Center for Ethical Leadership

Establishment Document

Center for Ethical Leadership College of Business Administration California State University, Long Beach

January 15, 2005

Executive Overview

Center for Ethical Leadership 1

Executive Overview

The College of Business Administration is establishing a Center for Ethical Leadership that seeks to be the preeminent center of thought about applied ethics in leadership in business and the professions among public comprehensive universities in the Western United States. The Center will enable the College of Business Administration and California State University, Long Beach to assist companies and not-for-profit organizations in meeting the challenges of ethical leadership, create new knowledge that will advance the practice of ethical leadership, and produce graduates who are not only competent professionals, but also honest and ethical citizens. As an interdisciplinary organization, the Center will draw upon the collective expertise of faculty and administrators not only from the College of Business Administration, but also from the Division of Student Services and, initially, from six departments in four other academic colleges of California State University, Long Beach. Under the guidance of a Governing Council, the Dean of the College of Business Administration and a faculty member in the College will serve as Co-Directors of the Center. A Managing Director will be appointed to be responsible for the day-to-day operations and management of the Center. The Center will require an annual financial investment of about $200,000, which is envisioned to come from endowment earnings and other forms of private-public partnerships. At California State University, Long Beach, the Center proposal was endorsed by the College of Business Administration Faculty Council on March 15, 2004, presented to the Executive Committee of the Academic Senate on May 11, 2004, and presented to the Senior Management Council on May 12, 2004.

Business Education at California State University, Long Beach


Section

1 Business Education at California State University, Long Beach

California State University, Long Beach (CSULB) is the flagship campus and the largest of the 23 campuses of the California State University system. It is a comprehensive, four-year institution established in 1949 by Assembly Bill 8, which was signed by Governor Earl Warren on January 29, 1949, as the Los Angeles-Orange County State College to serve the areas of Orange County and southeastern Los Angeles County. In the “2005 Best American Colleges” ranking published by US News & World Report, CSULB was ranked among the top tier of over 500 comprehensive (master’s degree-granting) universities in the 15 states comprising the Western region of the United States, the top third among the 129 public comprehensive universities in the West, the first in the West for graduates with the least college debt load, the seventh in the West in terms of diversity in the student population, and among the top ten in the West for student selectivity. The College of Business Administration (CBA) is one of the seven colleges of CSULB. Business studies at CSULB date back to 1949, when there were 24 business students and four faculty members, out of a total of 160 students and 12 faculty members. By the mid-1960s, the business school had close to 3,800 business students, 29 full-time faculty members, and 13 part-time lecturers. Today, the College of Business Administration is home to over 5,000 business majors, including about 400 graduate students, and about 150 full-time and part-time faculty members. The College hosts the largest student population at CSU Long Beach. Since its establishment, CBA has a long and distinguished history of preparing its graduates to assume leadership roles in the world of business. It would be hard to imagine an industry that has not been shaped by our more than 40,000 graduates worldwide. The hallmarks of a CBA business education—quality, rigor, and relevance—remain constant over time. The Association to Advance Collegiate Schools of Business (AACSB International) has accredited the College since 1971.

Business Education at California State University, Long Beach


Meeting the rigorous standards of the AACSB is a measure of a business school’s quality of curriculum, faculty, facilities, and students. Only 412 U.S. business schools are accredited by AACSB International and only 267 business schools worldwide have accreditation at the bachelor’s and master’s levels. The CBA is one of these elite schools. The College is an excellent school, poised to become a preeminent school that will prepare our students to meet the demands and define the future of business in the 21st century. It is one of only two CSU business schools among the 138 worldwide governing members of the Graduate Management Admission Council, the international standards-making body for MBA admissions, placement, and student services. The College is the only CSU business school that has an MBA alumnus among the CEOs of Fortune 200 corporations. Further, the CBA is one of only three CSU business schools that Entrepreneur magazine cited as among the top 50 regional programs for educating entrepreneurs in the nation in 2003. In 2000, the College adopted as its roadmap to performance excellence the Education Criteria for Performance Excellence of the Malcolm Baldrige National Quality Award, which is the country’s highest national award for quality and business excellence. The only California business school to be recognized with the California Prospector Award, based upon the rigorous Baldrige criteria, the College of Business Administration is ready to build on its commitment to quality, continuous improvement, and academic excellence.

A Vision for Excellence


Section

2 A Vision for Excellence

The vision of the College of Business Administration is to become the College of Choice for business students in Southern California by providing a high quality learning and research environment that has a global perspective and that contributes to regional economic development. We seek to propel the College of Business Administration at CSULB to become one of the nation’s truly great business schools. The College will serve students, businesses, and scholars as the premier source of leading-edge ideas and academic programs that are anchored in theory and that influence business practice. Achieving this goal will mean that the very best and brightest students in Southern California can remain in the region to find truly exceptional opportunities in business education. Our business partners will find the best student talent, the best ideas, and the best faculty—to serve as executive educators, consultants, researchers, and practitioners—in the region. To achieve this vision, we foster collaboration through academic partnerships and insist on quality and operational excellence. Collaboration with business leaders and a demonstrated commitment to quality and operational excellence will distinguish the College of Business Administration from other nationally accredited business schools in three areas of concentration: ethical leadership, management of technology, and globalization. Ethical Leadership The College seeks to produce graduates who are not only competent in their disciplines, but are also honest and ethical citizens. Through our partnerships, we seek to incorporate business ethics and ethical leadership in the business curriculum, as well as to promote faculty research in business ethics and ethical leadership. A new Center for

A Vision for Excellence


Ethical Leadership will enhance our leadership in this field, bringing together faculty, students, and business partners. Management of Technology Since the advent of the Information Age, the College has been at the forefront of information technology education. Our instructional facilities rank among the best in California business schools. The Center for Information Strategies and Technologies is a leading center in Southern California for research and community service in the area of information technology. The College-based Journal of Electronic Commerce Research is internationally ranked as a top-tier academic journal in e-business. Through our partnerships, we will develop educational strategies that will not only infuse the curriculum with technology, but also create educational programs that will examine the utilization and management of technology in tomorrow’s business environment. Globalization Our international initiatives include exchanges with 15 leading business schools in Asia and Europe, with a distinctive competence in East and Southeast Asia. Our international relationships have two thrusts. The first is to create study abroad opportunities for our students in order to provide them with hands-on exposure to the business, culture, and society overseas. The second is to enter into articulation (“twinning”) agreements with feeder business schools overseas to ensure smooth and effective transfer of qualified international students into the College. A new Center for International Business Education will orchestrate our global initiatives to capitalize on our unequivocal commitment and our geographic proximity to the Ports of Long Beach and Los Angeles.

Overview of the Center for Ethical Leadership


Section

3 Overview of the Center for Ethical Leadership

Vision

By the year 2010, the Center for Ethical Leadership in the College of Business Administration at California State University, Long Beach will be the preeminent center of thought about applied ethics in leadership in business and the professions among public comprehensive universities in the Western United States.

