Why management professors (should) teach ethics in the classroom

International Journal of Value-Based Management 9:141-152, 1996. 1 41 (~) 1996 Kluwer Academic Publishers. Printed in the Netherlands.

Why Management Professors (Should) Teach Ethics In The Classroom

ANDREW SIKULA SR. Department of Management, College of Business, California State University, Chico, Chico, California 95929-0031, U.S.A.

Abstract. This article explains in comprehensive macro and micro terms why business management professors teach or should be teaching ethics as part of their classroom subject matter. Ten different perspectives, starting with transcendental and global, and ending with departmental and individual, are presented in convincing fashion. Ethics is an extremely popular topic today inside and outside of business schools. This article summarizes why; and it attempts to encourage professors who are not yet a part of the new environmental-ethical era of the 1990s to join the movement.

Key words: business ethics, moral management, teaching ethics, management training, classroom ethics, macromorality, micromorality

1. Introduction and conceptual framework

Management and other business professors in addition to other educators (should) teach ethics in the classroom to maintain multiple missions which include macromorality and micromorality dimensions and components. These visions involve 10 perspectives which for conceptual framework purposes can be divided equally into two major groups as indicated below:

Macromorality Micromorality

1. Transcendental 1. Accreditational

2. Global 2. Professional

3. National 3. Managerial

4. State 4. Departmental

5. Organizational 5. Individual

These 10 parameters will be presented and discussed in this article begin- ning with macromorality visions in the sequence noted above, and then pro- ceed with the five micromorality missions also in the order previously identi- fied. Integrated collectively, these 10 constituencies are today demanding that

142 ANDREW SIKULA SR.

managers perform their duties and responsibilities in both an environmentally safe and an ethically correct manner.

A good departure point is to realize that indeed there is much work still to be done. Some famous people have encapsulated the problem succinctly. Omar Bradley has stated: "The world has achieved brilliance without conscience. Ours is a world of nuclear giants and ethical infants." Humankind's major mission is or should be to educate itself and it's offspring. Ethical education must be the central core of this lifelong learning.

2. Macromora l i ty

2.1. Transcendental

All of the world's religions gathered for only the second time in the history of mankind in Chicago during the summer of 1993 [1]. All of the earth's faiths were represented by their key leaders including nontheistic (godless) religions. These 8,000 plus delegates to the Parliament of the World's Reli- gions hammered out "A Declaration of Global Ethics" which was signed by the principal personalities of all of the worldwide sects. Part of this statement reads: "We affirm that a common set of core values is found in the teach- ings of the religions, and that these form the basis of a global ethic. . . We affirm that there is an irrevocable, unconditional norm for all areas of life, for families and communities, for races, nations, and religions.. . We must not live for ourselves alone, but should also serve others. . . We pledge to work for transformation in individual and collective consciousness, for the awakening of our spiritual powers through reflection, meditation, prayer, or positive thinking, for a conversion of the heart" [2]. Table 1 summarizes the "Irrevocable Directives" contained within the Declaration.

The United Nations initially in 1948 developed a "Universal Declaration Of Human Rights" which has had few changes since its inception [3]. Thirty fundamental freedoms and inalienable rights, along with the basic concept of dignity and worth of all human beings, comprise the universal declaration. Table 2 shows human rights and human freedoms established by 30 Articles which make up the United Nations Declaration of Human Rights.

2.2. Global

The new ethical-environmental era includes transformed older organizations along with many newer institutions which promote global environmental and ethical concerns [4]. One example only of a newer entity is the World Business Academy. Indicated below are statements from official documents from the

WHY TEACH ETHICS? 143

Table 1. Parliament of the world's religions: Irrevocable directives

THE DECLARATION OF A GLOBAL ETHIC 1993 Parliament of the World's Religions

Chicago, Illinois, USA PRINCIPLES

"IRREVOCABLE DIRECTIVES" 1. Commitment to a Culture of Non-Violence and Respect for Life

(Do Not Kill) 2. Commitment to a Culture of Solidarity and a Just Economic Order

(Do Not Steal) 3. Commitment to a Culture of Tolerance and a Life of Truthfulness

(Do Not Lie) 4. Commitment to a Culture of Equal Rights and Partnership Between Men and Women

(Do Not Commit Sexual Immorality) (Respect and Love One Another)

Source: Parliament of the World's Religions, Chicago, Illinois.

