Annual Report 2007–08

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					                                 David Berg Center for
                                 Ethics and Leadership




Annual Report
David Berg Center for Ethics and Leadership



2007–08
                     Our Mission
                     The mission of the David Berg Center                      knowledge through cutting-edge research,
                     for Ethics and Leadership is to add                       experience-based education, and collab-
                     value to organizations through ethical                    orative community impact. Our dedication
                     leadership. Our commitment is to the                      to ethical leadership fits perfectly within
                     interdependence of ethics and leadership                  the University of Pittsburgh’s position as
                     as essential for sustaining the overall                   a leader in education, pioneer in research,
                     effectiveness of business and society.                    and partner in regional development.
                     Our goal is to create and disseminate




                                                    Experience-                 Cutting-
                                                       based                      edge
                                                     Education                  Research


                                                                 Collaborative
                                                                  Community
                                                                    Impact




                                                     Adding Value to Organizations
                                                      through Ethical Leadership



                     Table of Contents
                     Director’s Message ........................................................................................ 1

                     Adding Value through Experience-based Education ........................................... 2

                     Adding Value through Cutting-edge Research ................................................... 5

                     Adding Value through Collaborative Community Impact .................................... 8

                     About David Berg .......................................................................................... 11
On the cover:
CPLE IV students     Berg Center Faculty, Staff, and Advisory Committee ...................................... 12
gather to kick off
the fall term and    Dean’s Message ........................................................................................... 13
attend CPLE
Leadership Day.
Director’s Message
It is my pleasure and great honor to           research, experience-based education,
provide the director’s report on behalf        and collaborative community impact.
of the David Berg Center for Ethics and        While we celebrate many accomplish-
Leadership. It has been a busy year for        ments this year, we look forward to future
the center and its students, staff, faculty,   opportunities as well as challenges.
and supporters. We offered congratula-         As we read the daily headlines, we under-
tions to the graduating Class of 2008,         stand that while the Berg Center has
which included the 15 students who             much to celebrate, there is still significant
constituted Class II of our innovative         work ahead of us.
Certificate Program in Leadership and
Ethics (CPLE). We also welcomed the            Within a dynamic, technology-driven, and
largest incoming class of CPLE students,       global business environment, the need for
who will be joining us in the fall term to     ethical leadership is ever more necessary
begin their intensive studies in ethics and    and even more complex. As our response
leadership. We developed exciting partner-     to this challenging environment, we will
ships across the campus with the Office        continue to strengthen our existing strate-                        1
of Residence Life in launching a new           gic partnerships with organizations such
Leadership and Ethics Business Research        as the Pittsburgh chapter of the Society
Living Learning Community, and across          of Financial Services Professionals to          We have worked
the country with Microsoft Corp. as we         help promote business ethics within our         diligently and
                                               region. We look forward to the eighth
cosponsored Pennsylvania’s first DigiGirlz
                                               annual Pittsburgh Business Ethics Awards
                                                                                               energetically
program, which focused on safety and
ethics in technology for high school girls     and our commitment to disseminate the           to add value
in Pittsburgh.                                 stories of leadership companies that are
                                               ethical role models within their industries.
                                                                                               through cutting-
We also witnessed the transition               We also will cultivate new relationships        edge research,
of the center’s former coordinator, Jillian    as we collaborate across the Pitt cam-          experience-based
Barnett, and would like to express our         pus with other units, departments, and
appreciation for her hard work and efforts.    centers in the Ethics Across the Campus         education, and
We welcome Cathy Vargo as the new              initiative. Lastly, we will respond through     collaborative
coordinator. Other new faces have              an expanded portfolio of experience-
joined us, including Melissa Walawender        based educational opportunities that help
                                                                                               community
as administrative assistant, Dr. R.            to prepare undergraduate, graduate, and         impact.
Venkatesh as the undergraduate research        executive-level students to be ethical
coordinator, and Professor Jay Sukits          leaders of the present and in the future.
as the coordinator of the CPLE socially
responsible investment project. We wish        We take this time to look back over the
to express our gratitude to Dr. Bradley        past year. We also take this time to
Agle, who completed his term as the            look forward to the years ahead. Adding
center’s first director and who helped to      value to organizations through ethical
shape the mission, goals, and objectives       leadership requires innovative knowledge,
of this organization in a way that will have   meaningful collaborations, and a strong
a lasting impact on our students and our       entrepreneurial spirit. We look forward
corporate partners. It’s been a busy year!     to this work and welcome each of you
                                               to partner with us on the journey that
Within this annual report, we highlight        lies ahead.
some of the accomplishments of our
students, our faculty, and our staff, who      Sincerely,
work together as we seek to enhance
organizations through ethical leadership.
We have worked diligently and ener-
getically to add value through cutting-edge    Audrey Murrell
                                               Director
                                   Adding Value through
                                   Experience-based Education
                                                    Two CPLE Seniors               Erin Scheihing is finishing an account-
                                                    Nominated for                  ing major, CPLE, and an American Sign
                                                    CBA Alumni                     Language studies certificate. Additionally,
                                                    Leadership Award               she coordinates volunteer activities as
                                                                                   the vice president of community service
                                                    Two Certificate Program
                                                                                   for Beta Alpha Psi, for which she also
                                                    in Leadership and Ethics
                                                                                   serves as an accounting tutor. Scheihing
                                                    (CPLE) students have
                                                                                   has completed three undergraduate
                                                    been nominated for
                                                                                   internships and already has accepted
                                                    a College of Business
                                                                                   full-time employment after graduation with
                                                    Administration (CBA)
                                                                                   Deloitte. She has found her experience in
                                                    Alumni Leadership Award.
                                                                                   CPLE to be particularly valuable and says,
                                                     Jeff Kaplan is finishing a    “The learning and discussion that has
                                                     dual major in accounting      come out of our CPLE group is enhanced,
                                                     and finance, a minor in       because we know each other well. It’s
    Alumni Leadership Award
2                                  economics, and CPLE. He is president            interesting because we all have strong
    nominee Jeff Kaplan
    with his mentor Michael        of the Lambda chapter of Delta Sigma            voices, so we’re essentially learning how
    Romano, senior vice            Pi International Business Fraternity and        to lead within a group of leaders.”
    president of Highmark, Inc.,   has been a team leader for BUS 0001,
    at the CPLE graduation
                                   or Business One, the required freshman          Sukits Leads Socially Responsible
    recognition breakfast                                                          Investment Project
                                   seminar for CBA students. Team leader
                                   was a role in which Kaplan felt compelled       A small group of CPLE students, repre-
                                   to “pay it forward,” as his team leader         senting each of the current CPLE classes,
                                   played an instrumental role in guiding him      is participating in an ongoing project
                                   when he was a freshman. After complet-          designed to introduce them to the art and
                                   ing several internships, including one with     discipline of managing a securities portfo-
                                   PricewaterhouseCoopers (PwC), Kaplan            lio within socially responsible investment
                                   accepted a position in Philadelphia, Pa.,       parameters. Led by Assistant Professor
                                   with PwC’s advisory practice. He looks          Jay Sukits, the group currently is in the
                                   forward to the day when he can reach            first phase of the project, which is to
                                   out as an alumnus to help CBA students          research and write an investment policy
                                   who are seeking employment in the               statement that outlines risk tolerance,
                                   Philadelphia area.                              investment objectives, asset allocation,


