View of Ethics in Commerce Degrees â€” Why and How?

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Ethics in Commerce Degrees - Why and How?

C io rsta n S m a rk University o f West ern Sydne y

Australia A b stra ct

The concept o f ethics education in com m erce almostattracts as much cynicism as the term business ethics. Is there any place for ethics in a com m erce degree'? The short answer to this question from the authors' point o f view is

"yes", but one needs to think carefully about how to incorporate ethics into the com m erce curriculum. This paper examines two key issues facing com m erce educators. Firstly, we attempt to provide reasons why business ethics should be part o f the com m erce curriculum. Secondly, if ethics is to be part o f the curriculum, we provide some suggestions as to how it should be incorporated.*

E th ics in C o n im e r c c D egrees: W h y and how ?

It is interesting to observe the responses o f students w h e n the subject o f business ethics is raised. Ma n y react with a snigger or glib c om me n t whilst others appe a r stunned and confused. It is generally not long before students mut t er about smilarities with “ military intelligence" or s ome other oxy mo r on . ( Desj ar di ns and McCal l . 1996. 3). The idea o f business ethics is not a new concept. In fact s ome o f the ideas discussed in mode r n business ethics texts were discussed in the t imes o f Socrates and Aristotle. (Vel asquez. 1998. 133). Howeve r , the idea o f including business ethics as a topic or subject taught in a c o mm e r c e degree is a relatively new idea. (Ferrell and Fraedrich. 1994. 80). Fven as late as 1995. only 15 o f 44 universities offering business degrees in Australia offered business ethics subjects.

(Leung, 1998, 85).

On e o f the difficulties o f i ntroducing a Business f t h i c s subject in Australian Universities is a traditional, "i n n a t e ” view o f ethics. Until about the mi d-t went i et h century, ethics was generally seen as part o f o n e ' s upbringing, a va gue undefined concept associated with the idea o f religious belief; o f right and wrong; o f good and bad. (Ferrell and Fraedrich, 1994. 8). From an educational perspective, ethics was assi gned to the areas o f theol ogy and phi l osophy w here great mi nds had the time and oppor t uni t y to p onde r its meani ng. From a generalist perspective, the ethics o f business, until the mid-fifties, was centred on the legal r e qui r ement s o f the day or

’ The authors draw on both current business ethics literature and extensive experience in providing the various techniques available for incorporating ethics into the com m erce curricula. Student' survey responses are also included.

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2 Ethics in C o m m e rc e De gree s - W hy and How ?

s o m e nar ro wl y defi ned code o f practice specifically designed for a particular professi on or workpl ace. Acc or di ng to Bi shop (1992, 292) business ethics, as a distinct a ca d e mi c area o f study, did not find its roots until the 1 950’s,

‘Busi ne ss leaders o f the time r ecognised the i mpor t anc e o f a shared set o f values in the business c ommuni t y. These values wer e vi e we d as necessar y to the effective f unctioning o f a free-market e c o n o m y . ’

Bi shop (1992, 292) also points to other social forces (such as the civil rights m o v e m e n t and increased cynicism about those in positions o f authority in our society) h a vi ng further accent uat ed the need for business educat ors to include business ethics in their curriculum.

W hy Incorporate Ethics in a C om m erce C urriculum ?

A n u m b e r o f pertinent reasons for incorporating ethics in c o m m e r c e courses have been posited. S o me o f the mo r e c o m m o n t he me s are discussed in the f ol l owi ng p a r agr aphs a l ong with s ome o f the c o m m o n threats and danger s that arise w h e n not i ncorporat i ng ethics into the business curricula.

Firstly it is a c k n o w l e d g e d that, given the great diversity o f society, there is no uni versally ac cept ed appr oac h for resolving quest i ons o f ethics. It is t her efore seen as wi se to study ethics to ‘identify ethical issues and to r ecognise the appr oa ches avai l abl e to resolve t h e m ' (Ferrell and Fraedrich, 1994, 14). The study o f ethics helps peopl e to better understand and analyse their o wn current values and convictions. By st i mul at i ng reflection and debate in an open forum students learn to identify and dev e l o p their ethical ideals and appl y these to their w o r k envi r onment .

T h e second reason for studyi ng ethics is said to be that it helps pe opl e to better underst and the effect their decisions have on other people. (Ferrell and Fraedrich, 1994, 5). Gi ven the e ve r - gr owi ng size and import ance o f business o r ga ni sat i ons in mo d e r n society, it would seem to be vitally import ant to have the peopl e involved in such businesses being consci ous o f not onl y their cor porat e responsibilities but also the possible i mpact their actions have on society. ( Chr yssi de s and Kaler, 1993, 21-22).