World Business Academy explaining this philosophy and mission, plus its view of the changing role of business in the world.

"World business leaders have emerged as the first global citizens. Engaged in commerce, business leaders understand the interdependence of nations, and that the health of society and the preservation of our earth are important to the future prosperity of the business enterprise. Business fosters economic and cultural interdependence and has helped to create the awareness of one humanity, on one planet, all sharing a common fate. And, as the dominant institution on the planet, business holds the key to the transformation of our global society, away from intractable problems, and toward a world that works for everyone. Around the globe, we are witnessing a fundamental questioning, both individual and institutional, of our most basic assumptions about who we are, the world we live in, and what is ultimately important. Increasingly, the leading thinkers of our day are describing this phenomenon as being driven by an emerging new paradigm - a new understanding of reality - which is shaking our traditional assumptions and institutions to the roots. The World Business Academy arose out of the conviction that the shape of the future is our choice, and that business, if it adopts a new tradition of responsibility for the whole, can be the major contributor to a future that is economically, socially, and ecologically viable for all." The World Business Academy is comprised of "people who are pragmatic visionaries who stand in support of social responsibility and the reform of existing economic and cultural structures" [5].


Table 2. United Nations: 30 Articles Declara- tion of Human Rights

1. Human freedom and equality 2. Nondiscrimination 3. Rights of life, liberty, and security 4. No slavery 5. No torture or cruel punishment 6. Legal representation 7. Equal protection under the law 8. Due process 9. No arbitrary arrest

10. Fair and public trials 11. Presumed innocence 12. Privacy 13. Freedom of movement 14. International asylum 15. Freedom of nationality 16. Marriage and family rights 17. Property ownership 18. Religion 19. Speech, opinion, and expression 20. Peaceful assembly 21. Governance and public service access 22. Social security 23. Right to work and employment choice 24. Rest and leisure 25. Minimum standard of living 26. Free access to education 27. Citizenship and community rights 28. Social order and peace 29. Community duties and responsibilities 30. Nondestruction of rights and freedoms

Source: United Nations, Department of Pub- lic Information, 1994 (1948), New York, New York.

2.3. National

Since its inception the Federal Government has discouraged unethical behav-

ior, and conversely encouraged ethical activities through a blend of efforts by the Legislative, Executive, and Judicial Branches. Authority and responsibility for these efforts have been based on provisions of the United States