                                     Profile of CBA Alum Jamie Ennis

                                     In April 2007, Jamie Ennis was honored among her graduating peers with the CPLE
                                     Excellence in Leadership Award. As an undergraduate, Ennis completed a major in
                                     marketing, a minor in economics, a concentration in accounting, and CPLE. She stud-
                                     ied abroad in three different countries and completed three internships while also
                                     taking on numerous leadership roles within student organizations and being active in
                                     community service. Ennis’ efforts paid off. She now is applying her experience in mul-
                                     titasking and handling a heavy workload to her current position with GlaxoSmithKline
                                     (GSK) as a retail access representative. In this role, she conducts retail store calls
                                     for a territory of 52 stores, directs subgroup headquarter calls once every quarter to
                                     drive volume of GSK products, and manages cross-functional and third-party relation-
                                     ships to ensure that business objectives and profit goals are met.

                                     Reflecting on her CPLE experience, Ennis says, “The CPLE program offered numerous
                                     leadership opportunities that allowed for my self-confidence and ‘outside-of-the-box’
                                     thinking to develop. Because of this experience, I understand and am more aware of
                                     my strengths and what I can offer in leadership positions.”
securities selection criteria, and portfolio
performance measures. During the next
phase of the project, the students will
review the universe of securities that fit
the established portfolio parameters.
Using analytical applications and an
explicit selection process, they will then
select securities for inclusion in the port-
folio. Ultimately, the students will manage
the portfolio by monitoring performance
and making warranted revisions within the
stated objectives.

