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College courses in ethics: do they really make a

difference?

Spero C. Peppas
Mercer University, Atlanta, Georgia, USA
Barry A. Diskin
Florida State University, Tallahassee, Florida, USA

Keywords market and consumers may be unable to


Business education, Introduction judge for themselves the quality of a product
Higher education,
Business ethics, Ethics In recent years, as a result of public demand or the truthfulness of advertising. In
for higher ethical standards in business, addition, financial statements may not
Abstract there has been considerable interest in the always give a perfectly clear picture of the
Ethics in business is an issue that firm. As a result of these and for other
topic of teaching ethics to business students.
has long received considerable
The college-student population has become reasons, universities and professional
attention. As a result of
accreditation requirements, many used to seeing unethical behavior on the part organizations have attempted to address the
universities have attempted to of many role models, and academicians also issue of ethics through courses and/or
address this issue by making a
feel that students, and business students in training. This study examines how future
course in ethics a part of business business persons are affected by some of
programs. This paper examines particular, no longer show a disinclination
the values of current college toward cheating and academic dishonesty these attempts.
students studying business with (Kidwell, 2001). To address this problem and
regard to professional and
promote ethical behavior in business, many
business ethics. Attitudes of
students who have taken a course universities are requiring their students to Relevant literature
in ethics are compared with those take a course in ethics or are requiring that As one might expect, there exists
who have not. ethics be included as a part of business considerable research on the topic of ethics.
courses. In fact, the accrediting body for Following is a representative, rather than
schools of business AACSB-The International exhaustive, summary of some of the more
Association for Management Education relevant findings. For the purposes of this
(formerly The American Assembly of study, the review is divided into two sections:
Colleges and Schools of Business) (1993) one devoted to individual characteristics and
requires that its accredited institutions ethics and the other devoted to teaching and
address the issue of ethics in at least one of ethics.
these two methods.
This paper examines the attitudes of Individual characteristics and ethics
current university students regarding The majority of the existing research on
professional and business ethics. We wish to ethics is devoted to examining the effects of
gain an insight into the behaviors of future individual characteristics on attitudes
businesspeople once they complete their toward ethics (see Ford and Richardson,
university studies, enter the business world, 1994). This includes such attributes as
and are forced to make difficult decisions. We gender, age, employment experience and
compare the attitudes of business students industry, and nationality.
who have taken a course in ethics with those A number of studies sought to determine if
who have not, in terms of a series of value there was a relationship between gender and
statements. Despite an increase in attitudes toward ethics. Some of these studies
consumerism and corporate transparency (approximately 50 percent) suggested that
over the last decades, with a resultant women were more likely to exhibit ethical
increase in information available to behavior than are men. Interestingly, the
consumers and stakeholders, there remains other half did not show that men were more
ample opportunity for unethical behavior on ethical, but rather showed that there was no
the part of business people. For example, relationship. A study by Betz et al. (1989)
The International Journal of there is still imperfect knowledge in the examined the relationship between gender
Educational Management and unethical behavior. They found that
15/7 [2001] 347353 male students believed that career
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developing and building relationships or
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Spero C. Peppas and helping others. They also found that men favors for special treatment. Their study
Barry A. Diskin were at least twice as likely to engage in compared French and German managers and
College courses in ethics: do unfair practices as were women. Another examined whether ethical beliefs differed
they really make a difference?
study by Malinowski and Berger (1996) between the two groups. They discovered
The International Journal of
Educational Management supported these findings. When questioned that attitudes and behavior varied by
15/7 [2001] 347353 regarding marketing dilemmas, nationality of the manager as well as by
undergraduate women took a more ethical home-country ownership of the firm. In
stance than their male counterparts. studies comparing Australian, Canadian, and
Hoffman (1998) further developed the issue Hong Kong managers, Armstrong and
of gender and ethics by adding a situational Sweeney (1994) and Chan and Armstrong
dimension to the question of gender (1999) found that Australian managers had
influence. He discovered that the situational different ethical perspectives than the other
variable affected whether women were more two groups.
ethical than men. In his study, women Other studies have also shown that
managers of a large firm in the Southeast nationality influences ethics. For example,
were more ethical than their male colleagues Singhapakdi et al. (1994, 1995) showed that
with respect to unsafe products, but not with perceptions of ethical problems and
respect to product misrepresentation. professional and personal values were
In another study of gender influence, different for American (US) and Thai
Deshpande (1997) found that male managers marketers.
objected less to the notion of accepting favors Regional economic integration has given yet
for special treatment than did female another impetus to ethics research. A recent
managers. Age was also linked to ethics in study established a case for ``regional'' ethics.
that older managers were bothered more by Polonsky et al. (2001) showed differences in
certain categories of unethical behavior, e.g. attitudes of university students in northern
divulging of confidential information, than and southern EU countries with regard to
were younger managers. consumer ethics. Focusing on one southern EU
In a study delving further into gender and country, Peppas and Peppas (2000) examined
age among business professionals, Peterson ethical attitudes of Greek college students and
et al. (2001) found that for both males and found significant differences along several
females, ethical beliefs increased with age. demographic dimensions. Should further
Further, it was found that external factors, research support and broaden these findings,
such as the employee's family and the stage would be set for interesting debates
supervisor, had an impact on beliefs about regarding harmonization of standards within
ethics, especially among younger males. regional blocks.