Mission The Center for Ethical Leadership will promote ethical leadership in our society through community service, university research, and support of ethics across the curriculum. Community Service The Center will assist companies and not-for-profit organizations in meeting the challenges of aligning effective business performance with ethical business conduct. The Center will implement the College’s Leadership Roundtable Program—a series of executive briefings and faculty briefings supported by member contributions—and design and deliver seminars on best practices for leaders in government, business, and education. In the future, it will facilitate consulting engagements by faculty for organizations that are struggling with leadership challenges. Research The Center will financially support the creation of new knowledge that will advance the practice of ethical leadership. The Center will encourage faculty to conduct and facilitate research to advance the theoretical foundation for ethical leadership. Studies will be pursued,



for example, in styles of leadership, how different organizational environments impact leadership, and how leaders affect the ethical quality of organizations. Research results will be disseminated through the Center’s newsletter and an internet website as well as through scholarly papers and presentations. Education The Center will enable the College of Business Administration and cooperating colleges to produce graduates who are not only competent professionals, but also honest and ethical citizens. In pursuit of its educational mission, the Center will financially support the infusion of ethics into the curriculum, the integration of community service in existing undergraduate and graduate courses, and the development of new graduate and undergraduate courses for students from all disciplines in the area of ethical leadership. Through a Graduate Fellowship in Ethical Leadership, the Center will support the MBA education and research projects of graduate students who have the demonstrated potential to be future business leaders. In the long term, it will sponsor a Leader-in-Residence program to bring outstanding leaders to the College and will organize an annual California Leadership Academy to prepare student leaders from around the state to meeting the challenges of ethical leadership in business and the professions.

Rationale for the Center The Center for Ethical Leadership is the College’s strategic response to the ethics and governance crisis that has been occurring in U.S. business and industry. Further impetus for the creation of the proposed Center comes from AACSB International’s new accreditation standards (adopted Summer 2003) that have a significant emphasis on ethics. Capitalizing on the passage of the Sarbanes-Oxley Act of 2002 (H.R. 3763), an increasing number of business schools in the United States are starting to develop formal programs, institutes, and centers with a focus on business ethics and corporate governance. The ethics and governance crisis was recognized by the State of California when the California Legislature passed and Governor Davis



signed in September 2003, SB 821, “Business Ethics: Golden State Business and Social Responsibility Award.” This legislation, which has been incorporated into law as Chapter 5.5 in Part 40 of the Education Code commencing with Section 66350, requires the California State University and the California Community College Systems to “establish and convene a task force to develop a plan for integrating instruction in business ethics into their business and business administration programs.” Dean Luís Calingo represents the CSU business deans on this statewide task force. Traditionally, business schools have emphasized the teaching of analytic methods and substantive knowledge, thereby equipping graduates with the expertise needed for staff jobs. We want to go beyond that by preparing our graduates for leadership positions in the public, private, and nonprofit sectors and for the ethical challenges they will encounter throughout their careers. The proposed Center for Ethical Leadership rests on four premises. First, the long-term success of an organization, community or a society depends on good leadership, not just on technical proficiency and skillful management. Second, good leadership must be grounded in ethical values. Third, there are tensions between personal values and goals, on the one hand, and organizational, community or societal values and goals on the other. Ethical leadership involves recognizing and reconciling those tensions. Fourth, although leadership is a complex form of human behavior, most of what we think of as leadership is learned and, therefore, can be taught. However, very few colleges and universities teach leadership, and very few institutions provide leadership training for their employees. Indeed, the United States military is virtually the only American institution that systematically develops leaders. Much of the initial design of the proposed Center benefited from consultations with the Center for Ethical Leadership at the LBJ School of Public Affairs, University of Texas at Austin. Centers with quite similar missions as the proposed Center include: Center for Business Ethics (Bentley College), Center for Ethics and Businesses (Loyola Marymount University), Center for Responsible Business (University of California at Berkeley), Corporate Governance Institute (San Diego State University), Institute for Social Responsibility (San Jose State University), Markkula Center for Applied Ethics (Santa Clara



University), Center for Ethical Leadership (Concordia College), the forthcoming Center for Business Ethics (Columbia University), and the forthcoming Global Citizenship Initiative (University of Michigan at Ann Arbor). With the exception of the Centers at the University of Texas and Concordia College, the Dean of the College of Business Administration is not aware of any other university center whose mission is the same as the proposed Center. The Center for Ethical Leadership represents a major advance in professional business education at CSULB. It is envisioned that the College of Business Administration will involve other colleges and departments at CSULB so that the proposed center will eventually become a University Center for Ethical Leadership.

Faculty Involvement The Center for Ethical Leadership will be an interdisciplinary center that will be administratively housed in the College of Business Administration. To be appointed as a member of the Founding Faculty of the Center, the faculty member must commit to the infusion of a business ethics module into his/her courses (equivalent to at least three hours of instruction during the semester) and must also commit to the conduct of research on the ethical issues in his/her discipline (resulting in at least one refereed journal article on the subject in a three-year period). Further, the faculty member must be willing to deliver the above expectations within the constraints of resources available to the College (i.e., with very minimal additional financial support from the College). As of the start of the Fall 2004 semester, the following seven faculty members in the College of Business Administration have signified their intention of being part of the Founding Faculty of the Center for Ethical Leadership:

Luís Ma. R. Calingo Dean, College of Business Administration Deborah R. Gaut Assistant Professor of Business Communications



Barbara Crutchfield George Professor Emeritus of Legal Studies in Business Kathleen A. Lacey Professor of Legal Studies in Business Arthur M. Levine Professor of Legal Studies in Business Linda A. O’Hara Assistant Professor of Organizational Behavior Judith P. Strauss Assistant Professor of Human Resource Management

In addition, several faculty members from other colleges at CSULB and other universities have signified their intention of cooperating with the Center for Ethical Leadership by committing to incorporating an ethics module in their course offerings (as appropriate) and/or conducting research into ethics in their respective professions. As of the start of the Fall 2004 semester, these Cooperating Faculty include:

College of the Arts Patrick McDonough Professor of Theater Arts Head of Theater Management College of Liberal Arts Mathew A. Cabot Assistant Professor of Journalism Peter Lowentrout Professor of Religious Studies Director, University 100 Program Jeffrey Moriarty Assistant Professor of Philosophy Director, Center for Applied Ethics



Craig R. Smith Professor of Communication Studies Director, Center for First Amendment Studies College of Engineering Wayne E. Dick Professor of Computer Engineering & Computer Science College of Natural Sciences and Mathematics Carol A. Itatani Professor of Biological Sciences; B.S. Microbiology Advisor Lisa S. Klig Professor of Biological Sciences University of Asia and the Pacific, Philippines Raymund Pangilinan Professor of Management Middle East Technical University, Turkey Semra Aşcıgil Professor of Business Administration

Community Support Dean Luís Calingo initially proposed the establishment of a University Center for Ethical Leadership in his op-ed article (dated July 21, 2002) in the “Sunday Forum” of the Long Beach Press Telegram. Since that time, the concept of the Center has received favorable feedback from the business community. Dean Calingo presented the initial formal concept plan for the proposed Center for Ethical Leadership at the September 18, 2002 meeting of the College’s Chief Executive Officers Forum. The CEO Forum gave its preliminary support for the concept and advised the