Fifth Annual MBA Case Competition              CPLE Council Formed                              The winning Multi-cultural
                                                                                                Learning Team and Dean
This year, 22 Multi-cultural Learning          Several students from each CPLE class            John T. Delaney at the MBA
Teams (MLTs) of MBA students assessed          have volunteered to represent their fel-         Ethics Case Competition      3
a real-world ethical dilemma previously        low students on the newly formed CPLE
faced by Shell Oil Co. and presented           Council. The primary mission of the council
their findings to local and national ethics    is to raise the visibility of CPLE throughout
experts in the school’s fifth annual MBA       the CBA population. Council members also
Ethics Case Competition.                       agreed on the goal to build a stronger rap-
                                               port between the CPLE classes, which they
Judges who assessed the students’              feel will improve the student experience.
presentations included Perry Minnis
and Marilyn Backus from Alcoa, Allen           To that end, the council held its first          Welcome,
Crittenden from NOVA Chemicals, Dan            event—a picnic—in April. Members                 CPLE Class V!
Baker from U.S. Steel Corp., Betsy             of all four CPLE classes enjoyed some
                                                                                                This spring term, 30
Donnelly from Aetna, David Greenfield          late-afternoon sunshine, refreshments,
                                                                                                undergraduate students
from Kennametal, Stephen Kifer                 pickup games, and an opportunity to get to
                                                                                                were admitted into the
from Koppers, Eugene Maloney from              know fellow CPLE students. The students
                                                                                                fifth class of CPLE.
Federated Investors, Michelle Manning          extended a special welcome to the incom-
                                                                                                The number of students
from PNC Bank Corp., Jack Radke from           ing CPLE Class V and honored the seniors
                                                                                                applying for the program
UnitedHealth Group, Richard Roda from          with small gifts. When the council mem-
                                                                                                was significantly higher
Mine Safety Appliances (MSA) Co., and          bers return in the fall, they plan to organize
                                                                                                this year than in
Michael Romano from Highmark. Joining          several community service events, includ-
                                                                                                previous years.
the corporate judges were faculty judges       ing a joint activity with the MBA Net Impact
Jerry Zoffer, Ray Jones, Marick Masters,       chapter that focuses on sustainability.          CPLE V Class Profile
Jocelyn Kauffunger, Carolyn Kerr, and
Sam Calian.                                    CPLE Communication Academy                       Male            12 (40%)