Thirdly, several authors refer to the simple c once pt o f self-interest. Disastrous c o n s e qu e nc e s can f ollow if c o mp a n i e s are seen by the public to be unethical. (Ferrell a nd Fraedrich, 1994, 12; Grace and Cohe n , 1998, 25). There are a plethora o f e x a mp l e s that could be quoted o f adverse publicity generated by a public perception o f unethical business conduct. Such perceptions have led to serious censure from the public. T w o f amo u s e x a mp l e s o f this are the case o f Nestle Ltd ( B e a u c h a m p and Bowi e, 1997, 606) and the Exxon Val dez case ( Chr yssi des and Kaler, 1993. 23).

Cove r sel y, the benefits o f a c o n s u m e r perception o f high ethical standards can be seen

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in the success o f T h e Body Shop ( Chr yssi des and Kaler, 1993, 503). C r a g g (1997, 233) points to an increasing sent i me nt a mo ng st business leaders for the proposition that ‘ethical busi nesses are mor e profitable on the wh o l e than unethical busi nesses' . O n ce again, c o mp an ie s need gr adua t es w h o can identify and anal yse ethical difficulties, preferably before the c omp a n i e s pursue the c om p a n i e s pur sue any quest i onabl e or harmful courses o f action.

Ther e is also a high level o f m e d i a scrutiny o f and interest in ethical issues relating to business (Ferrell and Frae dr i ch,1994. 10). Mo r e c o m p a ni e s than ever are d e ve l opi ng ethical codes o f practice for their empl oyees. Thus ethical issues are mo r e likely to be debat ed from both within and outside the c o m p a n i e s that c o m m e r c e gr a duat e s c hoos e to wor k in than ever before. Fourthly, the m o v e t owa r ds professionalisation by m a n y discipline has been cited as a reason for incorporat i ng ethics into c o m m e r c e curricula. The increasing t ende nc y t owar ds, and desire for, the professionalisation o f mo s t c o mm e r c e positions se e ms to d e m a nd that ethical issues be a ddr esse d (Chr ys s i des and Kaler 1993. 22). The high de gree o f expertise required and the h eavy responsibilities associated with an y profession woul d seem to attest to the need for the inclusion o f ethics in any decision process. Professions such as law, social wo r k and medi ci ne have a strong e mp h a s i s on ethics, can a ny business or b u r ge o n i n g profession afford to do less ? (Grace and Cohe n, 1998, x).

T h e t wo accrediting bodies for a c count ant s in Australia, the Institute o f Char t er e d Ac c o u n t a n t s in Australia ( I C A A ) and the Australian Society o f Certified Practicing Ac c o u n t an t s ( AS C P A ) , have both recently paid increasing attention to the area o f ethics ( Leung, 1998, 86). Gr ace and Co h e n (1998, 121) s uggest that part o f t he professional b o d i e s ’ increased concer n with ethics is a decline in public perception o f a c c ou n t a n t s ’ ethics and integrity. The training, effort and sponsor shi p m o n e y put into ethics by these bodies suggest that ethics is not me r el y an issue in professionalisation, it is consi dered to be a far broade r issue.

H ow to Incorporate Ethics into Business C urricula ?

Busi ness ethics courses are b e c omi n g increasingly c o m m o n in Australia. If the trend in Australia mo v e s to match the trends for t ea chi ng o f business ethics in the United States o f A m e ri c a and Europe, the n u m b e r o f institutions offering business ethics subjects will cont i nue to increase ( Leung, 1998, 85). The aut hor s have been t ea chi ng business ethics at the University o f Western Sy d n e y - Ma c a r t hur ( U W S - Macar t hur ) for a n u m b e r o f years and in a n u mb e r o f different subjects as well as in a variey o f f ormats ( Smar k, 1995, 7). In deci di ng h ow to a ppr oach ethics in any c o m m e r c e cour se there are a n u mb e r o f dec isions to be ma d e and a variety o f choi ces available. The rest o f this paper ai ms to introduce the reader to s o me o f these deci si ons and possibilities. Ex a mp l e s will be dr awn from the inclusion o f ethics in the bache l or o f c o m m e r c e ( a ccount i ng) degree, but similar decisions woul d have to be m a de for a ny c o m m e r c e discipline.

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Issues to be A ddressed when Incorporating Ethics into a C om m erce C ourse.