Dean to prepare a more detailed program plan that includes an implementation schedule and a projected budget. The Dean then had a series of consultations with the Human Resource Management Program Advisory Board (the latest being on February 26, 2003) and the LeadershipTraQ Board of Directors (May 20, 2003). At its June 11, 2003 meeting, the Dean’s Advisory Board unanimously endorsed the establishment of the Center for Ethical Leadership. Subsequent consultations involved the following alumni and business leaders:

Howard E. Chambers Vice President, Program Management and Independent Review The Boeing Company Seal Beach, California Chip Espinoza Executive Vice President, LeadershipTraQ Cypress, California Robert L. Lorber President, Lorber Kamai Consulting Group Davis, California Curtis L. Pringle Mayor of Anaheim, California Marketing, 1981; MPA, 1986 Thomas A. Reep Chief Financial Officer and Vice President for Finance First Consulting Group Long Beach, California Finance, 1977; MBA, 1993 Karl H. Romero President, LPL Financial Services Santa Ana, California Finance, 1973



Robert F. Schack Chairman and Chief Executive Officer American Business Bank Los Angeles, California Finance, 1970; MBA, 1972 Michael M. Smith Attorney at Law, Gambrell & Stolz, LLP, Atlanta Accountancy, 1977 Bob Stone Energizer in Chief, The Public Strategies Group Deputy Assistant Secretary of Defense, 1981-1993 Chair, National Performance Review Task Force, 1993-1999 Mick Ukleja President, LeadershipTraQ Cypress, California Philosophy, 1973

The establishment of mutually beneficial linkages and collaborative partnerships with existing university centers/institutes or not-for-profit organizations with comparable missions will accelerate the future development of the proposed Center. These prospective partner-organizations include: • LeadershipTraQ <www.leadershiptraq.com>, a not-for-profit

leadership consortium with the mission of “empowering leaders to live life on purpose.”

• Global Diversity Institute <www.globaldiversityinstitute.org>, a not-for-profit organization aimed at providing a safe space for critical thinkers to share their thoughts, research and experiences on workplace cultural improvements directed at the themes of social justice, multicultural equity and postmodern organizational forms.

• The Joseph & Edna Josephson Institute of Ethics <www.josephsoninstitute.org>, a nonpartisan, not-for-profit membership organization founded by Michael S. Josephson (Los Angeles, Calif.) in honor of his parents to improve the ethical quality of society by advocating principled reasoning and ethical decision making.



• Ethics Officer Association <www.eoa.org>, a professional association for managers of ethics, compliance and business conduct programs in almost 1,000 corporations in the United States and 10 other countries.

• International Business Ethics Institute <www.business-ethics.org>, a not-for-profit educational organization formed in 1994 in response to the growing need for transnationalism in the field of business ethics.

• The Aspen Institute <www.aspeninstitute.org>, a global forum that convenes leaders to address critical issues that confront societies, organizations, and individuals.

• The James MacGregor Burns Academy of Leadership <www.academy.umd.edu>, a not-for-profit organization within the University of Maryland's College of Behavioral and Social Sciences whose mission is to foster principled leadership through scholarship, education, and training, with special attention to advancing the leadership of groups historically underrepresented in public life.

• Greenleaf Center for Servant Leadership <www.greenleaf.org>, an international, not-for-profit institution that helps people understand the principles and practices of servant-leaders (increased service to others) through a holistic approach to work; promoting a sense of community; and the sharing of power in decision making.

• Leadership Long Beach <http://www.leadershiplb.org/>, a program for the development of “diverse principled leaders for community enrichment.”

Proposed Center Initiatives and Related College Accomplishments


Section

4 Proposed Center Initiatives and Related College Accomplishments

Outreach: Service to the Community

Planned Initiatives The Center for Ethical Leadership proposes to serve the business and professional communities through three major outreach initiatives: the Leadership Roundtable, Business and Organizational Ethics Partnership, and Continuing Professional Education. The Center will hold Leadership Roundtable executive briefings that will bring to CSULB prominent national and international scholars and speakers to present new developments in the fields of leadership, business ethics, and corporate governance. Through the Center, the College of Business Administration will organize a Business and Organizational Ethics Partnership with companies in various sectors to explore questions, challenges, and opportunities faced by organizations in managing their ethics programs. In cooperation with the University College & Extension Services (UCES) and the professional societies, the Center will organize events and training seminars on ethical leadership and corporate governance, which will grant Continuing Professional Education credit to accountants, lawyers, and other professionals in Southern California. Examples of course topics might include the Sarbanes-Oxley Act of 2002, creating an environment for empowerment and ethical behavior, whistleblowing and creating a non-retaliatory workplace, organizational governance, public responsibility and citizenship, and serving on not-for-profit boards. College Accomplishments To date, the College of Business Administration has organized the following seven Leadership Roundtable executive briefings for the community:



• “The Supply and Demand of World Energy,” Peter Davies (BP Chief Economist), 2001

• “Global Financial Market in Turbulent Times,” Morgan Stanley, Trust Company of the West, and Citibank, 2001

• “Leading in Tough Times,” Ken Blanchard, 2002 • “Crisis Leadership—Preparing for the Unthinkable: The New

Competitive Edge,” Ian I. Mitroff (University of Southern California), 2002

• “Emotionally Intelligent Leadership: The Key to Maximizing Performance,” Joseph L. Mancusi (President, Center for Organizational Excellence), 2002

• “Influential Communication: Powerful Collaboration,” Michael Brandwein, 2003

• “Good Ethics = Good Business,” Marianne M. Jennings (Arizona State University), 2003

• “WICS: A New Theory of Leadership Incorporating Wisdom, Intelligence, and Creativity, Synthesized,” Robert J. Sternberg (President, American Psychological Association), 2004

The College also conducted ten faculty breakfast briefings for members of the Leadership Roundtable. Of these ten briefings, the following seven (7) dealt with research issues related to the Center for Ethical Leadership: • “Eight Tracks to Personal and Organizational Transformation,”

Ralph H. Kilmann (Visiting Scholar and author of Quantum Organizations), 2002

• “Organizational Norms for Communicating: How Do New Hires Learn the Ropes?,” Jenny W. Gilsdorf (Business Communication), 2002

• “The 4 Ps of Motion Picture Piracy and How to Cope with Them,” Terrence H. Witkowski, 2002

• “Leadership Style and Group Creativity: One Size Does Not Fit All,” Linda A. O’Hara (Management/HRM), 2002

• “Ethics and Values in Corporate America: The Good, the Bad, and the Possible,” Arthur M. Levine (Business Law), 2003

• “Equity in the Workplace,” Ted H. Shore (Management/HRM), 2003

• “The Contagious Leader: Impact of Leader’s Emotion on Group Effectiveness,” Tom Sy (Management/HRM), 2004



Programs for Academic Year 2004/05 The Center for Ethical Leadership proposes to offer two educational programs for the business and professional communities during the 2004/05 academic year. First, the College sponsored a Leadership Roundtable executive briefing (October 25, 2004) on Reinventing Government, featuring Bob Stone, author of the best-seller Confessions of a Civil Servant: Lessons in Changing America’s Government and Military (Foreword by Tom Peters, 2003), in conjunction with the launch of the new MBA Program in Municipal and Public Agency Management. Second, the College is partnering with the Global Diversity Institute to design and offer a CEU-bearing Certification in Workplace Diversity and Ethical Pluralism. This proposed offering (see Appendix A, pages 30-32) will be the country’s first standardized certification program for future and present human resource managers, diversity consultants, and other workplace practitioners in the arena of multiculturalism or diversity management and workplace ethics.

