In this study, we examine the relationship between appeal to self-perceptions of moral identity, included in the teaching of ethics, and the strengthening of moral judgment among postgraduate business students. As appeal to moral identity emphasizes personal engagement in the appraisal of an ethically charged situation, it addresses critiques of abstract rule application and principle transfer leveled at traditional business ethics teaching. Eighty-one participants completed a series of reflective writing exercises throughout a twelve-week business ethics unit. Based on an instrument (...) completed at the beginning and end of the education process, our results indicate a positive shift in moral judgement intensity. We, therefore, recommend appeal to moral identity as a leverage strategy to be employed in business ethics education in order to strengthen students’ moral judgment. (shrink)

The Giving Voice to Values pedagogy and curriculum is described as an example of a powerful leverage point in the integration of business ethics and values-driven leadership across the business curriculum. GVV is post-decision-making in that it identifies an ethical course of action and asks practitioners to identify who are the parties involved and what’s at stake for them; what are the main arguments to be countered; and what levers that can be used to influence those who are in disagreement. (...) The internalization of GVV’s constructs allows faculty to comfortably raise and endorse ethics as part of the natural order of business decision-making because the stakes of doing so have been normalized. Methods for introducing and using GVV in undergraduate through MBA courses are given. An illustration is given for economics courses. (shrink)

Firms usually need to attract debt to form and grow, but increasing financial leverage also entails increased risks and costs for stakeholders, such as customers and employees. Accordingly, past research suggests that for common commercial firms (CCFs), which prioritize profits, higher leverage leads to lower sales growth and higher employment costs. However, Certified B Corporations (CBCs) distinguish themselves by having a credible prosocial mission and, therefore, might be better insulated against the adverse effects of higher leverage. Using a European multi-country (...) matched sample of 136 CBCs and 136 CCFs, we find that the negative relationship between leverage and sales growth and the positive relationship between leverage and employment costs are weaker for CBCs than CCFs. Taken together, due to their certified prosocial mission, CBCs enjoy an advantage in debt financing compared to CCFs. (shrink)

In view of the numerous accounting and corporate scandals associated with various forms of moral misconduct and the recent financial crisis, economics and business programs are often accused of actively contributing to the amoral decision making of their graduates. It is argued that theories and ideas taught at universities engender moral misbehavior among some managers, as these theories mainly focus on the primacy of profit-maximization and typically neglect the ethical and moral dimensions of decision making. To investigate this criticism, two (...) overlapping effects must be disentangled: the self-selection effect and the treatment effect. Drawing on the concept of moral judgment competence, we empirically examine this question with a sample of 1773 bachelor’s and 501 master’s students. Our results reveal that there is neither a self-selection nor a treatment effect for economics and business studies. Moreover, our results indicate that—regardless of the course of studies—university education in general does not seem to foster students’ moral development. (shrink)

This research shows how business students’ disciplinary specializations can affect their sense of personal responsibility by providing rationalizations for moral disengagement. It thereby conceptualizes business students’ disciplinary specializations as a key dimension of the business school responsibility learning environment. Students use four main rationalizations to displace responsibility variously away from their own disciplinary specializations, to claim responsibility as the prerogative of their specialization, and to shiftirresponsibility onto disciplinary out-groups. Yet despite their disciplinary identifications, students largely rationalized that their sense of (...) responsibility was an individual matter that was unlikely to be affected by contextual influences, and they attributedirresponsible behavior to incorrigible ‘bad apples.’ A theoretical model is offered which illustrates these dynamics by combining Bandura’s social cognitive theory with social identity theory. The research is based on secondary data, specifically focus-group interviews conducted with undergraduate students at a major Scandinavian business school in connection with the implementation of the UN Principles for Responsible Management Education (PRME) initiative. The implications for management education include the need to strengthen students’ ‘disciplinary reflexivity,’ and to explicitly address the tension between students’ disciplinary solidarities and their faith in their own individual moral infallibility. (shrink)

Our research addressed an increase of unethical practices in professional settings identified in the literature, and this increase coincides with a shift in U.S. culture from principle-based ethics to one trending toward moral relativism. We discovered many programs lack comprehensiveness to deal with the complexities of culture in graduate education. The purpose of this instrumental case study was to explore and develop a conceptual framework for a comprehensive teaching model targeting graduate-level educators, administrators, and educational boards across disciplines. Data were (...) collected over 13 years from a doctoral professional ethics course at a private, faith-based university in South Texas. Using a Design Based Research process following Reeves’ (2006) guidelines, we developed a multi-disciplinary graduate theoretical teaching model for ethics: Comprehensive Professional Ethics Teaching Model (CPET model), grounded in our data analysis and findings. Recommendations include implementing and testing the efficacy of the CPET model in subsequent studies. (shrink)