On e o f the first questions to be addressed when i ncorporating ethics into the curricula is what format to use. Decisions about the mixture o f t heor y to practice and h o w muc h time can be set aside exclusively for ethical issues, in an al ready busy ti met abl e mu s t be deci ded at the outset. Quest i ons such as ' shoul d ethics be incorporated o f both ?' need to be determined. The aim is to blend ethics into the c our se structure as part o f its innate nature rather than maki ng it a pp e a r as an alien aspect o f the c o m m e r c e degree.

A n o t h e r issue is w hat sort o f presentation is appropriate to the students (in the case the a cc ount i ng students) - a largely theoretical approach: a largely practical approach; or s ome c ombi nat i on o f both ‘.) In deciding upon this issue, it is particularly important to r e m e m b e r that most c o m m e r c e students will bring little or no philosophical backgr ound with them as they enter the course. Bishop ( 1992. 292) differentiates the t wo basic approac hes thus:

' Re g a r dl e s s o f where taught, ethics courses tend either to be phi l osophy - or ma n a ge me nt - oriented. The phi l osophy-or iented approach tends either to be more rigorous in terms o f theory, logical f oundations and abstract concept ual i sat i ons o f business ethics problems. The ma n a g e ment - ori ent ed approach has focused on the ' practical aspects o f managerial dec i si on- maki ng and the concrete details o f the firms and industries being a na l ys ed' . (Paul. 1987 quoted by Bishop. 1992).

The third considerations this article will address is how broad a course in ethics should be presented ? Should the ethical issues presented all relate to the discipline being studied (in this case acc ount a ncy) or to the wi der ethical issues o f business ? Whi l e this article does not aspire to give the definitive a n sw e r to any o f these questions, the paper w ill at least attempt to address some o f the issues from the a u t h o r ' s vi ewpoi nt s and experience.

A typical account i ng degree is highly structured and restricted in t erms o f content. The bulk o f the subjects taught naturally centre around matters directly associated w ith a c c ount i ng and legal issues. In addition time is allocated for students to learn s ome o f the basic skills o f ec onomi c s and m a n a g e me nt leaving very little time and space for the more generic skills such as ethics. In ensuri ng that students are eligible to join one o f the professional account i ng bodies on graduation and ensur i ng that the uni ve rsi t y' s own r equirements are met, curricula tend to be c o me crowded.

Ti me is therefore a maj or issue when it c omes to i ncorporating ethics into the curricula. If there is only time for a small part o f a subject to addr ess ethical issues, then one o f the br i ef treatments o f ethics that t heauthors have dubbed the "ethics sound bites’' appr oaches may have to be adopted. On e o f these app r oa c h e s might also be taken if the a c ademi cs involved believe that dealing with the ethics o f

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particular a c c ount ing areas is best dealt with at the s a me time that students are learning a bout that particular area. 'Thus students ma y gain a better u n d e r s t a ndi ng o f the ethical implications o f a situation if the ethical t hi nki ng wer e linked with the topic bei ng studied. This intergrated approah may also alleviate one o f the difficulties cited for the study o f business ethics as a separate subject. That is that as a separate subject the learning pr ocess is often impaired due to the fact that the t hudent s fail to see the linkage bet ween ethics and practice. In addition the subject o f ethics is often offered as an elective and thus easily avoided by student unless it is included in individual subjects in s o me way. ( Leung, 1998, 85).

The Ethics “Sound B ite”.

T hr ee app r oa c h e s have been tried at University o f West ern Sydney- Ma c a r th u r ( U N S W- Ma c a rt l n i r ) whe r e by the subject matter o f ethics has included as part o f a broader, mor e c omme r ce - o r i e n t e d subject rather than as an independent busi ness ethics subject. The first appr oac h is topic specific. That is, the ethical issues raised relate directly to the topic being studied. The second appr oach is subject specific. In the later years o f the a c count i ng degree s o me subjects will have specific topics devot ed to ethical issues. Within these subjects the required t ext books chosen will often have a chapt e r specifically relating to the broader ethical issues o f the area o f study. Thus a whol e or part o f a lecture and tutorial could be spent on ethical issues. The third a pproa ch to the sthics "s ound bite" is a general case-based introduction, not necessarily specifically greared to the topic at hand, but using real cased and pr ovi di ng s o me ethical f r ame wo r ks for a n u mb er o f topics or issues relating to the course.

The First A pproach-T opic Specific.