Research: Creating Usable Knowledge Planned Initiatives The Center for Ethical Leadership seeks to be a leader in research on ethical leadership, both in the academic and practitioner arenas. The Center will award competitive grants for faculty and student research that will result in an article, book or teaching materials (e.g., case studies) on the subject of ethical leadership or ethics in the professions. In its early stage of development, the Center will place priority on research areas that are aligned with the Founding Faculty’s capabilities and interests. These include the ethics of international business, the implications of the Sarbanes-Oxley Act of 2002 for management practice, and the ethical aspects of the global outsourcing of U.S. jobs. Examples of future research projects might include: an integrated theory of ethical behavior; impact studies of corporate social responsibility programs; impact studies of global ethics principles (e.g., Sullivan Principles), ethics certifications, and business ethics centers; developing and validating instruments for measuring ethical behavior



in organizations; and the relationship between ethical behavior and organizational culture, conflict management, and individual courage. College Accomplishments The faculty of the College of Business Administration has produced intellectual contributions in ethical leadership, business ethics, corporate governance, and ethics-related issues in the business disciplines. The following are some of the articles that CBA faculty published in refereed scholarly journals: • “Gifted Pollution Allowances: Recognizing a Liability to Society,”

Critical Perspectives on Accounting, Herbert G. Hunt III (Accountancy)

• “The ‘Threat Hypothesis,’ Personality, and Attitudes toward Diversity,” Journal of Applied Behavioral Science, Judy P. Strauss (Management/HRM) & Peter A. Ammermann (Finance)

• “The 1998 OECD Convention: An Impetus for Worldwide Changes in Attitudes toward Corruption in Business Transactions,” American Business Law Journal, Barbara C. George & Kathleen A. Lacey (Business Law)

• “Globalization, ‘Asian Values,’ and Economic Reform: The Impact of Tradition and Change on Ethical Values in Chinese Business,” Cornell International Law Journal, Clyde D. Stoltenberg (International Business)

• “Codes of Ethics as Signals for Ethical Behavior,” Journal of Business Ethics, Ted H. Shore (Management/HRM)

• “The Contagious Leader: Impact of Leader’s Affect on Group Member Affect and Group Processes,” Journal of Applied Psychology, Thomas Sy (Management/HRM)

• “Advertising Disclosures: Clear and Conspicuous or Understood and Used?” Journal of Public Policy and Marketing, Ingrid M. Martin (Marketing)

Programs for Academic Year 2004/05 The College of Business Administration has recently launched the Global Outsourcing and Public Policy Initiative (GOPPI), which is a multi-disciplinary, multi-institutional program (see Appendix B, pages 33-35) designed to provide policy makers, key



stakeholders, and the public with the data and analyses required to make informed decisions regarding global outsourcing. Global outsourcing, particularly the “offshoring” of information technology (IT) and IT-related functions, has been at the forefront of current debate in the academic world and the popular press; of immediate concern in almost every sector of the workforce; and already giving rise to uninformed or misinformed policy decisions. It raises several ethical issues, such as codes of conduct in international business, global labor standards and workers’ rights, and cross-cultural management, that fall within the purview of the Center for Ethical Leadership. A one-day National Roundtable on Global Outsourcing Initiatives is being planned for 2005 to discuss offshoring-related issues, as well as the policy and educational implications of U.S. global outsourcing and offshoring initiatives. The College’s GOPPI activities to date have been funded in part by a grant from The Boeing Company.

Education: Preparing Ethical Leaders Planned Initiatives The Center for Ethical Leadership proposes to impact the curriculum at California State University, Long Beach through four major educational initiatives: Ethics across the Curriculum, Graduate Fellowship in Ethical Leadership, Leader-In-Residence Program, and California Leadership Academy. The Center for Ethical Leadership will implement an Ethics across the Curriculum initiative, which will financially support the infusion of business ethics and ethical leadership in undergraduate and graduate courses in the College of Business Administration and other colleges with partnerships with CBA. The Center will work with the University’s Community Service Learning Center to advance the integration of community service into academic courses. This initiative will involve grants for the development of case studies, teaching materials (e.g., scenarios on bribery, plant relocation, product safety, and work-life balance), new courses, and textbook scholarships for Community Service Learning students. Through a Graduate Fellowship in Ethical Leadership, the Center will strive to develop the leadership potential of selected students enrolled in the MBA Program. In the long term, the Center will sponsor a Leader-in-Residence program to bring outstanding



leaders to the College and will study the feasibility of organizing an annual California Leadership Academy to prepare student leaders from around the state in meeting the challenges of ethical leadership in business and the professions. College Accomplishments The College of Business Administration presently offers the following four courses that have a business ethics component: FIN 320 Legal and Regulatory Environment of Business (undergraduate-level), FIN 520 Legal, Regulatory, and Ethical Environment of Business (graduate), FIN 624 Cyberlaw, and MGMT 326 Management and Society. The College recently developed jointly with the College of Liberal Arts (Department of Philosophy) CBA 400/PHIL 400 Business Ethics, which be offered starting Fall 2005 as a team-taught course (see Appendix C, pages 36-38) that will satisfy the University’s General Education Capstone requirement. The College of Liberal Arts also offers the following three ethics courses: PHIL 362I Ethics and Computer Technology, PHIL 363 Ethical Theory, and PHIL 403I Medical Ethics. Programs for Academic Year 2004/05 The College of Business Administration will allocate $10,000 from a gift from The Boeing Company to offer two grants to support either research on business ethics or the development of a teaching module that aims at clearly integrating and considering ethical concepts in an existing business course (other than FIN 320, FIN 520, FIN 624, and MGMT 326). Faculty recipients will be urged to seek publication of their grant-supported work.

Leadership and Management of the Center


Section

5 Leadership and Management of the Center

Leadership of the Center The Dean of the College of Business Administration, acting as Co-Director, will provide the strategic leadership of the Center for Ethical Leadership. The Dean’s direct involvement will ensure the continuity of ethical leadership as a top priority of the College’s senior leadership. The Dean will be assisted by a faculty Co-Director and a graduate student assistant. As Co-Director of the Center for Ethical Leadership, the Dean will have the following responsibilities: • Develop the Center’s vision, strategy, and goals, in consultation

with the Center’s key stakeholders. • Manage external relationships, including communicating with

stakeholders and developing community relations. • Manage the Center’s improvement and change, including measur-

ing organizational performance and benchmarking performance vis-à-vis similar centers in the nation.

To enable CSULB in the future to attract and retain a nationally renowned academic leader for the College of Business Administration, the creation of an endowed Dean’s Chair in Ethical Leadership is proposed, to be granted to future deans of the College. It is estimated that a $1,500,000 endowment for the Dean’s Chair will achieve this objective, given that CSU business deans’ average compensation is less than 80 percent of the national average for AACSB-accredited business schools. The endowment should enable the College to attract an eminent scholar with top credentials in leadership education and research and a distinguished record of personal leadership experience at the highest levels.