Constitution. Dr. William Torpey has written a book entitled Federal Exec- utive Branch Ethics documenting these efforts in 275 pages [6]. In the Leg- islative Branch, Congress has passed ethics legislation, appropriated funds to support ethics programs, conducted oversight hearings, and held impeach- ment proceedings. The General Accounting Office has audited ethics, issued reports, and recommended corrective actions. In the Executive Branch, Pres- idents have provided ethical leadership, facilitated agency adherence to ethical standards, recommended and approved legislation, and issued executive orders. Central staff agencies have implemented legislation and executive orders, inspected agency programs, offered training opportunities, conducted research and published results, engaged in studies of aspects of ethics programs, and provided consultative services. Within the Judicial Branch, courts at all levels have rendered decisions in individual cases involving matters of ethics. Laws and regulations have defined forbidden practices and discouraged corruption and other improper practices. Such laws and regulations have been part of a broader effort to create a positive work environment fostering a genuine commitment to ethics. Time and space are limited here, so only a few examples will be cited. The first official federal code of ethics was established by Postmaster General Amos Kendall in 1829. In 1951 federal personnel directors approved a Federal Creed of Service. A Federal Code of Ethics was adopted by Congress in 1958. President Lyndon Johnson issued Executive Order 11222 in 1965 which prescribed standards of ethical conduct for federal employees. President Carter in 1978 passed the Civil Service Reform Act which among other things established for the first time a statutory protection against reprisals for whistleblowing. President Reagan via an executive order created in 1981 a Council on Integrity and Efficiency whose purpose was to focus upon and improve efforts to deal with the problems of fraud and waste in federal programs and operations. In the late 1980s, President Bush established the President's Commission on Federal Ethics Law Reform, a National Commission on Public Service, and Executive Order 12674 establishing ethical standards for the Executive Branch. In 1989 Congress passed a revised bill to aid whistleblowers called the Whistleblowers Protection Act of 1989 [7]. Late in 1989 Congress passed the Ethics Reform Act of 1989 which per- tains to employees of all three branches of government. "Titles" within this legislation refer to: post-employment restrictions; financial disclosure; gifts and travel; amendments to the U.S. Code; other ethics reforms; limitations on outside employment and elimination of honoraria; and, the establishment of a Citizens' Commission on Public Service and Compensation.

Far and away the most significant modem development affecting ethics applications in industry has been the implementation of the Organizational Sentencing Guidelines in 1991 which demanded stricter penalties for corpora-


tions convicted of wrongdoing [8]. Wrongdoing is related to "due diligence" elements which affect and help to determine the size of penalties and fines. The guidelines first passed in 1987 obtained clout in 1991 when the Fed- eral Sentencing Commission officially adopted revolutionary organizational sentencing guidelines to establish uniformity of punishment for white-collar crimes such as fraud, bribery, anti-trust violations, tax evasion, money laun- dering, and kickback schemes. The Commission is also currently working on corporate sentencing guidelines for environmental violations [9]. The primary danger to organizations of the guidelines is that now enterprises can be held liable for the criminal acts of any of their employees, regardless of rank, if those crimes were committed for the benefit of the company. More recently, President Clinton has instituted ethics pledges which must be signed by all federal employees restricting both current and future lobbying, foreign affairs, post-employment, and trade negotiation activities.

2.4. State

All states have regulations governing the behavior and ethics of their total citizenry. All states have statutes covering the performance and ethics of their hired state employees. And all states prescribe what curriculum subjects must be covered as part of general public instruction [10]. Many of the 50 states have been bold in regards to the teaching of ethics as part of all public instruction. Let's look at one example in the most highly populated, and most geographically and culturally diverse state, namely: California. A provision of California law (which was first adopted in 1874, has since been continu- ously operative with little substantive change - although its numbering and code placement have been shifted from time to time - and is now embodied in Education Code section 44806) states forthrightly: "Each teacher shall endeavor to impress upon the minds of the pupils the principles of morality, truth, justice, patriotism, and a true comprehension of the rights, duties, and dignity of American citizenship, including.., the humane treatment of living creatures... (avoidance of) idleness, profanity, and falsehood, and.. , man- ners and morals and the principles of a free government." Since 1947, the California Education Code has specifically included a requirement in sections 51210 and 51220 for the inclusion of history, civics, and American government in locally adopted courses of study. In 1988, a specific program was enacted into law, Chapter 1462 of the Statues found at Education Code section 44790, regarding the teaching of ethics and civic values in public schools. The California State Board of Education has developed and produced the Moral and Civic Education Handbook which pulls together in a single place perti- nent information about the teaching of character, ethics, morality, and civics in the schools, as well as teaching about religion [ 11 ]. This document was first


produced in 1973, republished in 1988, and revised in 1991. The following ten subjects appear as major parts of this publication: morality; truth; justice; patriotism; self-esteem; integrity; empathy; exemplary conduct; moral interaction and ethical reflection; and capacity to recognize values (respect for family, others, property and law). In keeping with a resolution passed by the California Legislature, Senate Concurrent Resolution 32 (September 15, 1989), copies of the 1991 latest version were sent to all public school teachers in the State of California. Other documents produced by the California Department of Education and/or the State Board of Education have also called for education in morality, civics, and ethics, including the History-Social Sci- ence Framework, Model Curriculum for Human Rights, and It's Elementary (Elementary Grades Task Force Report) [12].