T h e first appr oach is to related the ethical quest i ons consi dered to the specific topic at hand. Setting "ethical issues" or “ ethical d i l e mm a s " question for tutorial h o m e w o r k several times during the s emes t e r can follow this approach. Several first ye a r a c c ount i ng texts n o w havi ng small ethical cases or ethical d i l e mm a s at the end o f each chapter. Ex a mp l es o f account i ng texts with these quest i ons included are Hogget t and Ed wa r ds (1996). Gaffikin (1993) and Car ne gi e et al (1999). T h e ethics quest i ons generally related to the subject matter o f the chapt e r and thus have the benefit o f i mme di a c y and relevance. This topic specific appr oac h was used in the introductory a cc ount i ng A subject at IJWS - Ma car t hur in 1996. This subject is a first year, co mp u l s o r y subject with a large enr ol me nt o f bet ween six and eight hundr ed students.

T e a c hi n g ethics using this appr oach identified a n u m b e r o f benefits. Firstly it a l l owe d ethics to be seen as integral to the study o f subject in question rather than as a loosely integrated addition to the regular curriculum. Secondly, within their limited scope o f h a l f a page or less, the ethical cases posited in the texts highlighted the association b e t ween business and society. Several o f the questions acc ent uat ed the rel evance o f ethics to the particular discipline and level o f study involved. S o me o f the quest i ons

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6 Ethics in C o m m e rc e Degrees - W hy and How?

also a t t empt e d to give gui dance to the students in tackling ethical issues. For exa mpl e , Hogget t and E dwa r ds (1996, 1 10) introduced students to the idea o f various st akehol der s bei ng affected in different ways by a given ethical situation. This ap p r oa c h had the benefit o f not requiring the lecturer to set aside a lecture or a tutorial e xcl usi vel y to the study o f ethics. In a cr owd e d c urr iculum, this attribute should not be overl ooked.

T h e d i s advant ages o f using this approach exclusively are that the ethical quest i ons or d i l e m m a s are, by necessity, very short, rather artificial and that c o m m e r c e students generally lack the backgr ound in ethics to effectively appr oach and discuss ethics problems. U W S - Mac ar t hur students asked for their vi ews on these ethical quest i ons reported little ent husi asm for what they described as b r ie f and s o m e w h a t shallow exercises. Although the questions aided students in identifving potential ethical issues, their very brevity and topic - specific nature m a d e them inadequa t e for a wel l - r ounde d ethics education. There was no space to cOntextualise ethics and or the hermeneut i cal d e ve l opme nt o f ethics. N o r was there any time to deal with the mul t i t ude o f ethical outlooks available. Because the quest i ons and cases tended not to be real cases, but rather hypothetical scenarios written by a cademi cs , students generally did not identify with the characters involved. In short, this appr oa c h did not seem to e ngage students' ent husi asm or to give them a seful f r a me wo rk for the evaluation o f ethical issues. Wh e r e these topic specific quest i ons can be useful is to introduce students to the idea o f ethics and then reinforce these ideas later on in the degree.

T he Second A pproach - Subject Specific.

The s econd approach to the ethics sound bite is subject specific. A variety o f texts suitable for second and third year subjects devote an entire chapt er to ethics.

S o m e e xa mp l e s i nclude Z wa ss ( 1998) for Information Syst ems subjects; Pound et al ( 1997) for Audi t i ng subjects; Mer c ha nt (1998) for Ad v a n c e d M a n a g e m e n t Ac c o u n t in g subjects; and Henderson and Pierson (1998) for Ad v a n c e d Financial Ac c o u nt i n g subjects. Such chapters clearly identify and accentuate the ethical issues associated with the subject material as a whole, that is the ethical e mp h a s i s is subject wide, rather than topic specific as found in the introductory texts. This thus all ows for the o p por t uni t y to contextualise and discusses professional ethics in a mor e holistic manner. As an e xa mp l e o f this wi der t reat ment Henderson and Pierson ( 1998) in their text Issu es in F in a n c ia l A c c o u n tin g present both teleogical and deont ol ogi cal theories as b a c k g r ou n d di scussion o f ethics as well as presenting the applied perspective whe n di s cus s i ng the professional codes o f c onduct for accountants.

The chapt ers presented in this way should provide students with at least the r udi me n t a r y f r am e w o r k s with whi ch to aproach ethical issues. Gi ven that the discussi on o f one chapt er whoul d last a m a x i m u m o f one lecture and one tutorial, it is unlikely that such t r eat ment woul d adequa t el y equi p students to cope with an ethical

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d i l e mma , should t he y be c onfront ed with one in the workpl ace. N o r doe s it sufficiently addr ess the objectives for i ncorporating ethics into c o m m e r c e courses as di scussed earlier in this paper. The short ti me fr ame allocated to di s cus s i ng ethical issues a l l ows little t i me for the students to grasp their o wn u nder s t andi ng o f ethics led alone pr ovide a br oader f r a me wo r k for decision analysis at a later date. Th e r e is insufficient time to cultivate an unde r s t andi ng o f the me a n i n g o f ethics or integrate it with business practices. Agai n this form o f ethics study is useful but onl y in the form o f an introductory measure.