During the incumbency of Dean Luís Calingo, the proceeds from the Dean’s Chair endowment (if already available) will be utilized to pay the salary of the Center’s Managing Director. Following establishment of the Dean’s Chair, the Managing Director and his/her staff will be appointed as CSULB Foundation employees whose positions will be funded by future private gifts and foundation grants.

Management of the Center The Dean of the College of Business Administration, in consultation with the Provost and the Center’s Governing Council, will appoint a Faculty Co-Director (on reimbursed assigned time) and a Managing Director. These personnel will operate out of the Dean’s Office suite, with the Dean allocating a standard-sized office for the Center. The Faculty Co-Director of the Center for Ethical Leadership shall be appointed from among the tenured and tenure-track faculty of the College of Business Administration who are academically qualified in the field of ethical leadership, business ethics, or leadership. The Co-Director will have the following responsibilities: • Provide support that will lead to an understanding of markets and

clients by (a) conducting qualitative and quantitative assessments for determining client needs and (b) measuring client satisfaction.

• Lead in the design of new programs and services to be offered by the Center. This includes (a) developing new program/service concept and plans, (b) designing, building, and evaluating pilot/prototype programs and services, and (c) evaluating and refining existing programs and services.

• Administer education and research grants for CSULB faculty, including call for proposals and organization of evaluation committees.

• Develop and manage the Center’s human resources. This includes (a) supervising the Managing Director and all staff assigned to the Center and (b) identifying the education and training needs of Managing Director and assigned staff.

• Assist the Dean in managing external relationships, with focus on relationships within the university. This includes (a) developing the Center’s public relations program and (b) working with the



CSULB Foundation and the CSU Office of General Counsel in managing legal and ethical issues.

• Assist the Dean in managing the Center’s improvement and change by conducting quality assessments and improving processes and systems, including managing transition to maturity.

The position of Managing Director of the Center for Ethical Leadership shall hold an exempt administrative staff position. He/she will be appointed as an employee of the CSULB Foundation, following a search that will be conducted by the Dean of the College of Business Administration and the Governing Council of the Center for Ethical Leadership. The Managing Director will have the following responsibilities: • Support the Faculty Co-Director in (a) designing the Center’s

programs and services and (b) preparing new programs and services for full-scale implementation.

• Market and promote the Center’s programs and services. This includes (a) marketing programs and services to relevant client segments by addressing pricing, advertising, budgeting, selling, and negotiations, and (b) fulfilling requests for customized programs and services.

• Arrange all logistical support required for the efficient delivery of the Center’s programs and services to the community and the public. This includes (a) planning for and acquiring necessary supplies and equipment, (b) coordinating the provision of services to clients, and (c) providing logistical support to the Faculty Co-Director in the administration of education and research grants for CSULB faculty.

• Invoice and service clients. This includes (a) billing the client (including training participants) and (b) responding to information requests and managing complaints from clients.

• Manage information resources. Work with the College’s Instructional Technology Office to plan for information resource management, develop support systems, implement systems security and controls, and manage information.

• Manage the Center’s financial resources. This includes (a) developing budgets, (b) working with the CSULB Foundation and the College Administrative Services Manager in processing financial and accounting transactions, and (c) reporting financial information to the Co-Directors and the Governing Council.



Governance of the Center

The Dean of the College of Business Administration, in consultation with the Provost, will establish a Governing Council to provide guidance to the Center in the areas of leadership and program development and will be the principal arm of the Center in the securing of private gifts and external support to the Center. It is envisioned that a fully developed Governing Council will have 10-15 members. The Governing Council will have the following responsibilities: • Participate in the development of the Center’s vision and strategy

by helping (a) monitor the external environment, (b) define the Center’s business concept and organizational strategy, and (c) design the organizational structure and relationships between the Center and other entities.

• Assist the leadership and management of the Center in understanding the Center’s markets and clients by helping (a) determine client needs and wants and (b) monitor changes in market or client expectations.

• Manage external relationships, including communicating with stakeholders, developing community relations, and spearheading fund-raising and development activities for the Center.

The following leaders are the projected founding members of the Governing Council of the Center for Ethical Leadership: Chairman Mick Ukleja President, LeadershipTraQ Cypress, California Members Dorothy Z. Abrahamse Dean, College of Liberal Arts California State University, Long Beach



Howard E. Chambers Vice President, Program Management and Independent Review The Boeing Company Seal Beach, California Stephen Feldman President and Chief Executive Officer The Astronauts Memorial Foundation Kennedy Space Center, Florida Jack E. Hinsche Managing Partner Windes & McClaughry Accountancy Corp. Long Beach, California J. Michael Hostetler Associate Vice President for Student Services and Dean of Students California State University, Long Beach Michael Josephson Founder and President Josephson Institute of Ethics and CHARACTER COUNTS! Los Angeles, California Robert L. Lorber President, Lorber Kamai Consulting Group Chair, Dean’s Advisory Council, University of California at Davis Davis, California Curtis L. Pringle Mayor of Anaheim, California Speaker of the California Assembly, 1996 William S. Shumard Executive Director of Athletics California State University, Long Beach Bob Stone Energizer in Chief, The Public Strategies Group Deputy Assistant Secretary of Defense, 1981-1993 Chair, National Performance Review Task Force, 1993-1999



Ex-Officio Voting Members Luís Ma. R. Calingo Dean, College of Business Administration California State University, Long Beach Faculty Co-Director of the Center for Ethical Leadership College of Business Administration

Resource Requirements


Section

6 Resource Requirements

Annual Financial Requirements The College—based on the experience of the Center for Ethical Leadership at the LBJ School of Public Affairs, University of Texas at Austin—estimates the funding gap of the Center for Ethical Leadership to be about $80,000 for the first operating year (FY 2005/06). A fully operational Center for Ethical Leadership that offers the full range of programs and services outlined earlier would require an annual private investment of about $200,000, broken down as follows:

BUDGET ITEM 2005/06 2006/07 2007/08 PROGRAM ADMINISTRATION 66,954 125,298 125,298 PROGRAM OPERATIONS Outreach Component 10,000 20,000 20,000 Research Component 15,000 30,000 30,000 Education Component

“Ethics Across the Curriculum” Grants 10,000 20,000 20,000 Graduate Fellowships in Ethical Leadership 32,000 64,000 64,000 Leader-In-Residence Program 25,000 25,000 Supplies and Services 5,000 10,000 10,000 Sub-Total for Education Component 47,000 119,000 119,000

University Overhead Charges 1,854 8,055 8,748 TOTAL EXPENDITURES 140,808 302-353 303,046 Less: Revenues and Contributions 61,605 76,954 113,303 GOAL FOR GIFTS, GRANTS, & CONTRACTS 79,203 225,399 189,743

The College estimates that if the operations of the Center for Ethical Leadership are to be completely supported by operating revenues and endowment proceeds, a total endowment of about $4,000,000-$4,500,000 will be required. This estimate assumes a five percent (5%)



annual spending rate on endowments, which is the national average spending rate for educational endowments (2005 Commonfunds Benchmarks Study®). Details of the budget cost estimate are provided in the Proforma Statement of Sources and Applications of Funds, provided in the Appendix. The College of Business Administration, in collaboration with the Office of the Provost and the Division of University Relations & Development, will approach the following private foundations for seed funding of the different components of the program: The Boeing Company, Citigroup Foundation, DENSO North America Foundation, Eli Lilly and Company Foundation, and The Pew Charitable Trusts.