                                               Planning is under way for the CPLE               Female          18 (60%)
After two rounds of competition, team
members David Brown, Saahil Goel, Bryan        Communication Academy. Next year, CPLE           Average GPA         3.39
Josephs, Joriaki Obata, Varangkhana            students will have an additional resource        Breakdown of CBA Majors
Sintharapantorn, and Gurpreet Ubhi             to help them develop key competencies
                                               such as communication skills, conflict             Accounting           11
emerged as the first-place winners.
Gretchen Haggerty, executive vice              management skills, and business acumen.            Finance               5
president and chief financial officer at       Upon entering CPLE during sophomore
                                                                                                  Management            5
U.S. Steel Corp., provided the luncheon        year, each student will undergo a video-
                                               taped baseline assessment of his or her            Marketing             4
keynote speech and spoke about U.S.
Steel’s long-standing practices of promot-     key competencies. On the basis of that             Dual majors           4
ing ethical behavior, including the Gary       assessment, the student and academy
                                               coaches will formulate an individualized           Undeclared            1
Principles that have guided its employees
since the early 1900s.                         development plan to be implemented
                                               during the sophomore and junior years.
                                               Improvements in these competencies
                                      Adding Value through
                                      Experience-based Education continued
                                                                                                            Karris Jackson,
    Organizations and                                                                                       executive director
    Positions Served by                                                                                     of Urban Youth
    CPLE Students                                                                                           Action, Inc., with
                                                                                                            graduating CPLE
    Adopt-a-Block                                                                                           student Adebanke
    African American Chamber                                                                                Owoeye, Audrey
      of Commerce                                                                                           Murrell, and Ray
    American Red Cross                                                                                      Jones at the
    Arrival Survival                                                                                        CPLE graduation
    Association for Retarded
      Citizens (ARC)
    Boys & Girls Club
    Central Blood Bank of
      Pittsburgh
    Collegiate YMCA
    Cray Youth and Family
      Services, Inc.
4   Deloitte LLP. Alternative
      Spring Break in Biloxi, Miss.
    Earth Day                         will be measured through a follow-up       Matthew Poljak
    East Allegheny School District    video assessment during the student’s      Career and Leadership Development
      Soccer Coach                    senior year. William Neff and Carolyn        Center Student Education and
    Family House McKee                Kerr, CBA faculty members, will serve as     Leadership Specialist
    FEFC Hospitality
                                      Communication Academy coaches.
    Girl Scouts of America                                                       Erin Scheihing
    Greater Pittsburgh Literacy
      Council                         Class of 2008 CPLE Students                2008 CBA Alumni Leadership
    Field Hockey Coach                Receive High Honors                          Award Nominee
    Habitat for Humanity                                                         Beta Alpha Psi Atlantic Coast
    High School Track Coach           The following CPLE students are the          Regional Best Practice Competition,
    Hillman Cancer Center             recipients of special awards as part of      Second Place
    The Hunger Project                the graduating Class of 2008.
    IMPACT Soccer
                                                                                 Beta Gamma Sigma National
    International Health Service                                                   Honor Society
                                      Akilah Huguley
      Honduras Translator for
                                      Beta Gamma Sigma National
      Volunteer Medical Mission                                                  CPLE Student Akilah Huguley
    Junior Achievement at Career        Honor Society
                                                                                 Gives Graduation Address
      Connections High School         Roberto Clemente Minority Business
    Lutheran Church ESL Program         Association Most Dedicated Member        The recognition ceremony for the CBA
    Marshall-Shadeland                                                           Class of 2008 was held in Heinz Hall in
      Community Development           Ryan Heichel                               front of a capacity audience of gradu-
      Corp.                           Beta Gamma Sigma National
    Mission Acceptance                                                           ates, faculty, family, alumni, and friends.
    Pitt Project Oakland
                                        Honor Society                            Graduating senior Akilah Huguley (CPLE
    Produce to People                                                            Class II) delivered an address as part
    Project Bundle-Up                 Laura Hutchison
                                                                                 of the student response during the
    Project Malawi 10K                President’s Youth Service Award
                                                                                 ceremony. Huguley recalled some of the
    Relay for Life
    Residence on Fifth                Jeff Kaplan                                exciting and challenging moments that
    Run to Read for Millvale          2008 CBA Alumni Leadership                 the students of the Class of 2008 have
      Library Project                   Award Nominee                            shared together. She reflected on the
    Seeds of Hope Soup Kitchen                                                   exams, internships, projects, and fun and
    Student Volunteer Outreach
                                      Beta Gamma Sigma National
                                        Honor Society                            the ways in which CBA has helped prepare
    Susan G. Komen Breast
      Cancer Foundation               Beta Alpha Psi                             her for her next step as a retail manage-
    TOMS Shoes                        Freshman Team Leader                       ment program trainee for Gap Inc.
    Toys for Tots
    United Methodist Church                                                      Not only did Huguley graduate with a
    UPMC Escort Service                                                          double major in finance and marketing,
    Urban Youth Action, Inc.                                                     but, along with completing CPLE, she
    VA Pittsburgh Healthcare
      System
                                                                                 also received a Certificate in International
    Vacation Bible School                                                        Business to complement her minor in
