programs]

you discus about the mindset of students who are studying in some business schools but i am not agree with you business students like to take step for the progress and growth of business rather then siting up rigid concepts in the organization.

[Hanna Drozdowski]

JF, you are correct that AACSB does not prescribe specific courses in the MBA curriculum. However, Standard 15 (http://www.aacsb.edu/accreditation/business/standards/aol/standard15.asp) indicates that ethics should be part of management education curricula.

[Kristijan Krkač]

Quote: „The emphasis on ethics is definitely growing, and that suggests business schools have been taking serious action to promote ethical and responsible behavior among their students.“ (Section 2, last sentence)
Comment: I cannot agree more with the use of the word “promote” since this is all many schools do. I my personal opinion, promoting anything end as a “promotion” and even undergraduates understand what it comes down to. Now MBA is a different story. MBA students do not like promotion of anything. They like to learn if a professor is lucky. However, one needs to discuss issues with them seriously, and to try to change their mindset and their style of (business) life, and their standard business procedures which they follow at their workplaces. Yet, what right do a professor of BE & CSR has to change anybody’s mindset? One can present them with tools, choices, but cannot choose instead of them. One cannot even force them to make choices.
Quote: “A growing number of business schools are incorporating a socially responsible mindset into their school’s culture through curriculum revisions, projects, and course requirements, even at the undergraduate level.” (Section 3, second sentence)
Comment: In addition to the previous comment, one cannot incorporate “mindset” into school’s culture. Where, in walls, doors … this is categorical mistake if I remember correctly G. Ryle’s argument. Only in people working there, studying there, and doing other jobs. Let us try to compare the most of "CSR projects by MBA students" with their performance at workplace before MBA studies and after, and see what the impact of these programs is. (P. S. I know things are measured, some even longitudinally, i.e. for years, yet are really important things measured?)
General comment: What seems to be important, in my humble personal opinion, is the following: (a) to show students (especially MBAs) that CSR action is essential part or an aspect of any core business being done properly (lege artis), and (b) that imagination, creativity and clear reasoning concerning this point, transparency in argumentation, and above all, courage in stating this on each and every appropriate occasion concerning a core business at workplace is of utmost importance. Yet, some of these things cannot be taught. Fortunately, some can.

Professor Kristijan Krkač, PhD, Zagreb School of Economics and Management (Business ethics & CSR course, Department of Marketing)

[JF]

Thought that AACSB didn't prescribe courses to be included in the MBA curriculum? If it does, which standard states the ethics course requirement?