Themes in Business Ethics

Ethical Leadership

Ask any classroom of students if they have ever cheated in a class or seen someone cheat and not said anything. Usually, a minimum of 75% of the students hands go up on the air.  Why is this so?  Students need to understand the overwhelming influence of their peers.  As Linda Trevino has noted, it’s not the ‘bad apple’ which causes the problem, it’s the ‘bad barrel.’ She notes that we need both good apples and good barrels for ethical leadership to be the most effective.

The lack of ethical leadership, rewards and promotions for ethical behavior, and a lack of training and attention to developing a strong ethical culture can lead to corruption and the type of news stories we have seen so much of lately. Organizational culture is a much more significant influencer of what an employee will do than their own personal conviction. Leaders and managers in the organization must establish values and train employees to understand those values as they relate to operating within the organization and as a representative of that organization. Business schools should ensure that students are familiar with the formal programs and key legislation that support ethical conduct and with legislation. Particular features of formal ethics programs, such as appointment of a responsible senior executive and implementation of codes of conduct, training programs, reporting systems, and disciplinary systems, should be considered in business ethics education programs. (See “A Framework for Understanding Organizational Ethics” by O.C. Ferrell.)

Students are learning about ethical behaviors through the ethical culture observed within business programs. Business schools should demonstrate a commitment to ethics and values within their own organization. (See AACSB International’s Eligibility Procedures for accreditation.)