T he Third Approach - Non Subject Specific

The third appr oach to the "ethics sound bite” that has been tried is the none - subject specific approach. This appr oa ch has been used at both under gr adua t e and post - g r a d u a t e level at IJWS - Macarthur. As an e xampl e, within the Ma st e r s o f Busi ness Admi ni st ra t i on ( M B A ) program in 1997, the subject o f ethics wa s allocated to t wo hours o f M B A st udents' time as part o f the subject a c c ount i ng for Managers.

As ti me was at a p r emi um, it was decided to c over only t wo aspects o f ethical reasoning. Firstly, a very basic introduction to st akehol der analysis wa s presented f ol l owed by the distribution o f s ome (very brief) readings on the utilitarian and rights perspect i ves o f ethics. Secondly, a real ethics case wa s allocated to students to discuss in small groups. Th e y wer e to report back to the se mi n a r in forty-live mi nut e s with their per ceptions on the ma j or stakehol ders and an analysis based on either the utilitarian or rights perspective.

The case c hose n in 1997 was ' T h e New Y o r k Afri can Burial G r o u n d ' from Barton (1995, 41- 43) whi ch dealt with the di scover y o f African Ame r ic a n burials on a site whe r e the contruction o f an office t owe r was planned (on other occa s i ons we have also used ' The Ford Mot or C a r' case from Vel as quez [1992. 110-113]). With either o f these cases, there was a good deal o f interest and debat e a mo ng st students.

Both cases a r e ' r e al ' cases with the incidents described within ha vi ng really happened.

As a c o n s e qu e nc e students could empat hi s e with the people affected. Student s could also see that there were no trite or easily det e r mi nabl e "s ol ut i ons" and mos t definitely no definive ' ri ght ' answer. Sc ha upp and Lane (1992, 226) e mp h a s i se the import ance o f real cases in order to bring both credibility and relevance to the student s' learning experi ence. Cases, ac cor di ng to B e a u c h a m p and Bowi e ( 1997. 44), have the a dv a n t a g e o f present i ng students with c o mp l e x ci r c ums t a nc es (often akin to the ethical quest i ons that will confront students in their o wn life) whi c h require analysis and choice. This me t h o d encour ages students to d evel op their probl em solving and analytical skills with e mp h a si s being placed on the point that there is no one right or w r o n g answer. Instead a n u m b e r o f issues arise with vari ous scenario responses.

The use o f this t echni que also provided the students (albeit briefly) with some basic tools to deal with ethical issues. T h e y were able to try out the ethical per spectives di scussed earlier on the cases and to debate the vari ous pointts o f view .

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8 Ethics in C o m m e rc e De gree s - Why and 1 low?

On the whol e, students seemed to get far mor e out o f this introduction to ethics than with the other "s ound bite” appr oaches di scussed earlier. If nust be noted, h o we v e r that this appr oa ch requires s ome ti me (preferably t wo hours in a s emi nar ( m i n i m u m ) or possibly an hour o f lecture time plus an hour o f tutorial t i me) to be set aside for a discussi on o f each o f these ethical aspects. Whilst it is a c k no w l e d g e d that M B A students are a different cohort to first year under gr aduat e students a similar ap p r oa c h has wo r k e d well with unde r gr aduat e (although not first year) students.

Th e use o f the non-subj ect specific t ecnique has proved to have s o m e success with u nder gr aduat e students at U W S - Macarthur. Whilst both t echni ques begin with a general di scussion on ethics the under gr aduat e students were e nc our a ge d to talk a b o u t their personal views on ethics before getting into the mo r e traditional interpretations. Mor e ti me was taken with the unde r gr aduat e students than with the post - gr adua t e students - a t wo hour tutorial followed by a t wo hour tutorial.

Th e first step in using this t echnique was to identify at the begi nni ng o f the lecture wh a t students perceived ethics to mean. Students wer e given the opportunity to describe, in their o wn words, wha t ethics represented to them. The lecturer then used this br i ef discussion, as a means o f i ntroducing the topic. The lecturer pr ovided a b r ie f history o f the d ev e l o p me n t o f ethics from the western perspective, whi ch general l y aligned with the st udents' current background. Students wer e then introduced to such conc ept s as teleology, deontology, utilitarianism, and virtue ethics and given s o me insight into why and how we identify our ethical out l ook today. This al l owed the lecturer to identify the various tenets o f ethics and to appl y them, in a practical ma nner , to the discipline, or area o f study.