At this point we need to recognize and believe in the concept of "remedial ethics." If a kid doesn't learn how to speak, spell, write, add, or subtract at home, we expect schools to teach such subjects to him or her. If students don't learn english or mathematics in grade school, we expect these deficiencies to be made up in junior high and/or high school. If these academic areas are still unlearned sufficiently when going on to college, society expects higher education to get involved with remedial instruction in these basic subjects. This same remedial thinking and behaving should be applied to ethics. Ethics are as important as english and more important than mathematics. Sure ethics should be learned at home, but oftentimes they are not. When a void exists or when the wrong values have been instilled, it is the task of all levels of education (including higher education) to become involved in the remedial learning. If a child is undernourished and doesn't eat properly at home, primary and secondary schools provide such students with free lunches. Isn't mental matu- rity and spiritual development as important as physical growth? Society also provides free or reduced cost higher education, in the form of scholarships based upon economic need, to the underprivileged and disadvantaged. Ethical need and "ethically challenged" students are instructional opportunities and learning deficiencies and disabilities which should also direct higher education activities. Remedial ethics is needed and should become a routine part of both higher-education private instruction, and public-state funded higher education.

2.5. Organizational

Many organizations, both private and public, today have mission and/or vision statements which include ethics as part of behavioral expectations. In addition, codes of ethics or conduct (compliance) are also now common within institutions. Examples are everywhere, so discussion here will be brief. On a personal note, and as but one example, California State University, Chico


recently hired a new President who with a task force of appropriate personnel came up with a proposed "vision statement" for the university which was recently unanimously endorsed by the Academic (Faculty) Senate. The vision statement speaks of "moral development," "citizenship," "global connected- ness," "civility," "responsibility," and "core values" [ 13].

3. Micromorality

3.1. Accreditational

There are two organizations in the United States which accredit business schools and programs in colleges and universities. One is the American Assembly of Collegiate Schools of Business (AACSB), which was formed in 1919 and is located in St. Louis. The AACSB has 853 total members of which 305 are accredited (23 undergraduate only, 21 master's only, and 261 with both) (112 of the 305 also have some level of accounting accreditation). The second is the Association of Collegiate Business Schools and Programs (ACBSP), founded in 1988 and located in Overland Park, Kansas, a suburb of Kansas City. The ACBSP has 525 total members of which 127 are accredited (72 associate only, and 55 baccalaureate/graduate). There are approximately 2400 institutions of higher education that have business programs in the five traditional fields of business education - accounting, business administration, finance, management, and marketing. While economics is often taught within a school or college of business, and sometimes considered a sixth field, it also may be taught as part of the social sciences in a liberal arts setting. The 2400 institutions mentioned above may also have specialized areas of study such as human resources management, management information sys- tems, and public administration which are a part of a business academic unit and considered as business-related curricula. AACSB members are usually large and/or research oriented universities. ACBSP members are usually small and/or teaching oriented colleges. Accrediation is a process established to ensure public protection of and to instill public confidence in education. In the United States, accreditation is voluntarily sought by institutions and is conferred by nongovernmental bodies. It is of two types: institutional and specialized. Institutional accreditation involves an evaluation of an entire educational institution in relation to its mission, and it is provided by six regional accreditation associations and by several national accrediting associations which restrict their scope to particular kinds of institutions. In contrast, specialized or program accreditation involves the evaluation of particular units, departments, or schools within an educational institution with regard to effec- tiveness or preparing individuals for their chosen professions. The AACSB

