Transcript Twenty-five Years of Business Ethics— How the Field is Still

By Dean C. Ludwig, Ph.D.
Chair and Professor of Business and Leadership Studies
Lourdes College, Sylvania, OH
2011 IACBE Annual Conference, Las Vegas
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“As we approach a quarter century of
including ethics education in the business
curriculum, it is worth pausing to reflect on
the origin and purpose of this endeavor and
to evaluate whether or not the effort has been
successful in achieving its intended
outcomes.”
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Prior to 1960
◦ A Century Long Decline in Moral Instruction
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After 1960
◦ An emerging interest in applied/professional ethics
◦ Fueled by ethical problems emerging in the
professions
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Medical technology, e.g., test-tube babies
Political scandals
Business fraud
Engineering catastrophes
Boundaries in Journalism
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1970’s
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The start of some reflection/action in the professional schools.
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Early work largely conducted by members of philosophy
departments, trained in moral philosophy, who developed ties to
counterparts in the professional schools.
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In business, this is fueled by concern over high profile cases of
business fraud.
Little to no formal integration into the business curriculum.
1980—Formation of the Society for Business Ethics
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Most members were trained in philosophy. These individuals set
much of the tone of the early work, developing courses, modules,
materials, and most of the texts.
Heavy emphasis on critical thinking about complex moral
problems.
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Business faculty begin to seriously discuss
the integration of ethics into the business
curriculum.
Experimentation with modules and courses
Virtually no required courses at any business
school until late in the decade
Turning Point—John Shad’s $30 million gift to
Harvard in 1987 to promote ethics education
in the Harvard Business School
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1990-International Association for Business and
Society established.
◦ Many members trained in business with acquired
knowledge of moral philosophy—heavier emphasis on
issues of corporate social responsibility.
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Proliferation of required courses/modules in
ethics in schools of business.
◦ Depends on schools ability to find a faculty with training
in both business and moral philosophy
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Gradual inclusion in accreditation standards
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The field has been focused on applied
ethics—the careful thinking about complex
moral issues/ethical dilemmas.
The implied learning outcome is the “ability
to reason about complex ethical issues that
they may face in their own professional lives”
Little emphasis on “right answers”
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This approach leaves students with the
impression that moral problems do not
normally have convincing solutions
◦ Prompts confusion
◦ Reinforces ethical relativism
◦ Most importantly, fails to improve standards of
behavior—this is the learning outcome that gave
voice to the field.
Knowledge
Skills
Desire
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The M.B.A. Oath
Leadership and Corporate Accountability
(LCA) at Harvard Business School
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As a business leader I recognize my role in
society.
◦ My purpose is to lead people and manage resources to
create value that no single individual can create alone.
◦ My decisions affect the well-being of individuals inside
and outside my enterprise, today and tomorrow.
◦ Therefore, I promise that:
◦ I will manage my enterprise with loyalty and care, and
will not advance my personal interests at the expense of
my enterprise or society.
◦ I will understand and uphold, in letter and spirit, the
laws and contracts governing my conduct and that of my
enterprise.
◦ I will refrain from corruption, unfair competition, or
business practices harmful to society.
◦ I will protect the human rights and dignity of all people
affected by my enterprise, and I will oppose
discrimination and exploitation.
◦ I will protect the right of future generations to advance
their standard of living and enjoy a healthy planet.
◦ I will report the performance and risks of my enterprise
accurately and honestly.
◦ I will invest in developing myself and others, helping the
management profession continue to advance and create
sustainable and inclusive prosperity.
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In exercising my professional duties
according to these principles, I recognize that
my behavior must set an example of integrity,
eliciting trust and esteem from those I serve.
I will remain accountable to my peers and to
society for my actions and for upholding
these standards.
This oath I make freely , and upon my honor.
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Is ethics education in business beginning to
move in a new direction?
Could IACBE play a leadership role in
fostering ethics education in business that is
more effectively influences
executive/managerial behavior of our
graduates?