In an empirical study using attitudes
toward classroom behaviors as a surrogate Teaching and ethics
for attitudes toward future business A review of the literature examining whether
behaviors, Allmon et al. (2000) found age to be college-level ethics courses, and/or courses
significant in that it affected student in which ethics is incorporated into course
attitudes toward classroom ethics, with older content, have an impact on attitudes toward
students indicating more ``ethical'' attitudes. ethics shows that the results of the studies
Cooper and Frank (1987) studied seven are mixed.
professional groups in the accounting and Luoma (1989) suggested that teaching
insurance field. Their study showed that students the rules and guidelines of a
when compared to other groups within these particular profession to achieve a
professions, CPAs and CLUs relied more certification or license, such as in
heavily on their respective codes of ethics to accounting, would not ensure that students
help solve ethical questions. Of particular would act more ethically. In Wynd and
importance were company-specific policies Mager's (1989) longitudinal study over a two-
emphasizing ethical conduct, encouraging and-a-half-year period, it was determined
employees to put ethics ahead of that a course in business and society
organizational goals, and facilitating produced no significant effect on students'
discussions of ethical issues between attitudes toward ethical decisions. They
superiors and employees. advanced that a single class focusing on
Another stream of research centers on ethical dilemmas in business was not enough
issues of nationality and ethics. For example, to effect changes in ethical perspectives. A
White and Rhodeback (1992) indicated that study by Davis and Welton (1991) produced
there is a significant relationship between similar results to those of Wynd and Mager.
unethical behavior and non-US citizenship. In research examining attitudinal differences
As did Deshpande (1997), Jackson and Artola toward ethics in business based on
(1997) studied attitudes toward accepting university class level (lower, upper, or
[ 348 ]
Spero C. Peppas and graduate), they found that courses did not In a study of auditing professors and ways
Barry A. Diskin influence ethical behavior. Instead, they of teaching ethics, Smith (1993a, b) found that
College courses in ethics: do
they really make a difference? contended that long-term exposure to a vast majority felt that ethics and personal
business circumstances was more effective in integrity should be included in the
The International Journal of
Educational Management bringing about attitude change than was curriculum. However, several authors have
15/7 [2001] 347353 formal training. Using self reporting, suggested that offering an ethics course is not
projective techniques, and different sufficient. Trevino and McCabe (1994)
scenarios, Duizend and McCann (1998) proposed that students gain the most through
examined the effects of teaching ethics in ``meta-learning'', learning not only from their
business and society courses projected onto classes but also by being part of an
small business owners and found the courses ``honorable'' business school community
had a positive impact on attitudes in only one where real ethical issues are discussed
scenario. Supporting the no/little effect openly and regularly. Owens (1998) suggested
findings, Peppas and Diskin (2000), in a more that, as many universities include within
recent study, found that taking an ethics their missions a desire to graduate students
course made no difference in marketing able to make ethically-informed decisions,
majors' attitudes toward a marketing code of business ethics should take on more
ethics. importance than simply being included in
Other research on the effects of teaching the curriculum as a single course. He
ethics shows different outcomes. Glenn (1992) suggested that business ethics should be the
conducted a four-year longitudinal study to ``conceptual glue holding together the
measure the effects of a business and society curriculum.'' On the other hand, however,
course on students' ethical judgments. He according to a survey by Hosmer (1999),
found that such a course did indeed cause many involved in teaching business ethics
some students to move in a more ``ethical'' indicated that neither teaching nor research
direction. Using an experimental approach, in this area was rewarded in terms of
Hiltebeitel and Jones (1992) studied promotion or pay raise. It was further found
accounting students in two universities. that few of the respondents received much
They found that the integration of ethics into support from their academic superiors,
accounting courses resulted in a greater colleagues, or students.
reliance on ethical standards by the students While business students, business
participating in the study. Similarly, Eynon professors, and accrediting bodies such as
et al. (1997), also concentrating their research AACSB believe that teaching ethics is
on accounting education, found that taking important, it is evident that the results of the
an ethics course significantly affected different studies have been contradictory. As
students' attitudes toward ethics. In yet a result, these authors believed that research
another study, Carlson and Burke (1998) to see if courses in ethics do indeed have an
found that college students' thinking evolved effect on ethical values of students enrolled at
from a rigid right and wrong conception of a large university in the southern USA would
ethics at the beginning of the semester to a add to the body of knowledge. The following
more flexible and enlightened approach at paragraphs are devoted to an examination of
this issue.