Implementation Schedule YEAR 1 (September 2004-August 2005) 1. Provide the following competitive faculty grants:

a. “Ethics Across the Curriculum”– one award b. Research on ethical leadership – one award c. Development of educational program for the community – one

award 2. Explore seed funding opportunities from the following foundations:

The Boeing Company, Citigroup Foundation, DENSO North America Foundation, Eli Lilly and Company Foundation, and The Pew Charitable Trusts.

3. Establish linkages with university or not-for-profit centers or institutes with comparable missions. These include: Global Diversity Institute, Joseph & Edna Josephson Institute of Ethics, Ethics Officer Association, International Business Ethics Institute, The Aspen Institute, The James MacGregor Burns Academy of Leadership, and the Greenleaf Center for Servant Leadership.

4. Fund-raising for Center’s resource need of $80,000 for 2005/06 academic year.

5. Obtain final University authorization for the Center. 6. Study the feasibility of a campaign to endow the Center and/or its

components. Endowment opportunities are as follows: a. Endowed Center for Ethical Leadership — from $2,500,000 to

$3,000,000



b. Endowed Dean’s Chair in Ethical Leadership — $1,500,000 c. Endowed Faculty Grants (external course/program

development, faculty research, and curriculum development) — 12 endowments @ $150,000 each

d. Endowed MBA Tuition Scholarship (Graduate Fellowship in Business Leadership) – two endowed scholarships @ $640,000 each

e. Endowed Leader-In-Residence Program — $500,000 7. Formulate and implement media and public relations plan for the

Center. 8. Appoint Faculty Co-Director and commence search for Managing

Director and graduate student assistant. YEAR 2 (September 2005-August 2006) 1. Hire the Managing Director and graduate student assistant. 2. Provide the following competitive faculty grants:

a. “Ethics Across the Curriculum”– two awards b. Research on ethical leadership – two awards c. Development of educational program for the community – two

awards 3. Award MBA tuition scholarship to one full-time student joining the

MBA program during 2005/06 academic year. 4. Fund-raising for Center’s resource gap of $210,000 for 2006/07

academic year. This financial need will be reduced by any endowments established in behalf of the Center.

YEAR 3 (September 2006-August 2007) 1. Provide the following competitive faculty grants:

a. “Ethics Across the Curriculum”– four awards b. Research on ethical leadership – four awards c. Development of educational program for the community – four

awards 2. Award MBA tuition scholarships to two full-time students joining

the MBA program during 2006/07 academic year. 3. Conduct feasibility study for California Leadership Conference,

with a target of 100-150 participants. 4. Fund-raising for Center’s long-term needs of about $200,000 per

year.



YEAR 4 (September 2007-August 2008) 1. If found to be a feasible, self-supporting venture, conduct California

Leadership Conference, with a target of 100-150 participants. 2. Provide the following competitive faculty grants:

a. “Ethics Across the Curriculum”– four awards b. Research on ethical leadership – four awards c. Development of educational program for the community – four

awards 3. Award MBA tuition scholarships to two full-time students joining

the MBA program during 2007/08 academic year. 4. Fund-raising for Center’s long-term needs of about $200,000 per

year.



Proforma Statement of Sources and Uses of Funds



Notes to Proforma Statement

1. It is estimated that the Certification in Workplace Diversity and Ethical Pluralism, which the Center will offer in partnership with the Global Diversity Institute starting 2005, will generate for the College indirect costs recovery in the amount of $30,000 during the 2005/06 academic year, $45,000 during 2006/07, and $60,000 during 2007/08 and every year thereafter. This allocation is based on the indirect overhead rate of $1,200 per participant negotiated with the Global Diversity Institute, based on a program fee of $7,500 for an 8-CEU certification course, and at least 16 participants every year.

2. The Center plans to offer through UCES one non-degree course during the 2005/06 academic year, two courses during 2006/07, and four courses during 2007/08 and every year thereafter. Based on consultations with UCES, the net revenue to the Center is estimated to be about $3,700 per course.

3. The proposed University contributions to the Center include: (a) CBA assigned time to the Faculty Co-Director of twelve weighted teaching units (WTUs)—the equivalent of four courses—during the 2005/06 academic year, nine WTUs (i.e., three courses) during the 2006/07 academic year and six WTUs (i.e., two courses) during the 2007/08 academic year, (b) CBA graduate assistant support for 20 hours per week during the 2005/06 and 2006/07 academic years and ten hours/week during the 2007/08 academic year, and (c) a seed grant for non-degree program development to be provided by UCES. College of Business Administration sources of support will include State General Fund, State Lottery Fund, and the Continuing Education Reserve Fund. Complete self-sufficiency from CBA sources of support is estimated to begin with the 2008/09 academic year.

4. The $10,000 beginning cash on hand represents the faculty grant received from The Boeing Company in August 2004.

5. The amount indicated for “Estimated Future Gifts, Grants, and Contracts” is a plugged figure and represents the funds that the Center will need to raise every year from external sources, including government agencies and private foundations. The



annual fund-raising goal is below the College’s annual receipts from private gifts and grants during the past three fiscal years.

6. The Faculty Co-Director will be provided with assigned time support at the rate of 12 WTUs during the 2005/06 academic year and thereafter. As indicated in Note 3 above, this support will initially come from CBA sources and will decline to zero starting the 2008/09 academic year.

7. The Managing Director, an administrative staff position, will be a CSULB Foundation employee who will have a 50 percent time base during the 2005/06 academic year and a 100 percent time base starting the 2006/07 academic year. The Managing Director’s equivalent position in the CSU will be Administrative Analyst/Specialist (12 month), Exempt II, which currently has an annual salary range of $50,424-$75,636.

8. The Center will be provided with a half-time graduate assistant (10

hours/week for one academic year) during the 2004/05 academic year and a full-time graduate assistant (20 hours/week) starting the 2005/06 academic year. As indicated in Note 3 above, this support will initially come from CBA sources and will decline to zero starting the 2008/09 academic year.

9. “Operating Expenses and Equipment” is estimated at 24 percent of salaries (including faculty assigned time and graduate assistant).

10. Each faculty grant for outreach (non-degree course/program development), research, or teaching (“Ethics Across the Curriculum”) will be a stipend in the amount of $5,000. These grants will be made available to faculty selected through a competitive process. One grant in each area (i.e., outreach, research, and education) will be awarded during the 2004/05 academic year, two grants in each area for a total of six grants will be awarded during the 2005/06 academic year, and four grants in each area for a total of 12 grants will be awarded during the 2006/07 academic year and every year thereafter.