    Vital Bridges Food Pantry                                                    French (language studies).
Adding Value through
Cutting-edge Research
Pitt Undergraduates to Join Business          One cultural difference Vojtko found
Research Living Learning Community            was that Serbian and Slovakian societies
                                              place a higher value on family life than
The Berg Center, in cooperation with the
                                              on career success, while in the United
Office of Residence Life, has launched
                                              States, the reverse often is true. This
the new Leadership and Ethics Business
                                              cultural difference can have the potential
Research Living Learning Community.
                                              to create misunderstandings about work
Located in Panther Hall on the Oakland
                                              performance, commitment, and motiva-
campus, the living learning community is
                                              tion. Striking a balance between these
a residence option exclusively for business
                                              two cultures is one of the issues the case
students who share a strong interest in
                                              study explores. Vojtko’s research has
learning how to conduct effective business
                                              the potential to benefit U.S. Steel by
research in the areas of ethics and leader-
                                              helping the company prepare its manag-
ship. Students who elect to reside in this
                                              ers to more effectively lead a global
living community have the advantage
                                              and diverse workforce.
of working closely with business school
faculty members to develop their analytic     R. Venkatesh to Lead Undergraduate
                                                                                           Each academic     5
skills and explore how to use research        Research Effort                              year, the Berg
to shape effective business practice.
                                              The Berg Center was pleased to announce      Center makes
                                                     earlier this year that R. Venkatesh   research
                                                     is the new coordinator of under-
                                                     graduate research. Venkatesh
                                                                                           grants avail-
                                                     earned a PhD from the University      able to faculty
                                                     of Texas at Austin and joined the     members in the
                                                     Katz School in 1996. He is a
                                                     prolific researcher in the areas      Joseph M. Katz
                                                     of pricing, product bundling,         Graduate School
                                                     cobranding, e-commerce, and
                                                     sales force management. His           of Business
                                                     articles have appeared in such        and College
                                                     leading publications as the Journal
                                                     of Business, Journal of Marketing,
                                                                                           of Business
                                                     Journal of Marketing Research,        Administration.
                                                     and Marketing Science. Venkatesh
                                                     has applied his frameworks and
                                                     methodologies to address real-
                                                     world problems in high technology,
Katie Vojtko and Berg Center Director                digital goods, and entertainment
Audrey Murrell                                and has presented his work to academi-
                                              cians and practitioners in diverse forums.
CPLE Student Katie Vojtko
Researches U.S. Steel Project                 New Faculty Research Awards
Katie Vojtko, a junior in CBA and CPLE,       Each academic year, the Berg Center
recently assembled a case study based         makes research grants available to
on her findings from research she con-        faculty members in the Joseph M. Katz
ducted with Audrey Murrell on leadership      Graduate School of Business and College
and global diversity at two Eastern           of Business Administration. During the
European sites for U.S. Steel Corp.           2007–08 academic year, the center sup-
The study focuses on U.S. Steel’s             ported three faculty research projects:
operations in Slovakia and Serbia.
     Adding Value through
     Cutting-edge Research continued
    “The Endogenous Demand for Regulation”
        Donald Moser
        Jason Brown, PhD student
     This study examines the effects of litiga-
     tion and reputation on reporting decisions
     made by managers and purchasing deci-
     sions made by investors in markets where
     managers have the option to report on
     the value of an asset they are selling to
     investors. The study design involves experi-
     mental work that requires compensating
     participants as well as some programming,
     which has associated costs. The Berg
     Center is providing the funding necessary
     to set up and conduct this study.               Panther Hall, home of the new Leadership
6                                                    and Ethics Business Research Living
    “Do Liars Guide the Market?”                     Learning Community
        Nandu Nagarajan
                                                     Recent Faculty Research Publications
        Mei Feng
        Chan Li                                      Agle, B.R.; Donaldson, T.; Freeman, E.R.;
        Weili Ge, University of Washington           Jensen, M.C.; Mitchell, R.K.; and Wood, D.,
     This research looks at how firms treat their    “Dialogue: Toward Superior Stakeholder
     voluntary disclosures when they commit          Theory,” Business Ethics Quarterly, in press.
     accounting fraud in their mandatory disclo-     Campbell, S.M.; Ward, A.J.; Sonnenfeld,
     sures. Preliminary work by the investigators    J.A.; and Agle, B.R., “Relational Ties
     finds that managers do indeed act strategi-     that Bind: Leader-Follower Relationship
     cally in shaping their voluntary reporting to   Dimensions and Charismatic Attribution,”
     mimic their mandatory reporting. Besides        Leadership Quarterly, 2007.
     performing research to confirm their pilot
     results, the authors also are interested        Ward, A.J.; Lankau, M.J.; Amason, A.C.;
     in determining whether the fraudulent           Sonnenfeld, J.A.; and Agle, B.R.,
     voluntary disclosure misleads the stock         “Improving the Performance of Top
     market. In order to perform the studies,        Management Teams,” Sloan Management
     the authors require access to the First         Review, 48(3), 85–90, 2007.
     Call Historical Database, which the Berg
     Center is purchasing.                           Lankau, M.J.; Ward, A.J.; Amason, A.C.;
                                                     Ng, T.; Sonnenfeld, J.A.; and Agle, B.R.,
    “The Impact of Corporate Social                  “Examining the Impact of Organizational
     Responsibility on Long-term Firm                Value Dissimilarity in Top Management
     Performance”                                    Teams,” Journal of Managerial Issues,
        Vanitha Swaminathan                          XIX(1), 11–34, 2007.
        Vikas Mittal, former faculty member