As a derivation o f this historical discussion students wer e able to identify the basic d o g m a o f ethics and discuss the correlation between social mor e s and business responsibilities. At this point, the lecturer contextualised social ethics in business practice. Illustrations we re given as to h o w peopl es' lives and the general wel l -bei ng o f the c o m m u n i t y wer e i mpacted upon by the w a y in whi ch business is t ransacted in the ma r ke t place (particularly the global market). Students at this point, hopefully, under st ood the rationale behind the introduction o f an ethical f r ame wo r k (eg. Co d e o f practice, code o f c onduct etc) to the business env ironment.

The third step in the process was for students to appl y their newl y found ethical tools to real situations. This was done in the t wo - ho u r tutorial. Students again we r e given a range o f real cases (for exampl e, cases a bout the Union Car bi de c h e mi c al plant disaster in 1884 or the Nestle issue in the early seventies). Students we r e then asked to pr ovide s o me hypothetical r e c o mme nd a ti o n s to the c o mp a n i e s concer ned. At this point, too, the students were given a broad, easily identifiable structure to w or k with so that they s ome identifiable tools with to eval uat e the situation. The students wer e then asked to identify the facts o f the case, and from these, to discern the ethical issues at hand. So me possible scenarios we r e suggest ed to

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a ddr ess these issues with students then asked to eveluate each scenario, noti ng the adv a n t ag e s and d i s adva nt a ge s to various parties under each. Finally, students were asked to r e c o m m e n d a scenario and with their r e c o m m e nd at io n they wer e asked to eval uat e the possible c on s e q u e n c e s o f their choice.

The a d vant age o f this appr oach is that students are not restricted to the use o f onl y one ethical perspect i ve and, in fact, often c omb i n e d s o m e deont ol ogi cal aspects such as duty with a utilitarian consideration o f conseque nc e. At the c oncl us i on o f the exercise, students wer e invited to discuss the situation and wh e t h e r or not t hey really believed that they wo u l d follow through with their r ec o mme n d a t i o n s . Mo s t students pr ovi ded high-principled responses to the cases discussed, but t he y did t end to preface their a n s we r s with wor ds to the effect that ' whi l st in theory we wo u l d do this, in practice this is j us t not practical or v i a b l e ’. It has been the aut hor s' perception over several years o f t e a chi ng ethics that students are not comf or t abl e with e xpr es s i ng their beliefs in the wo r kp l a c e for fear o f the repercussions. By hi ghlighting this ' d o ub l e s t a ndar ds ' problem it wa s often found that students would, after havi ng been involved in an ethical debate, better understand their ethical beliefs and be mo r e a wa r e o f any inconsistencies in their convictions.

This a ppr oach was adopted with our third year u nde r gr aduat e students w h o we r e generally in their final year o f study. As potential g r a dua nds it wa s i mportant to d e ve l op an a wa r en e s s o f the role ethics plays in their wor k e n vi r onment . This t e c hni que has been used across a n u m b e r o f third year subjects ove r the past five years. Whilst this t e chni que does not address the particular ethical issues related to the a c count i ng topic under direct study, it d o ws both chal l enge and interst students in e x a m i n i n g their bel i ef systems. It also enha nc e s st ude nt 's per ceptions o f how business decisions can affect the lives o f variety o f people. Th u s this t echni que meets t wo o f the criteria outlined as reasons for t ea chi ng business ethics outlined earlier in this paper. Usi ng this type o f t echnique to educate students in the wa ys o f ethics is t herefore beneficial. Particularly when " s ound bite" ethics t echni que s o f different t ypes are c oor di na t ed t hr oughout the degree. The aim o f this coordi nat i on is to ensure that all students are expos e d to both the topic and subject-specific “ sound bites"

whi ch can aid specific professionalism and act as an introduction to ethics. Student s should also be e xpos e d to at least one generalised “ sound bite” to chal l e nge their t hi nki ng and help t he m identify ethical issues.

T h u s a we l l - coor di nat ed program o f ethics “ s ound- bi t e s" can meet s o me o f the reasons for t e a chi ng business ethics. In a very cr owd e d cur r i cul um, this m a y be the best that can be ma na ge d. However , given the time constraints i nvolved in a series o f b r i e f “ sound bites" and the inability to d r a w on acc umul at ed k n o w l e d g e and a wi de variety o f readi ng and cases, such a t reat ment will a l ways be s o me wh at superficial.