the end. In a study examining student
recognition of ethical issues, Gautschi and
Jones (1998) found that a course in business
ethics improved students' abilities in this Methodology
regard. The primary purpose of this study was to
When surveyed, business students feel that determine if university business students
teaching ethics is important. According to who had taken a course in ethics (defined as a
Shannon and Berl (1997), in a study at eight course with the word ``ethics'' in the title) had
universities across the USA, students significantly different attitudes toward
indicated their strong belief that the business ethics than those who had not. Of
discussion of ethics was worthwhile. interest was whether taking such a course
Students felt that the topic of ethics was had an effect on certain ethical values.
covered most fully in sales and sales
management courses and that a course in Sampling
business/marketing ethics should be a The non-probability sample used in this
requirement. Also based on survey findings, study consisted of students in their
Kerr and Smith (1995) found that accounting sophomore, junior, and senior years enrolled
students believed that a lack of ethics was during spring semester, 1998, in the College
damaging to their profession and that these of Business at a large public university in
students wanted ethical and moral guidance. Florida. The sample included students
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Spero C. Peppas and majoring in: accounting, general business, and those of students who had not, with
Barry A. Diskin finance, hospitality administration, respect to eight statements measuring
College courses in ethics: do certain ethical values. Responses of students
they really make a difference? insurance, international business,
management, management information who had taken an ethics course, as reflected
The International Journal of
Educational Management systems, marketing, and real estate. A total of by their agreement/ disagreement levels, are
15/7 [2001] 347353 341 usable responses were obtained. compared to those of students who had not, to
test for significant differences.
Measurement instrument . Doing what is ethically right is good
The survey instrument included a business in the long run. Both students
demographic information section and a who had taken a course in ethics and
section consisting of eight ethical value those who had not felt more strongly
statements. The part of the survey focusing about this value statement than they did
on ethics was derived from a survey used by about any other, with agreement levels of
Becker and Fritzsche (1987). Students were 1.67 and 1.53 respectively. The difference
asked to indicate their levels of agreement/ in the mean scores of the two groups was
disagreement, on a scale of 1 (agree) to 5 not significant.
(disagree), with the value statements. . Let the buyer beware. Students having
The demographic section gathered taken an ethics course agreed a bit less
information on major, class standing, sex, strongly with this statement than did
age, nationality, religious affiliation, work students without the course, with mean
experience, and whether respondents had scores of 2.88 and 2.74 respectively. The
taken a course in ethics. difference was not significant, however.
. Business people working in my field tend to
Methods of analysis ignore ethical considerations when doing
The demographic data were analyzed to business. While both groups disagreed
provide frequencies. For students who had somewhat with this statement, students
taken a course in ethics and for those who having taken an ethics course disagreed
had not, the data were analyzed to provide somewhat less strongly with a
mean scores reflecting students' attitudes disagreement level of 3.32 as opposed to
toward eight ethical value statements. Using 3.45 for other business students. The
ANOVA, the means of the two groups were difference of the means was not
tested for significant differences. significant.
. Whatever is good business is good ethics.
Both groups indicated that they did not
Results feel that good business equaled good
ethics, by indicating their disagreement at
Demographics the 3.91 and 3.84 levels. While those who
Of the 209 females and 132 males had taken an ethics course disagreed
participating in this study, nearly 30 percent somewhat more strongly with this
were majoring in accounting, 14.7 percent in statement, the small difference in the
finance, 12.9 percent in real estate, and 12 means of the two groups was not
percent in marketing. Insurance majors were significant.
the smallest category, representing only 0.9 . For managers to act in the interest of
percent of the sample. Most respondents were shareholders alone, and not also in the
in their junior and senior years of study (42.8 interest of employees and consumers, is
percent and 50.4 percent respectively). While unethical. Both students who had taken a
the ages of the respondents ranged from 18 to course in ethics, and those who had not
49, most were 20 to 22 years old (71.5 percent). agreed with this statement with mean
Almost all of the students in this survey were scores of 1.95 and 2.17 respectively. This is
US citizens (94.1 percent). In terms of an interesting finding, given that business
religious affiliation, 37.2 percent of the schools are stressing the importance of
students were Protestant, with 32.6 percent maximizing shareholder value. While the
having no religious affiliation. Nearly 25 difference in the mean scores of the two
percent were Catholic with the remainder groups was not significant, future
divided among several other denominations. researchers may wish to further examine
Almost all students had some work this issue.
experience (95.9 percent). Approximately 20 . Religious beliefs should play no role in
percent had taken a course in ethics. making business decisions. In a nation that
stresses separation of religion from most
Ethics matters, it is perhaps not surprising that
The following list reports the responses of both groups agreed with this statement.
students who had taken a course in ethics, Mean scores for those having taken an
[ 350 ]
Spero C. Peppas and ethics course and those who had not were firms, or of individuals within firms? If the
Barry A. Diskin 2.58 and 2.43 respectively. The difference focus is to be on the behaviors of individuals,
College courses in ethics: do one would question if business ethics are
they really make a difference? in the mean scores was not significant.
