1. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Ethics Education in MBA Programs Grady Bruce Rachel Edgington Graduate Management Admission Council®

2. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Research Objectives Learn how ethics is incorporated in curriculum Measure how effectively ethics is incorporated Identify predictors of effectiveness Discover how MBA students assess significance of corporate scandals Measure attitudes toward effects of corporate scandals on (1) business and (2) job search

3. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Methodology Online survey—Global MBA Graduate Survey 2003 75 U.S. schools 3,225 respondents Response rate = 27%

4. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Sample Gender% Male67% Female33% Median age = 29 Citizenship (World Regions)% Asia16% United States70% Canada1% Latin America & the Caribbean7% Europe5%

5. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Program Type Full-time82% Part-time15% Executive3% Class Size Small (< 100)24% Medium (100 to 250)33% Large (> 250)43% School Prestige Top-ranked44% All others56% Sample (continued)

6. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Speakers56% Required core course(s)46% Integrated case studies within some courses44% Referred to in most courses40% Elective course(s)40% Workshops26% Integrated case studies within most courses18% Outside assignments/projects17% Methods Used to Incorporate Ethics

7. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. School Differences in Major Methods Speakers Full-time—62% Part-time—28% Executive—44% Top-ranked—68% All others—46% Required core courses Full-time—48% Part-time—40% Executive—26% Top-ranked—46% All others—46% Integrated case studies within some courses—no significant differences

8. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Extremely effectively, 10% Very effectively, 32% Somewhat effectively, 41% Not very effectively, 14% Not at all effectively, 4% Effectiveness of Ethics Incorporation in Curriculum

9. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Method Mean Effectiveness Rating Used Not UsedDifference Integrated case studies within most courses3.973.140.82 Outside assignments/projects3.813.180.63 Referred to in most courses3.653.050.59 Speakers3.503.030.48 Workshops3.633.170.46 Required core course(s) 3.54 3.080.45 Integrated cases studies within some courses3.463.160.30 Elective courses3.453.190.26 5 pt scale: 5 = Extremely effective; 1 = Not at all effective Comparison of Mean Effectiveness Rating Based on Usage of Method

10. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Independent VariableStandardized Beta Coefficient Number of incorporation methods used0.260* Required core course(s)0.152* Quality of program management0.149* Integrated case studies within most courses0.145* Referred to in most courses0.120* Willingness to recommend school0.081* Quality of curriculum0.075** Quality of faculty0.062*** * p < 0.001; ** p < 0.01; *** p < 0.02. Multiple Regression Model Predicting Effectiveness Rating

11. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Program TypeMean a Full-time3.1 Part-time2.3 Executive2.5 School Size Small (< 100)2.8 Medium (100 to 250)2.8 Large (> 250 )3.1 School Prestige Top-ranked3.2 All others2.7 a Overall mean = 2.9 Mean Number of Ways of Incorporation by School Characteristics

12. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Attitudes toward Recent Corporate Scandals More significant—68% No different—29% Less significant—3%

13. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Effect % Choosing Effect Created an atmosphere of distrust of corporations81% Promoted short- and long-term change in business practices52% Caused companies to act more openly41% Caused companies to act more ethically37% Negatively impacted the perceptions by the marketplace of MBAs30% Brought about short-term change, but will not change long-term business practices29% Had little or no effect on business practices8% Elevated the respectability of an MBA education4% Effects of Recent Corporate Scandals

14. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Effectiveness and Effects More effective, more likely to say the recent corporate scandals— caused companies to act more ethically promoted short- and long-term change in business practices elevated the respectability of an MBA education caused companies to act more openly

15. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Less likely to say— brought about short-term change, but will not change long-term business practices had little or no effect on business practices negatively affected perceptions by the marketplace of MBAs

16. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Effect % Choosing Effect I’m more likely to accept a job offer from a reputable company versus one under investigation64% I think more critically about the ethical culture of prospective employers52% I’m more likely to ask questions about company values in job interviews39% I spend more time closely reading corporate financial statements24% Effects of Corporate Scandals on Job Search Behavior

17. ©2008 Graduate Management Admission Council® (GMAC®). All rights reserved. This document may be reproduced, in whole or in part, without modification and with all copyright and trademark attributions included. Effect Pearson Correlation I think more critically about the ethical culture of prospective employers0.13 I spend more time closely reading corporate financial statements0.11 I’m more likely to accept a job offer from a reputable company versus one under investigation0.09 I’m more likely to ask questions about company values in job interviews0.07 Correlations of Effects on Job Search Behavior with Ethics Incorporation Rating