        Christopher Groening, PhD student            Marks, P.; Polak, P.; McCoy, S.; and
                                                     Galletta, D.F., “Sharing Knowledge:
     The study authors have found that involve-
                                                     How Managerial Prompting, Group
     ment in corporate social responsibility
                                                     Identification, and Social Value Orientation
     activities is more beneficial to firms in
                                                     Affect Knowledge-Sharing Behavior,”
     certain circumstances than in others.
                                                     Communications of the ACM, in press.
     This research requires access to the lead-
     ing database on corporate social responsi-      Darcy, J.; Hovav, A.; and Galletta, D.F.,
     bility, which is maintained by KLD Research     “Awareness of Security Countermeasures
     & Analytics, Inc. The Berg Center is funding    and Its Impact on Information Systems
     the update of the KLD database for use by       Misuse: A Deterrence Approach,”
     faculty researchers at the Katz School.         Information Systems Research, forthcoming.
Pinto, J.; Leana, C.; and Pil, F., “Corrupt    Other Faculty Projects
Organizations or Organizations of Corrupt
                                               Former faculty member Vikas Mittal, PhD
Individuals? Two Models of Organizational
                                               student Christopher Groening, and Vishal
Corruption,” Academy of Management
                                               Singh of Rice University are continuing
Review, in press.
                                               a project that Mittal and Groening began
Leana, C., and Pil, F., “Social Capital        last year with Berg Center support. In
and Organizational Performance: Evidence       order to support the revisions necessary
from Urban Public Schools,” Organizational     for journal resubmission, the center is
Science, 17(3), 353–66, 2006.                  funding the addition of the latest year
                                               (2007) of the Institute of Shareholder
Masters, M.F., “Reforming Human                Services corporate governance database.
Resources Management in the Federal            The research posits that the influence of
Sector,” Perspectives at Work, 9(2),           customer satisfaction and corporate gov-
29–30, 2006.                                   ernance on a firm’s financial performance
                                               is moderated by the number of segments
Mitnick, B.M., and Mahon, J.F., “The           in which a firm competes. The paper           Brad Agle,          7
Concept of Reputational Bliss,” Journal
of Business Ethics, 72(4), 323–33, 2007.
                                               applies stakeholder theory as well as         associate
                                               managerial attention theory to develop its
                                               arguments. Besides its general relevance      professor of
Mitnick, B.M., and Getz, K., “Agency,
Theory of”; “Fiduciary Norm”; “Interstate
                                               to stakeholder theory, a major research       business admin-
                                               stream in the literature on both corporate
Commerce Commission”; “Iron Triangles”;
                                               social behavior and corporate strategy,
                                                                                             istration, has
“Market Bubbles”; “Market Failure”;                                                          been awarded
                                               the paper is of interest in understanding
“Public Interest”; and “Regulation and
Regulatory Agencies,” in Encyclopedia
                                               how managers attend to and address the        support from the
                                               concerns of a variety of firm stakeholders.
of Business Ethics and Society, Robert                                                       Lipson Fund for
Kolb, ed., Thousand Oaks, Calif.: Sage
Publications, in press.
                                               Brad Agle, associate professor of busi-       understanding,
                                               ness administration, has been awarded
                                               support from the Lipson Fund for under-       measuring,
Bangs, R.; Murrell, A.J.; and Higgins, M.,
“Minority Business Bidding for Local
                                               standing, measuring, and achieving the        and achieving
                                               objectives of ethics education in business
Government Contracts: The Complex
                                               schools. Agle is conducting research on       the objectives of
Issue of Availability,” Journal of Health
& Social Policy, 23(2), 2006.
                                               character development, particularly as it     ethics education
                                               concerns business schools and their role
                                               in the development of the ethics of future
                                                                                             in business
Murrell, A.J., and Logsdon, J., “Martin
Luther King’s Contributions to                 business leaders. Agle’s research will        schools.
Management Scholarship and Practice.”          look to answer the following questions:
Business & Society Special Issue, in press.    (1) What are, or what should be, the
                                               objectives of ethics education in business
Murrell, A.J., and Zagenczyk, T., “The         schools?; (2) What methods of measure-
Gendered Nature of Role Model Status:          ment do we have, or what tools will need
An Empirical Study,” Career Development        to be developed, for evaluating how well
International, 11(6), 560–78, 2006.            the objectives of ethics education have
                                               been met?; and (3) How well are we
Nagarajan, N.J.; Cheng, S.; and Evans, J.,     currently meeting the ethics education
“Takeover Threats and the Importance of        objectives of business schools? Agle, with
Board Size in Corporate Governance,”           help from three undergraduate research
Review of Quantitative Finance and             assistants, is conducting a literature
Accounting, 2007.                              review; interviews with key business
                                               school constituents; and a survey of
Nagarajan, N.J.; Evans, J.; and Kim, K.,
                                               current ethics training materials from
“Uncertainty, Legal Liability, and Incentive
                                               business schools, companies, and ethics
Contracts,” The Accounting Review, 2006.
                                               education institutes.
                       Adding Value through
                       Collaborative Community Impact
                                                                       Invited by the Berg Center, the judging
                                                                       panel included business ethics experts
                                                                       U.S. Attorney Mary Beth Buchanan; corpo-
                                                                       rate ethics officers Karen Davis of Bank
                                                                       of New York Mellon, Perry Minnis of Alcoa,
                                                                       and Roxanne Turner of Kennametal;
                                                                       Carnegie Mellon University professor
                                                                       Peter Madsen; and Darrin Grove, CEO
                                                                       of past winner TrueFit Solutions.