WHY TEACH ETHICS? 1 49

and the ACBSP focus on business programs within colleges and universities which have already achieved institutional accreditation. AACSB and ACBSP have various standards for accreditation one of which is "curriculum" content. The importance of curricular subjects is revealed by their placement in the standards. Note the importance of ethics in the business program curricula standards cited below:

AACSB Curriculum Content Standard C. 1.1 Perspectives [14]: Undergraduate & MBA Ethical and Global Issues

ACBSP Curriculum Standards B. 1 .b. (3): Common Professional Component [15] Baccalaureate & Graduate Business Ethics

3.2. Professional

So far we have been mandated by ecumenicalism, global and local organizations, federal and state governments, plus business accreditation bodies to teach ethical issues in the classroom. Management professors are also told to do so by the main academic association to which management instructors belong, namely, the Academy of Management. The Academy of Manage- ment has a Code of Ethical Conduct and Credo. The "preamble" to this code states that the Academy of Management has five major responsibilities, one of which reads: "To all people with whom we live and work in the world community-sensitivity to other people, to diverse cultures, to the needs of the poor and disadvantaged, to ethical issues, and to newly emerging ethical dilemmas is required." Other parts of the document include phrases dealing with: "respect," "fairness," "dignity," "personal worth," "honesty," "community service," "integrity," and "global consciousness."

3.3. Managerial

Management practitioners also belong to associations which stress business ethics. The largest collection of practicing managers is the American Manage- ment Association (AMA). The AMA has official organizational statements of: "Mission" (Policy No. 100); "Disclosure" (Policy No. 101); "Ethics" (Pol- icy No. 102); and "Conflict of Interest" (Policy No. 103). The AMA Ethics policy speaks of having: "The highest standard of conduct so as to foster fair and honest relationships.., conducted in strict observance of both the letter


and the spirit of the law." Other key passages stress "diligence," "honesty," and "integrity" [17].

3.4. Departmental

Sometimes special departments, units, and/or personnel within organizations are set up to deal predominantly with ethical problems and dilemmas. Many organizations now have ombudspersons, compliance officers, and/or ethics officers to specifically deal with ethical issues [18]. Hundreds of centers and institutes have been established nationwide to respond to ethical causes [19]. For example, the Center for Applied and Professional Ethics (CAPE) was set up by CSU Chico in 1987 to assist in the identification and resolution of ethical questions across all professional disciplines. Specific organizational sub- units typically have official documents and unofficial procedures endorsing ethical activities. Within universities, college constitutions and department bylaws frequently cover such issues. Catalog copy and course descriptions also pertain to ethical issues at colleges and universities. For examples, catalog descriptions for two required College of Business core courses at CSU Chico indicating ethical training are indicated below:

Management 149 The Management of Organizations A survey of organizational design, organizational behavior, and management functions. Includes theoretical, ethical, environmental, and international con- siderations.

Management 161 Business Environments in a Global Context An investigation of the dynamic and changing cultural, social, political, and economic domestic and international business environments. Topics include cultural awareness; ethical reasoning and social responsibility; social institutions and social issues; technology; and ecology.

3.5. Individual

Management and other business professors, corporate employees, and everyone should be concerned with transmitting ethics to others for all of the reasons mentioned above. We are mandated and required to do so by transcendental (ecumenical), global, national, state, and local official governing entities. Professional and pragmatic associations to which we belong give the same message [20]. Our accreditation bodies and local employers like- wise stress ethics [21]. But the most critical factor should be an internal and personal passion to leave this world in better shape for future generations [22]. The biggest challenge is not the training and retraining of students


and workers, but the training and retraining of teachers and managers [23]. Professors need to become much less concerned with "how" they teach (ped- agogy and instructional context), and much more concerned about "what" they teach (philosophy and instructional content). Our concern needs to be for both macromorality and micromorality. We must individually and collectively think globally and act locally. Contrary to popular beliefs, teaching is both the oldest and the most rewarding profession. The teaching and education of our youth, especially in the area of values, morals, and ethics, is the most important job that we all have to do. This moral management article ends with two quotations. The first is from Theodore Roosevelt who said: "To educate a man in mind and not in morals is to educate a menace to society." The second quote is from Horace Mann, who is believed by some historians to be the best teacher ever: "I beseech you to treasure up in your hearts these my parting words: Be ashamed to die until you have won some victory for humanity."

