Why teach ethics at BYU?
A survey of Marriott School Alumni
Compiled by
Paul C. Godfrey
Management Society Chapters/
Universities Visited
Management Society Chapters
Universities
• New York
• University of Missouri—
Kansas City
• Kansas City
• East Bay (Oakland)
• South Bay (San Jose)
• Chicago
• Portland State University
• University of Notre Dame
• Top 10 MBA Program content
review (in process)
Industries Represented
• Health care
• Technology Development
• Semiconductors
• Business Consulting
• Media (Content/ Advertising
• Investment Management
• Real Estate
• Engineering
• Professional Accounting (SEC
Regional)
• Architecture
• Legal (National and Regional)
• Energy Trading
• Retail
Firms Represented
• Acquila Energy
• Intel
• HCA
• Pepsico
• Hallmark
• Bank of America
• Westin Hotels
• Deutsche Bank
• General Electric
• ING
• Citigroup
• FMC
• Goldman Sachs
• Bombardier
• Southwestern Bell (SBC)
• Accenture
• Novations
• A few Entrepreneurs
• Insurance
Overall Findings: How important is Ethics?
• Large companies take ethics very seriously
–
–
–
–
Enron effect (SOX)
Elliott Spitzer effect
Big targets for special interests
Reputation effects (competitive advantage & risk management)
• Large companies have formal programs and policies
• Yearly training and signoffs (Intel, BofA, HCA, GE, FMC)
• Low or zero tolerance policies
• Trend is toward “ethics and compliance”
• Small companies serious, not as formal
How Important is Ethics?: Individual Level
•
BYU MBA Grad: “No one took ethics seriously, that was wrong; ethics is
every bit as important as finance, marketing.”
•
Ethics can be a key element of promotion decisions
– # 1 criteria for new managing partner at Acctg. Firm
– Many grads have gotten jobs because they could be trusted to do the “right
thing”
•
Alumni feel the “frog effect”
– “What is ‘industry standard’ and what is unethical?”
– Pressure escalates slowly and over long periods
•
Serving a mission in a foreign country does not prepare you for the ethical
business challenges in a foreign country
•
“As an individual, I’m worthless without ethics”
How Important is Ethics?: Intel
•
"Intel is a uniquely conscientious company. This comes from the top down. The
company takes all concerns and questions seriously and sets publicly measurable
goals regarding social and environmental issues. That's very rare.“--Julie Gorte,
Director of Social Research, Calvert Funds
• 2002 began “Business Practice Excellence” group
• Ethics a manifestation of “doing business with total integrity”—a
corporate value
• Ethics is the organizational counterpart of 6 s operational quality
programs.
• Yearly training in ethics and compliance
Strengths of BYU MBA (and other) Grads
• Standards, people who generally try to do the right thing—they have
good motives
• Our students are good at holding themselves accountable.
Weaknesses of BYU MBA (and other) Grads
•
BYU MBA’s are naïve and sanctimonious
•
They leave good money on the table out of fear
•
Very timid, false notion of humility
•
Lack experience making tough, “hot” calls (like firing)
•
Will tell people what they want to hear, not necessarily the real truth
•
Have little appreciation for power of diversity
•
Teach by moral club rather than example
•
Our grads don’t know how to translate their religious beliefs into business values—
they don’t use the power they have.
•
Tendency to be too trusting, not see potential ethical issues
What should you have when you leave??
10. Logical and critical thinking skills
9.
Better understanding of other perspectives, no religious lock on ethics
8.
As new entrants to an organization, you have no leverage, no standing, and no
knowledge of what is “common practice” and what is unethical
7.
Have them face real situations, like day-to-day mid-level manager cases and issues
6.
Help them see the slippery slope—many never do
5.
Teach them how to transmit their values to others
4.
The importance of collective ethical reasoning—developing a collaborative culture
such that no individual ever makes an ethically charged decision unilaterally.
3.
The importance of teaching students to “navigate the gray”—sophisticated reasoning
skills
2.
Teach them the international component and how to deal in very murky ethical
climates.
1.
Teach them to look at themselves, and understand themselves in a deep and
reflective way