T he full business ethics subject, a l l owi ng an a c c umul a t i on o f k n o w l e d g e and an e xp o s u r e to a variety o f material and t hough, must pr ovide a mo re c om p r e he n s i v e ethics coverage.

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10 Ethics in C o m m e rc e De gree s - Why and Mow?

The B usiness Ethics Subject

A cc o u r d i n g to Leung (1989, 85) there has been a ma r ke d gr owt h in the n u m b e r o f Australian universities offering business ethics subjects - with R M I T g o i n g so far as to m a ke its Ethical Issues in A c co u n t an c y subject c ompul s or y. Wh e n it wa s dec i ded to set up a subject devoted to Business ethics at U W S - Macarthur, t wo basic decisions had to be made. The first o f these wa s wh e t he r the subject should be limited to a cc ount i ng ethics or mor e generalised subject suitable for a range o f c o m m e r c e students. T h e second decision was wh e t h e r to adopt a theoreti cal / phi l osophi cal approach, an applied/practical appr oach or s o me c omb i n a t io n o f the two.

Th e adv a n t a g e o f tailoring the cour se to one group o f students ( account i ng students in particular) wo u l d be that students woul d find it directly r elevant to their future studies. As an e xa mpl e, account i ng students may go on to study ethics mo d u l es with the Institute o f Chart ered Account ant s or the Australian Society o f Certified Practising Account ant s. H o we ve r it was felt that the advant age o f doi ng this was o u t we i g h e d by three other considerations. The first o f these wa s that limiting the subject to, say, a c c ount i ng ethics woul d preclude a huge range o f f ascinating material.

G i v e n that interst is a prime det er mi nant o f learning and k no wl ed g e de ve l op me n t , this w o u l d not necessarily positive incentive to students. It was also f ound that w h e n del i veri ng small servings o f business ethics to students using the “ sound bite' ’ ap p r oa c h students interest wa s often captur ed using cases that wer e not directly related to ac c o u n t in g ethics.

T h e second di sadvant a ge o f limiting the subject to a c count i ng ethics was that it wo u l d very mu c h limit the breadth o f appeal o f the subject. It s e e me d a great s ha me to limit our potential intake o f students to account i ng maj ors whe n students in all areas o f business are expected to be awar e o f ethical issues. A related c onsideration wa s that a mi x o f students, s ome from accounting, s ome from e c on omi c s and finance, s o m e m a n a ge me n t , tourism and c omp u t i n g maj ors woul d give a far richer student mi x to the subject. It was felt that a mi x o f students from a variety o f diverse b a c k g r ou n d s w o u l d contribute a mor e eclectic view o f the subject.

T h e third di sadva nt a ge o f limiting the subject to a c count i ng ethics wa s the limited rel evance that this woul d provide. N o t all a c c ount i ng students go on to wor k in a c c o u n t i n g firms for the rest o f their careers. Even those that do go on to wor k i n g in a c c ount i ng firms will face ethical challenges not directly related to their specific j o b functions. T h e y will face challenges in their personal life, with clients, with their relationships at work, whi ch a nar r ow study o f acc ount i ng- bas ed ethics woul d not prepar e t hem for. It was thus decided that a broad business ethics rather than a narrow a c c o u n t in g ethics subject should be taught.

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The International Journal o f A c co u n tin g and B us iness Society 11

T h e s e cond decision to be m a d e wa s wh e t h e r to a d o p t a theoretical/

philosophi cal appr oa ch, an applied/practical appr oach or s o m e c o mb in a ti o n o f t he two. Previous w or k with “ sound bite” t reat ment s o f ethics had s h o wn the i mpor t ance o f gi vi ng students a f r a me wo r k to wo r k within to a ddr ess ethical questions. Au t h o r s in ethical t hi nki ng ( B e a u c h a m p & Bowi e, 1997, 44; S ch a up p an d Lane, 1992, 2 26) c o m b i n e d with the a u t h o r s ’ o w n e x per i ences have sugge st e d the a dv a nt a ge s o f the case st udy appr oa c h c o m b i n e d with a sound philosophical ba c kgr ound.