                                                                       The 11 finalist companies were, in
                                                                       the large company category (more
                                                                       than 2,500 employees), H.J. Heinz Co.;
                                                                       Mine Safety Appliances (MSA) Co.;
                                                                       and Westinghouse Electric, LLC; in the
                                                                       medium company category (250–2,500
8   CPLE students                                                      employees), ACUSIS, Bombardier,
    say that                                                           Limbach Facility Services, and McKesson
    working on         Sharon Allen, chair of the Board of Directors   Automation; and, in the small company
                       of Deloitte LLP, addresses the Pittsburgh       category (less than 250 employees),
    these real-        Business Ethics Awards audience.                Courtesy Suzuki, Henne Jewelers, IQ Inc.,
    world projects     Annual Pittsburgh Business                      and Metropolitan Window Co.
    is challenging     Ethics Awards
                                                                       A record number of about 300 attendees
    but valuable in    The David Berg Center for Ethics and            turned out for the awards event, held
                       Leadership again served as a sponsor for        at the Omni William Penn Hotel in mid-
    that they learn    the Pittsburgh region’s Annual Pittsburgh       February. The event was highlighted by a
    what it takes to   Business Ethics Awards (PBEA). PBEA             keynote address from Sharon Allen, chair
                                                                       of the Board of Directors of Deloitte LLP.
    be an effective    is the regional-level competition of the
                       national American Business Ethics
    servant leader.    Awards. Established by the Society of           CPLE Student Team Helps Turn
                       Financial Service Professionals (SFSP),         Nuisance Bar into Neighborhood Café
                       the awards honor U.S. businesses that           As part of their required service learning
                       demonstrate a strong commitment to              class, teams of CPLE students were
                       ethical business practices.                     assigned to work with New Hope for
                                                                       Neighborhood Renewal, Inc., the develop-
                       The Berg Center’s role involved assisting       ment arm of New Hope Church, located
                       with the nomination process by solicit-         in the Marshall-Shadeland community
                       ing nominations through the center’s            on the North Side of Pittsburgh. One of
                       corporate database and Web site, the            several social entrepreneurship ventures
                       SFSP Web site, and radio advertising by         was for a team to write a business plan
                       fellow sponsor KDKA NewsRadio 1020.             for New Hope to purchase a local
                       CPLE sophomores, along with center staff        nuisance bar and renovate it to create
                       members, visited each of the 11 finalist        a community gathering place and café
                       companies. The students prepared by             as well as employment opportunities
                       researching the individual companies            for neighborhood youth.
                       in their required Managerial Ethics and
                       Stakeholder Management class followed           The team conducted marketing research,
                       by the on-site visit, during which they         made financial projections, and pro-
                       spoke with CEOs and ethics officers             vided staffing recommendations for
                       about the company’s ethics policies and         the café. Several months later, the
                       practices. Finally, each student team           Café ‘n’ Creamery hosted a grand opening
                       assembled a company report for submis-          and ribbon-cutting ceremony. The estab-
                       sion to the PBEA judging panel.                 lishment that a little more than two years
ago was the scene of two shootings             reaching ‘world-class’ per-
now is a friendly gathering place for          formance. … We all know
neighbors to meet while enjoying what          and recognize the vast
the café boasts is the best coffee and         contributions he’s made
gelato in Pittsburgh.                          in his career in ensuring
                                               that not only Alcoa was
The café already is posting healthy sales      at the top of its game,
and reports that neighborhood youth            but also every one of his
are stopping by to play board games,           local colleagues as well.
and patrons are taking advantage of            We are extremely grateful
the free Wi-Fi and raving about the coffee.    for all he’s done for us,
Further, a new lease has just been signed      and I’m sure our peers
to bring in income from office space           in Pittsburgh would echo
and classrooms above the café. CPLE            that sentiment.”
students say that working on these real-
world projects is challenging but valuable,    CPLE Senior Organizes                         Brad Agle presents Perry     9
in that they learn what it takes to be         Fundraiser for Kids in Third-world            Minnis with the Excellence