. As a result of stiffer competition today, different from personal ethics and how
The International Journal of
Educational Management many business people find themselves effectively any kind of ethics values can be
15/7 [2001] 347353 forced to resort to practices which are taught to individuals of university age.
considered shady, but which appear Future researchers may also wish to direct
necessary to survive. Both groups agreed their efforts toward the ``how'' of teaching
with this statement. Those having taken ethics (see, for example, Schaupp and Lane,
an ethics course indicated an agreement 1992; Smith, 1993a, b; Warren, 1995). While
level of 2.56 as opposed to 2.47 for those we, as did Wynd and Mager (1989) and Davis
who had not. The difference in the mean and Welton (1991), found that classes did not
scores was not significant. appear to affect students' ethics, future
. Business people exist for the sole purpose of researchers may wish to gather additional
creating and delivering value satisfaction empirical evidence in terms of the effects of
at a profit to themselves. Therefore, different ways of teaching ethics. Is a
business decisions should be made without separate course more effective or would the
regard to moral issues. Both groups inclusion of ethics in standard business
disagreed with this statement. Students courses have a greater positive impact? If a
having taken an ethics course indicated separate course, when in a student's program
slightly stronger disagreement, with a of study should this course be required? If
mean score of 4.24 as compared to 4.18 for ethics topics are included in standard
other business students. However, the courses, should they be included in some or
difference in means was not significant. all courses? What is the optimal exposure
level? Could there be too much emphasis on
ethics leading to desensitization? Would a
Conclusions theoretical or more practical approach work
best (see, for example, Oddo, 1997)? In all
We embarked on this study to examine cases, what kinds of teaching materials
college students' attitudes toward business should be used? Berger and Pratt (1998) found
ethics and to determine if college students that there was instructional value in using
who had taken a course in ethics and those films showing ethically questionable
who had not had significantly different behavior to teach ethics. As Davis and
attitudes regarding professional morality. Of Welton (1991) suggested that long-term
interest was whether taking a course in exposure to business circumstances was
ethics had an effect on ethical values. more consequential than formal training in
In terms of the ethical values examined in affecting attitudes toward ethics, perhaps an
this study, we found that there were no emphasis on case studies could help simulate
significant differences between students who this experience for students and bring about
had taken an ethics course and those who changes in students' ethical pre-dispositions.
had not. In light of AACSB's emphasis on Finally, when is the ideal time to measure
including ethics in the curriculum of to see if a course or courses have had an
business programs and a general concern effect on attitudes toward ethics? It has been
about a decline in business ethics, we feel established that the effects of commercial
that this is a most interesting finding that advertising may not peak until some time
begs for further research in an attempt to after exposure to the ad. Perhaps the full
definitively answer a number of questions. effects of the classroom experience do not
More specifically, while some authors have take hold until students have spent time in
focused on the ``who'' issue, i.e. which their respective career positions. While
professors are best qualified to teach ethics many college students work part- or full-time,
(see, for example, Klein, 1998; Oddo, 1997), most are probably not in decision-making
further research is needed in this area. positions where they would be faced with
Should ``ethicists'' teach courses in ethics or ethical dilemmas. It would thus prove useful
should business professors teach such for future researchers to focus more on the
courses? While most business faculty have attitudes of professionals in different
not been trained to teach such courses, they business fields to see if differences exist and
may well be in better positions to know the to determine if, as a result of time in the field,
kinds of ethical dilemmas facing college attitudes of professionals who had taken a
graduates in today's business environment. course in college ethics are different from
Also related to this train of thought is the those who had not.
``what'' issue. Should the focus be on the Clearly, while the study at hand found that
conduct of groups of businesses, of specific taking a course in ethics did not significantly
[ 351 ]
Spero C. Peppas and affect student attitudes, despite the existing universities and profession'', Journal of
Barry A. Diskin research in the field, there are many Business Ethics, Vol. 16 No. 12/13,
College courses in ethics: do unanswered questions in the teaching ethics pp. 1297-1309.
they really make a difference?
equation. It is hoped that this study will fuel Ford, R.C. and Richardson, W.D. (1994), ``Ethical
The International Journal of decision making: a review of the empirical
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