References

1. Gomez-lbanez, D. (1994). Proceedings of The Fifth Annual National Conference on Ethics in America. Long Beach, CA: California State University Long Beach, University Extension Services.

2. Parliament of the World's Religions (1993). Towards A Global Ethic: An Initial Decla- ration. Chicago, IL: Council for a Parliament of the World's Religions.

3. United Nations (1993 [1948] ). Universal Declaration of Human Rights. New York, NY: United Nations, Department of Public Information.

4. Sikula Sr., A. (1992). Management in America: Crisis in Ethics. Bend, OR: Daniel Spencer Publishers.

5. World Business Academy (1994). Core Beliefs. Burlingame, CA: World Business Acade- my.

6. Torpey, W.G. (1990). Federal Executive Branch Ethics. Richmond, VA: Byrd Printing. 7. Solomon, R.C. (1994). The New Worm of Business: Ethics and Free Enterprise in the

Global Nineties. Lanham, MD: Rowman & Littlefield. 8. Walton, C.C. (1992). Corporate Encounters: Ethics, Law and the Business Environment.

Fort Worth, TX: Dryden Press. 9. Carroll, A.B. (1993). Business and Society: Ethics and Stakeholder Management, Second

Edition. Cincinnati, OH: South-Western Publishing. 10. U.S. Department of Education (1994). Moral Education and Character. Washington,

D.C.: Office of Educational Research and Improvement. 11. California State Board of Education (1991). Moral and Civic Education Handbook.

Sacramento, CA: Department of Education. 12. California State Board of Education (1992). It's Elementary: Elementary Grades Task

Force Report. Sacramento, CA: Department of Education. 13. Esteban, M,A. (I 994). President's Vision Statement. Chico, CA: California State Univer-

sity, Chico. 14. AACSB (1994-1995). Achieving Quality and Continuous Improvement Through Self-

Evaluation and Peer Review: Standards for Accreditation: Business Administration and Accounting. St. Louis, MO: American Assembly of Collegiate Schools of Business.


15. ACBSP (1992). Accreditation Standards: For Baccalaureate~Graduate Degree Institu- tions. Overland Park, KS: Association of Collegiate Business Schools and Programs.

16. Academy of Management (1994). Code of Ethical Conduct. Ada, OH: Academy of Management.

17. AMA (1944). Ethics. New York: NY: American Management Association, Policy No. 102.

18. Green, R.M. (1994). The Ethical Manager: A New Method for Business Ethics. New York, NY: Macmillan Publishing.

19. Badaracco, J.L. (1995). Business Ethics: Roles and Responsibilities. Burr Ridge, IL: Richard D. Irwin.

20. Wueste, D.E. (1994). Professional Ethics and Social Responsibility. Lanham, MD: Row- man & Littlefield.

21. Beabout, G.R. and D.L. Wennenmann (1994). Applied Professional Ethics. Lanham, MD: Rowman & Littlefield.

22. Hosmer, L.T. (1994). Moral Leadership in Business. Burr Ridge, IL: Richard D. Irwin. 23. Williams, O.F. and J.W. Houck (1992). A Virtuous Life in Business: Stories of Courage

and Integrity in the Corporate World. Lanham, MD: University Press of America. 24. Etzioni, A. (1993). The Spirit of Community. New York, NY: Crown Publishers. 25. Drucker, EE (1992). Management for The Future: The 1990s and Beyond. New York,

NY: Truman Talley/Dutton.

Documents

Why management professors (should) teach ethics in the classroom