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Can You Teach Ethics to MBAs?

Tags: MBA, Ethics, Business Ethics, Leadership, Management, Yale School of Management, Business School, Aspen Institute, Harvard Business School, Amanda Becker

In the spring of 2009, when Bernie Madoff’s massive scam still felt raw and shocking, a few members of Harvard B-School’s graduating class decided to take a stand. They would sign a kind of Hippocratic oath for MBAs, promising, among other things, to “act with utmost integrity and pursue my work in an ethical manner.” By graduation in June, slightly under half of their 886 classmates had joined them. To put the glass-half-empty spin on it, that means most of the students at Harvard B-school didn’t even grasp the basics in their ethics classes.

On the other hand, maybe it’s not that MBAs can’t learn ethics. Maybe it’s just that B-schools are very bad at teaching it.

Test Yourself: Would You Act Unethically on the Job?

MBA ethics classes tend to focus on training students to recognize what’s right and wrong. But Mary Gentile, a Babson College scholar with a specialty in ethics and diversity curricula, says the standard approach fails to address the real problem. In most real-life business situations, Gentile says, you already know what’s right. The hard part is figuring out how to act on that knowledge without jeopardizing your career. Often, it’s just easier to justify bending the rules.

In 2005, Gentile together with the Aspen Institute and the Yale School of Management began a project that would apply her research to a real curriculum. The courses she developed teach students to anticipate how they or their colleagues might justify unethical behavior, and practice reacting to different scenarios. “It is very [helpful] to be able to pre-script the responses you would make to frequently heard arguments,” says Gentile. Since August 2008, the number of business schools pilot-testing the program jumped from just over 30 to more than 80, including MIT and INSEAD, a global college with campuses near Paris and in Singapore, and research centers or offices in Abu Dhabi, the United States and Israel.

“A lot of people started this semester talking about how the easiest way to deal with an ethical situation was to avoid it,” says Jerry Gowen, an MBA student at Washington State University. “You can’t do that all of the time. Using this approach, you have a little more ammunition” to deal with an ethically questionable situation at work.

Gentile’s method doesn’t attempt to show you how to negotiate every such situation. Instead, the curriculum emphasizes practice: working through scenarios, brainstorming rationalizations for unethical behavior, and formulating counterarguments. “We’re not saying that this is easy or that it will always work,” says Gentile. “But if we spend more time practicing, it will come more naturally.”

Test Yourself: Would You Act Unethically on the Job?

 
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    1

    miyahira

    10/20/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    Ethical behavior is so very difficult to instill in a person. My thinking is that they either have it or they don't. I spent 24 great years working in a commerical bank, many of those as a senior lending officer, working with and mentoring junior loan officers. All were taught the rules, standards, processes and procedures in their training programs. And as is with almost any process or procedure, there exists a fair amount of wiggle room. And that's one of the places where unethical behavior can manifests itself in a banking environment. No matter how thorough the training, we always saw (after the fact unfortunately) a couple of very questionable deals happen each year.

    Unethical behavior manifests itself in so many different ways that it's impossible to write a rule book or standard practice manual to govern how people manage or behave. Ethical behavior is something that a person picks up as their grow and mature into adults. It's up to us as leaders and managers to recognize those who are reputable and conduct themselves accordingly.

    I've always found it rewarding to do business with those who are concerned with their conduct as well as the the conduct of those who work for them. No one takes advantage of anyone. Everything is above board.

    Years ago I was involved with negotiations with a Japanese company. And at the end of our negotiations, my Japan based client closed our deal by saying (in Japanese, of course) "please take care of me." Basically telling me that he was placing his trust in me and my company to keep his best interests in mind. Powerful stuff.

    I also rub shoulders with our state's lawyer discipline system. This is a profession that makes a big deal about professionalism and ethical behavior. Yet they still have a couple of bad apples that surface each year.

    Lawyers receive sanctions or get their licenses taken away from them for unethical or dishonest conduct. I would like to think that we, as business owners, can also reinforce the desirability of ethical behavior amongst our respective workforces by disciplining or terminating those who are unethical or dishonest.

    Can we teach ethic's to MBA's? I doubt it very much. However, schools can certainly decide whether an unethical student is deserving of an MBA.

  •  
    2

    Juffowup

    10/20/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    Oh spare me, whether a person's ethical or not doesn't depend on your business school.

    Speaking of ethics, did the A schools pay you off to write this one?

  •  
    3

    vicmanuja@...

    10/20/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    Dear Amanda

    Thanks for raising such a vital and challenging issue. It is obvious that just teaching alone has not improved the practice of ethical behaviour. I am not aware of the detail of the course on ethics, but have a feeling that only the principles are taught and not how to deal with such challenging situations. When a person has to make a decision, s/he is in the heat of the moment and so many issues crop up in her/his mind including the immediate effect on their career/family/relationships and many more that play a role. People need a hook to which they can safely attach their decisions to at least feel safe in their job.