11. Each faculty recipient of either a research or a teaching grant (per Note 9 above) will be allocated “Supplies and Services” support in the amount of $2,500.



12. The College will offer, in partnership with UCES, a one-year, full-time, self-supporting Accelerated MBA Program starting the 2005/06 academic year. The planned tuition fee (48 units) for this program is about $32,000. The Center proposes to offer one full tuition scholarship to an outstanding, newly admitted Accelerated MBA student during the 2005/06 academic year and two full tuition scholarships during the 2006/07 academic year and every year thereafter.

13. In the Leader-In-Residence Program, the Center will invite prominent former or current office holders, business executives, government officials and leaders of not-for-profit organizations to spend time in residence at the College, where they will interact with students and faculty and be available to address organizations throughout Southern California. Leaders-in-residence will engage CSULB students and faculty with the aim of fostering an interdisciplinary leadership community at the University. Leaders-in-residence will work with CSULB students and faculty in a variety of settings, including formal classroom instruction, informal topical discussions with small groups of students and faculty, and scheduled or informal meetings with individuals. The estimate of $25,000 is based on the cost of an actual one-week Leader-In-Residence in the Center for Ethical Leadership at the University of Texas, Austin.

14. The CSULB Foundation overhead charges are estimated at eight

percent of all expenditures (except tuition scholarships for the Accelerated MBA Program) that are not funded by State General Fund, State Lottery Fund, or Continuing Education Reserve Fund sources.

Appendix A


Appendix

A Certification in Workplace Diversity and Ethical Pluralism

Overview The first fee-based educational program that the Center for Ethical Leadership (CEL) will provide to the business community will be a new Certification in Workplace Diversity and Ethical Pluralism that will be offered in collaboration with the Global Diversity Institute (GDI). Completion of the program will lead to designation as a Certified Professional in Workplace Diversity and Ethical Pluralism that the Center will award, along with eight continuing education units (CEUs) of professional development credit. The successful participant will be authorized to use the GDI-CEL logo to establish one’s professional branding, much like similar professional certifications. Objectives of the Certification The Certification in Workplace Diversity and Ethical Pluralism is designed to develop and equip people to be Certified Professionals in Workplace Diversity and Ethical Pluralism within their organizations. Certification equips each participant to become an internal consultant at the strategic level, working with management in the creation and nourishment of a vital organization. Specifically, by the end of the program, each participant will be able to: 1. Become an internal consultant at the strategic level, working with

management in the creation and nourishment of an ethical pluralist vital organization;

2. Be able to diagnose workplace issues and facilitate workplace improvements and solutions to challenges;

3. Communicate the process to secure stakeholder buy-in; 4. Instill, as an organizational norm, a social context for diversity and

vitality that promotes the positive self-regulation of ethical behaviors, avoiding dysfunctional intercultural conflicts and future Enron-type disasters;

Appendix A


5. Enable external diversity practitioners to be better equipped to build their practices in a way that addresses 21st century challenges. They will learn about and be able to use the interdependence between organizational dynamics, knowledge management, ethics, organizational cultures of vitality and diversity in preparing their clients for the fast-changing world.

There will be two certification processes. The first includes two semesters (80 hours) of coursework. The second will be a contracted offering of 80 hours of coursework negotiated with the client and customized to a schedule and location of their preference. Each group will proceed through the certification process as a cohort, providing the basis for considerable group reinforcement, support and resource provision, and networking. As the GDI methodology is anchored in ethical practices and behavior at both the organizational and individual level, ongoing applied research being conducted by the Center for Ethical Leadership will be continually integrated into the GDI certification process when appropriate to both workshops and specific courses. The program will be enhanced by CEL-GDI collaborative research on such topics as the perils of relativism masked as valuing diversity practices, workplace religious pluralism, groupthink, the ethical component of a workplace constitutional project, and refining our organizational vitality assessment tool. Rationale for the Program To date, there exists no recognized or standardized certification process or program for future and present human resource managers, diversity consultants or other workplace practitioners in the arena of multiculturalism or diversity management and workplace ethics. Yet, the need exists and many different institutions are speaking of answering this need. For example:

• SIETAR (Society for Intercultural Education Training and Research) recently sent out a survey to professionals examining the need for certification.

• SHRM (Society of Human Resources Managers) states the principles they consider to be involved in diversity work, yet it does

Appendix A


not have a certification process that can address these challenges and principles.

• ASTD (American Association of Training and Development) has begun to address a training certification process, yet it does not have a module for diversity and have contacted the GDI for assistance. These institutions, among others, are on the verge of offering certification programs given the need and the paucity of rigorous education addressing this need.

All of these occur within a context of rapid change, increased identity militancy leading to diversity conflicts, ballooning lawsuits, global integration, and ethical lapses. Through this proposed certification program, the Center seeks to not only identify these challenges, but also address their solutions in a training process professionally recognized across industries, much like technology certifications are recognized and needed for career access (e.g., Cisco certification for telecom server technicians or ISO 9000 quality consultants). This combined and synergized approach to diversity and ethics is unique. The original contribution that a combined CSULB-CEL and GDI certification process could provide the marketplace cannot be overstated. As previously noted, other institutions are pursuing certification programs that incorporate methodologies used in the past that have been found to be ineffective, less thorough and ungrounded in recent empirical research. Unlike other diversity practices, we seek to synergize otherwise competing and isolated fields—organizational development, ethics, knowledge management, and diversity—for greater effectiveness and efficiency. This methodology will be codified into a certification process that is thorough in both rigor and global application. Faculty Champion Dr. Judith P. Strauss Assistant Professor of Human Resource Management

Appendix B


Appendix

B Global Outsourcing and Public Policy Initiative

Overview The Global Outsourcing & Public Policy Initiative is a multi-disciplinary, multi-institutional program designed to provide policy makers, state legislators, key stakeholders, and the public with the data and analyses required to make informed decisions regarding global outsourcing. Global outsourcing, particularly the “offshoring” of IT and IT-related functions, is at the forefront of current debate in the academic world and the popular press; of immediate concern in almost every sector of the workforce; and already giving rise to uninformed or misinformed policy and legislative decisions. Offshoring raises several ethical issues, such as international codes of conduct, workers’ rights, and cross-cultural management, which fall within the purview of the Center for Ethical Leadership. Rationale for the Initiative According to both the U.S. Bureau of Labor Statistics and Forrester Research, 3.3 million U.S. jobs, along with $186 billion in wages, will leave the country by 2015. Based on data and analyses generated by these two sources, most affected will be three major job sectors: manufacturing, information technology, and financial services. After these data were originally reported (March 2004), significant disparities in politics and the press have emerged regarding: (a) the projected and actual number of jobs that will leave the U.S. over the next 3-5 years, and (b) the ramifications of outsourcing IT and IT-related functions. However, the growing disparities and lack of valid and reliable scientific research have done little to stem the tide of new legislation being proposed at the state and federal levels. At present, at least 31 states and Congress are considering legislation in response to the public outcry, but based upon little or no scientific research and analyses.

