Teaching Business Ethics: Why, What and How James Weber Director of the Beard Center for Leadership in Ethics, Duquesne University Part of the Ethics Seminars for the Spring Zicklin School of Business Baruch College, City University of New York March 13, 2003

Teaching Business Ethics Why – the need for business ethics education in our educational institutions What – the approach to business ethics education to maximize effectiveness How – the requisite supportive environment to better ensure success

The need for business ethics Corporate greed, fraud, illegalities, etc. Could a course in business ethics (or a series of courses) have prevented Enron, WorldCom, Tyco, Sprint, Ahold … … … ? Probably not. As Arlow & Ulrich reported years ago in their 1985 study … … …

Motivation for teaching business ethics? The need to model ethical behavior; true in any organization, particularly important for institutions of learning. The desire to feel a sense of pride in the ethicality of my organization and in my organization’s support of my acting in an ethical manner.

The state of ethics in educational institutions It does not look good … … … SIFE survey = 59% admit to cheating, only 19% would report a cheater U of Maryland students cheated on accounting exam via text messages on their cell phones Student feel competitive pressures and primacy of test scores/grades as causes

Calls for business school action Blue Ribbon Commission on Public Trust and Private Enterprise: improve courses, finance research, punish violators A Call to Arms and Plan for Collective Action (target = AACSB): change accreditation language, support creation of ethics courses Business Week online poll: stand alone course, do a better job, be practical in instruction

An approach to maximize effectiveness At Duquesne University, Schools of Business NOT a response to the Enron environment Rooted in our mission and tradition: –Business Ethics (1993) undergrad requirement –Applied Ethics (2001) graduate requirement (in addition to Public Affairs Management and ethics electives for MBA concentration)

Business Ethics: undergraduate requirement An applied approach Philosophers not mentioned or studied Focus is on ethical decision-making tools The 3 Rs of Ethics Recognition – List of Ethical Principles Reasoning – ethics theories & CMD Resolution – defensible resolution(s)

Business Ethics: undergraduate requirement A service learning approach Community service at local agencies Groups visit, de-brief, present to class Final focus: business-agency partnership for MUTUAL benefit

Business Ethics: undergraduate requirement A “Building a Just Community” approach Create “personal” code of ethics Analyze School’s Code of Ethical Behavior, sign-off procedure Wrestle with ethical issues in groups Discuss responsibility for internal, confidential whistle-blower

Applied Ethics: graduate requirement A “toolbox” approach One of the first five skills courses taken in the program Creates a decision framework for subsequent courses/instructors to use Introduces Code of Ethical behavior to govern/influence actions

Applied Ethics: graduate requirement An applied approach Daily work and student life dilemmas The 3 Rs of Ethics Recognition – List of Ethical Principles Reasoning – ethics theories & CMD Resolution – defensible resolution(s)

The requisite supportive environment Generic model for organizational success Organizational commitment Top management modeling Codify values, expectations Communicate intentions Enforce compliance/punish violators Ongoing improvement

The requisite supportive environment at Duquesne U Organizational commitment University Mission and Identity Schools of Business Mission Tradition and community expectation Administrative institutionalization: Beard Center for Leadership in Ethics

The requisite supportive environment at Duquesne U Top management modeling University Five-year Strategic Plan Curriculum committee decisions Dean’s directive: Ethics Initiative Faculty hiring in ethics Joint program development: Master of Science in Leadership and Business Ethics

The requisite supportive environment at Duquesne U Codify values, expectations Code of Ethical Behavior –Widespread dispersal –Student sign-off each semester –Discussion and application in business courses

The requisite supportive environment at Duquesne U Communicate intentions Semi-annual distribution of Code Emphasis in business courses: Ethics Across the Curriculum Report Attendance at semi-annual Distinguished Ethics Speakers series Volunteerism – Rotaract Club, fraternities, sororities, service clubs

The requisite supportive environment at Duquesne U Enforce compliance/punish violators Celebrate successes – promotional literature, publicize events Code provisions for violations Serious offenses referred to University (Academic Integrity Policy)

The requisite supportive environment at Duquesne U Ongoing improvement Periodic review of the Code Periodic review of the integration across the curriculum Ethical Advocates – enabling internal, confidential whistle-blowing and investigations as needed

Duquesne U: Ethical Nirvana ? NO !!! But an ethically supportive environment where ethics initiative seem to have a reasonable opportunity for success