    One of the techniques that I have used and shared in my management consulting/ change management effectively is first of unconditional respect including for the person who is asking to make such a decision (I am not excluding the person who is making this call on his/herself). The second that can be used as a hook is the company policy/vision/mission or the comapny values/stands etc. The person being asked to take certain unethical act can ask politely maintaining composure and respect "I don't understand. The company policy etc. is ... and I wonder about the consequences on the organisation and us later on if we do it this way. I am confused and shall we discuss it tomorrow?". By attaching the decision to the highest public document, and putting in time delay to let the consequences sink-in, people who want to practice ethics, can practice ethics effectively. I have found it very effective and have seen the stress dissolve.

    It cannot prevent those who want to take a short cut and gratify themselves immediately. However, they run the risk of being found out, may be lose sleep etc. and when found out shall pay the price.

    The truth is that we do get all kind of thoughts about actions that we can take including immediate gains, which is not really important. It is what we do after considering all the issues is what counts.

    I would be happy to hear feedback. Bless you all!

    Vic

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    4

    steveo@...

    10/21/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    At the University of Chicago it was made clear that we were all expected to hold ourselves to the highest ethical standards. We were going to be U of C grads and we were expected to act like it. In different classes it came out in various ways.

    As an example, in a Negotiating class we were told that it was not only bad business practice but also simply wrong to make any untruthful statement during the course of a negotiation.

    Juffowup, I have to disagree with you. People's patterns of behavior are linked closely to their culture, and different schools have different cultures. To say that it doesn't make any difference where you go is to say that culture does not matter when it comes to ethics. Or perhaps you believe the culture does not vary among institutions.

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    5

    BusinessManExtraordinaire

    10/21/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    I don't think ethics can be taught, rather, you must instill a sense of values in students. Every situation is different and it's impossible to teach people what should be done in every situation. Also it is one thing to give people a scenario and ask what they would do in that scenario but it's entirely different in real life. In life there are social pressures that simply can't be experienced through taking an exam or analyzing case studies.

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    6

    almcfarland

    10/22/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    Thought-provoking post and comments!

    One reason ethics training/instruction may be difficult is that there is no room for failure. We accept business plan risk. We accept sales people testing unorthodox routes to success. The sheer number (and complexity) of financial instruments available on the market indicates that we are willing to take risk in that arena.

    For those who lack a strong moral compass who can/will support mistakes along the way?

    http://pivotpointsolutions.wordpress.com

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    7

    invictus_anup

    11/19/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    Dear Vicmanuja ,
    I think this is a lrger topic and engulfs a whole lot of supporting factors .I am a banker like Miyahira ,and I hae seen those questionable deals (what she has mentioned in her paragraph). I would talk through my experience and observation . First once ,one has landed up without the ethics teachings how do we tackle them ? Second ,those who are yet to luanch themselves in the turf ,what can we do for them .
    Ethics is largely a charecteristic and largely shows a genetic inheritence ( thats the truth) ! Then is there no hope in it ?
    Lets take scenario of training :We train the beasts to tame and behave as we want . If a DOG , a Lion ,A Chimp ,a Horse an Elephnat can be trained ,so can human beings and with better results .
    Since Human beings possess extra intelligence and has their own brain to think beyond what has been taught ,the job becomes taugher,but not impossible.
    Businees schools should take more time and initiative to drill this word ETHICS inot their students .That can be done through live and to the context case consequence presentations . Interview with the unethicals (those who are already caught and are serving ).Through developing various management games which can run over months (on line mode) and allowing the students to realize by themselves as what is the end ,if one has chosen an unethical path. Unethical practices happen due to two major reasons .
    1.Due to unattentive and uninofrmed bosses supported by weak establishes process in an organisation. Most of the time people take advantage of lack of interdepratmental communication and lack of transperancy in existing process.
    2. Lack of remuneration schemes :
    a) Lack of remuneration as a whole :Employees take an unethical route for money .In India ,we have a classic case of unethical cops .Cops are incidentally paid less and no body cares about their standard of living.I dont disagree the fact that their is no limit of monetary desire, but then things can come down drastically if the requirements of employees are known by their bosses and the same is addressed . That can be done through easy finances and robust remunerative schemes for good performers .

    b) Lack of remuneration scheme for whistle blowers :I strongly feel that there is a need to formalise such remuneration scheme in all organisations which are vulnerable to ethical risks and encurrs loss/cost for the same. This would create an environment of alertness amongst peers . Even a person to whom a price has been offered for taking unethical route can blow whistle and prevent the same at the same time can get monitarily rewarded.
    Yes ethics can be taught to MBAs but with LOTS OF PATIENCE AND PAIN and through their the tenure of MBA program.

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    8

    Sandra Lorimer-Jonas

    11/20/09 | Report as spam

    RE: Can You Teach Ethics to MBAs?

    It is normal to want to place blame when dealing with unethical behavior. Everyone knows that being taught something once doesn't equal behavior modification. If it did, there would be no self-help market. Teaching ethics in business schools is important, but learning is a process. What compounds the problem of unethical behavior in businesses is that a company may have two set of rules: the spoken and the unspoken. With such a diverse workforce, companies need to be explicit about both their spoken and unspoken expectations of their employees. Assuming employees know what the company deems right or wrong is simply that, an assumption.

    www.springboardsconsulting.com

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