Appendix B


Several important questions remain unanswered. How will global outsourcing affect the U.S. economy now and in the future? What are the short- and long-term benefits and costs of global outsourcing (in general), and of offshoring research, development, and design (in particular)? Will national and global security need to be re-conceptualized in the future? Do changes in foreign and domestic policies, including legislation, need to be made in order to strike a balance between economic growth and quality of life? Will new modes of formal education and training be needed to facilitate business transformation, workforce development, human resource management, supply chain management, and day-to-day operations involving offshore partners? What role does information technology play with respect to each of these issues? What are potential vulnerabilities and safeguards to manage risks? These are just a few of the questions that policy makers need to address if they hope to propose feasible and effective state and federal legislation. As creators of this initiative, we seek to increase the quality of policy decisions about global outsourcing by developing a single, credible source of scientific knowledge to which all interested parties may turn for the latest data, analyses, and recommendations. Proposed Actions To accomplish this mission, we are initiating a series of global roundtable discussions that will serve as a springboard for ongoing dialogue among key stakeholders. These roundtable discussions will discuss not only the ethical issues of offshoring, but also the implications for corporate competitiveness, economic development, job growth, and productivity. Second, we are creating an easily accessible, interactive, web-based repository of scientific data and analyses about global outsourcing that will bring together the published works of the best researchers from various disciplines. Third, we are establishing a research consortium for scholars around the world who wish to collaborate regarding the subject. We will be a neutral, dispassionate, apolitical place to turn for members of Congress, state legislators, and the public who wish to educate themselves about the issues. We currently anticipate two major councils driving the initiative: (a) an academic/research advisory council, and (b) a public policy council. Each individual or group that comprises the councils will be given one

Appendix B


voice and one vote. Financial participation is not a condition of membership. We will seek support from relevant funding sources; however, financial support will have no bearing on policy recommendations. Our strategic plan includes two additional elements of vital importance: ongoing evaluation, and long-term sustainability. We have engaged the services of an experienced, independent evaluation firm to guide us in conducting a formal needs assessment, and in developing a comprehensive evaluation plan from the outset. Similarly, we are designing our structure and programs in order to ensure that this initiative will become a permanent resource for policy makers and the people they serve. California State University, Long Beach (CSULB) is in conversation with San Jose State University (SJSU), UC Berkeley, UCLA, and USC to catalyze this initiative. Each of these partners brings significant strengths to the initiative. CSULB and SJSU (along with the 21 other campuses that comprise the CSU system) primarily serve and educate the people most directly affected by global outsourcing: middle managers and working-class IT professionals. UC Berkeley, a world-renowned public university, is home to the prestigious Berkeley Roundtable on the International Economy. BRIE’s “high-quality research has earned the respect of business and both sides of the aisle in Washington.” UCLA, one of the most prestigious public universities in the U.S., is home to the Center for Civil Society, whose objectives include “monitoring major developments affecting civil society, including globalization, and the changing roles of government and business.” USC, the largest private university in California, is home to both the Center on Philanthropy and Public Policy, and the Homeland Security Center of Excellence. Both of these centers have much to contribute to the dialogue. All five major institutions are already deeply engaged in these and related issues. Faculty Champion Dr. Deborah R. Gaut Assistant Professor of Business Communication

Appendix C


Appendix

C Business Ethics: General Education Capstone Course (CBA 400/PHIL 400)

Catalog Description This interdisciplinary course will enable students to learn: (1) the various types of ethical dilemmas that repeatedly take place in business organizations today and (2) the concepts and tools needed to manage these complex value conflicts for the well being of individuals, organizations, and society. By learning and applying various analytical tools from the fields of philosophy, psychology, organizational sciences, and the emerging cross-disciplinary field of crisis leadership, complex value conflicts that derive from an organization’s intertwined web of stakeholders can be clearly identified and evaluated. Then the most ethically enlightened decisions and actions can be selected and implemented. Overview CBA 400 Business Ethics enables students to become more aware of, and skilled at, managing the many ethical dilemmas that they will face while being employed in a business organization (as well as in other types of organizations). Essentially, every organization is embedded in a complex environment of internal and external stakeholders (e.g., fellow employees, senior managers, customers, suppliers, stockholders, competitors, financial institutions, communities, families, nations, and federal, state, and local governments). In today’s interconnected business environment, each of these stakeholders places competing, conflicting demands on the behavior (decisions and actions) of organizational members. These conflicting demands generate many types of value conflicts including: the privacy and safety of employees; honesty, loyalty, and whistle blowing; truth in advertising; product liability; responsibility for the community and the environment; discrimination in the workplace; and multinational cultural challenges. For each value conflict, choosing and implementing an ethical decision can be guided by a deep understanding of philosophical frameworks, psychological processes,

Appendix C


group dynamics, organizational culture, national cultures, systems theory, and leadership practices. Pedagogy On the first day in class, students will be organized into small groups (of about six to eight diverse members each) that will continue throughout the semester. In these Ethical Learning Groups (ELGs), students will have the opportunity to evolve into a microcosm of society in order to discuss ethical issues, analyze business cases, and manage value conflicts. A final group project, constituting at least 25 percent of each student’s final grade, will enable the students to not only analyze a complex business case with diverse others, but also to address and resolve the ethical conflicts that will materialize in their own group (e.g., confronting the classic free-rider problem, learning to use agreed-upon sanctions in order to enforce the group’s cultural norms, and determining the grade distribution on the final group presentation among group members). The experiential learning derived from these ongoing group activities and value conflicts will help students learn—most meaningfully—about ethical dilemmas and the conceptual tools for resolving them. 1. Identify and apply the major moral theories of the Western

philosophical canon to standard issues in business ethics (e.g., the privacy and safety of employees; honesty, loyalty, and whistle blowing; truth in advertising; product liability; responsibility for the community and the environment; discrimination in the workplace; and multinational cultural challenges).

2. Recognize, analyze, and critique business ethics arguments that are part of the contemporary academic literature and public dialogue in this area.

3. Identify and evaluate how issues of diversity (gender, race, class, sexual preference, ability level, etc.) interact with principles of business ethics and actual business practices.

4. Identify, analyze, and constructively criticize their own views and those of their peers on selected topics in business ethics, with the aim of systematically evaluating their grounding and considering possible reformulations of the positions where necessary.

Because of the interdisciplinary—and applied—nature of this course, it is vital that the instructor not only be well-versed in the study of ethics

Appendix C


and the varieties of philosophical frameworks and arguments, but the instructor must also be experienced in designing and implementing ethical programs and change management in businesses and other types of organizations. If these conjoint areas of knowledge and skills are not evident in one instructor, it is essential to develop a team approach to this course with two instructors teaching each class session together (specifically one ethics instructor from the philosophy department and another experienced instructor from CBA). Otherwise, it is unlikely that the students will receive the kind of applied, interdisciplinary course—rich in ethical theory and management practice for today’s organizations—that is intended with this course. Course Developers Dr. Ralph H. Kilmann Visiting Scholar, College of Business Administration, 2001-2003 Dr. Jeff Moriarty Assistant Professor of Philosophy CBA Faculty Champions Dr. Kathleen A. Lacey Professor of Legal Studies in Business Dr. Linda A. O’Hara Assistant Professor of Organizational Behavior

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Center for Ethical Leadership