Several appropri at e resources are available to ethics e ducat or s based on a c o mb i n a t io n o f the theoretical and practical a pproaches. S o m e e xc el l ent e x a mp l e s i nclude Ve la sq u e z ( 1998) and S h a w & Barry (1998). A Fur t her difficulty for Aust ral i an e ducat or s is finding appropri at e Australian material in the face o f a large selection o f US material. Chr ys s i des & Kaler (1996, ix) lament a si mi l ar pr obl em for instructors from the United Ki n g d o m. Fortunately, there are n o w s o me Aust ral asi an materials bei ng p r oduc e d that coul d add relevance w h e n used as a s up p l e me n t a r y source. E x a mp l e s o f this are Gr ac e & Co h e n (1998) and Wo l dr in g (1996). For instructors wi s hi ng to bring still mor e local relevance to the cl assr oom, S c ha up p &

Lane ( 1992) provi des a useful a ppr oa c h for br i nging local or national n e w s p a p e r chi ppi ngs into the cur r i cul um as cases.

At the end o f the business ethics subject in 1995 and 1997, students wer e sur ve ye d for their r esponse s to the subject. An analysis o f these res pons es is s h o wn b e l o w in Tabl e 1. T h e inst rument used wa s the Student s Evaluation o f Educat i onal Qu al i t y ( S E E Q ) questionnaire. This inst r ument asked students to rate the busi ness ethics subject on a variety o f educational factors. T h e y were asked to rate each o f the f ol lowing factors bet ween 1 (strongly disagr ee) and 9 ( st rongly agree).

Table 1- Analysis of SEEQ Responses

1995 1997

Number of Valid Responses 40 42

Mean response (/9)

Learning / Value 1995 1997

Class was intellectually challenging / 6.9 6.7

stimulating

You learned something valuable 7.3 6.8

Your interest in the subject increased (over 6.8 6.5

the semester

You learned and understood the subject 7.0 7.2

material

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Ethics in C o m m e rc e Degrees - Why and i low?

B readth o f C overage ¹⁹⁹⁵ ¹⁹⁹⁷

C o n t r a s t e d im p l i c a t i o n s o f v a r io u s 7.3 7.6 t h e o r i e s

P re s e n t e d b a c k g r o u n d o f id e a s / 7.3 7.4 c o n c e p t s

P r e s e n t e d p o i n t s o f v i e w o t h e r th a n ow n 7.1 7.4 D i s c u s s e d c u r r e n t d e v e l o p m e n t in field 7.2 6.9

A s s ig n m e n t / R e ad in g s 1995 1997

R e q u i r e d r e a d i n g / te x ts w e r e v a l u a b l e 6.9 7.1

A s s i g n m e n t s c o n t r i b u t e d to 7.0 7.3

u n d e r s t a n d i n g

O v e r a l l S u b je c t r a ti n g 7.4 7.1

T h i s p o s s i t i v e r e s p o n s e fro m s tu d e n t s a n d th e g e n e r a l l y h ig h o f p r e s e n t a t i o n s , p r e p a r a t i o n a n d c l a s s d is c u s s i o n s s u g g e s t s th a t the b le n d o f t h e o r e t i c a l m a t e r i a l a n d a p p l i e d c a s e s tu d i e s w a s a p p r o p r i a t e th e level a n d in te r e s ts o f th e s tu d e n t s p a r t i c i p a t i n g in th e s u b je c t. S t u d e n t s s e e m e d to f in d th e full b u s i n e s s e t h i c s s u b je c t in t e r e s t i n g a n d v a l u a b l e ro le in ia w a y th a t th e e t h ic s " s o u n d b ite s " w e r e not. T h a t h a v i n g b e e n sa id, th e " s o u n d b i t e s " p la y a v a l u a b l e role in in t r o d u c i n g e t h i c s a n d p r o m p t i n g s tu d e n t s to th in k a b o u t e t h ic a l issues. T h is is v a l u a b l e in it s e l f e v e n i f it d o e s n o t m e e t all o f t h e r e a s o n s f o r t e a c h i n g b u s i n e s s e t h ic s w h i c h w e r e d i s c u s s e d in th e firs t s e c ti o n o f th is p ap e r.

C onclusion

T h e o b j e c t i v e o f th is p a p e r w a s to d i s c u s s th e role o f e t h i c s in c o m m e r c e c o u r s e s a n d to m a k e s o m e p r a c tic a l s u g g e s t i o n s on h o w to in c o r p o r a t e e t h i c s in to c o m m e r c e c o u r s e . A v a r i e t y o f p o s s i b iliti e s w e r e r a is e d fro m t h e t e a c h i n g e x p e r i e n c e o f th e a u t h o r s a n d th e b e n e f its a n d d i s a d v a n t a g e s o f u s i n g e a c h w e r e d i s c u s s e d .

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The International Journal o f A cco u n tin g and Business Society 13

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