an effective servant leader.                                                                 in Leadership Award
                                               Countries
Perry Minnis Receives 2007                     CPLE student Casey Hohman recently
Excellence in Leadership Award                 organized the Style Your Sole Pitt Block
                                               Party in conjunction with TOMS Shoes and
The Berg Center presents the Excellence        the University of Pittsburgh Entertainment
in Leadership Award to an individual           Business Association.
who has distinguished him- or herself
in business with a particular focus on         TOMS Shoes is a brand of shoe created
ethical business practices, community          to help children living in poverty by Blake
involvement, and personal integrity.           Mycoskie, a former contestant on the
Perry Minnis, global director of ethics,       reality television show The Amazing Race.
compliance, and advisory services for          Mycoskie came up with the idea for TOMS
Alcoa, Inc., was the 2008 award recipient.     after visiting Argentina and seeing many
Minnis is responsible for implementing         children without shoes living in impover-
Alcoa’s Ethics and Compliance Program          ished villages. He modeled TOMS after
worldwide, having assumed leadership           the traditional lightweight Argentinean-
for Alcoa’s efforts in ethics, compliance,     style shoes called alpargatas. For every
and business conduct in 2000. Minnis is        pair of shoes that TOMS sells, it gives
a member of the Board of Directors of the      a pair to a child in need in a third-world
Ethics Officers Association, a professional    country. To date, more than 60,000
association that promotes ethical busi-        pairs of TOMS Shoes have been given
ness practices and serves as a forum for       to children in Argentina and South Africa.
senior ethics officers to exchange ideas
for designing and enhancing ethics and         About 100 Pitt students attended
compliance programs. He also is chair          Hohman’s event. For $40, attendees were
of the Manufacturers Alliance Ethics and       able to create their own version of a pair
Compliance Council, a leading executive        of TOMS, while at the same time ensuring
development and business research              that another pair would soon be on its
organization serving senior management.        way to a child in need. Hohman sought
                                               support from the Berg Center and student
Minnis’ colleague, who nominated him for       activities funds, which enabled him to buy
the award, said, “Perry has been an amaz-      refreshments and entertainment for the
ing resource for all ethics professionals in   block party as well as the art supplies
the Pittsburgh area, allowing other com-       for decorating the shoes. Forty-two
panies to benchmark against Alcoa again        students created their own uniquely styled
and again and again and taking time out        shoes, enabling 42 children in need to
of his busy schedule to assist others in       receive a new pair of TOMS.
                                       Adding Value through
                                       Collaborative Community Impact continued




                                                                                     (Left to right) Donna Woodall, outreach
                                                                                     director at Microsoft; Dean John T. Delaney;
                                                                                     and Audrey Murrell
10
                                                                                     the afternoon session, they reinforced
                                                                                     the information they learned in a team
     High school girls, teachers,                                                    challenge by making a video about how to
     chaperones, and staff pose                                                      ensure safety when using technology. The
     for a group photo at DigiGirlz.
                                                                                     day concluded with the teams presenting
     Right: Jacqueline Pike, a Katz                                                  their videos and vying for first prize before
     doctoral student, assists                                                       a panel of judges.
     a DigiGirlz participant.
                                                                                     MBA Students Launch Net
                                                                                     Impact Chapter
     Eighty girls
                                                                                     Katz MBA students recently launched a
     representing                                                                    chapter of Net Impact, a nonprofit “global
     several local                                                                   network of leaders who are changing
                                                                                     the world through business.” Net Impact
     high schools                      Berg Center and Microsoft
                                                                                     chapters focus on helping leaders help
                                       Host DigiGirlz Program on Safety
     came together                     in Technology
                                                                                     their organizations to have a positive
     to learn about                    The Berg Center and Microsoft Corp.
                                                                                     impact on the communities in which
                                                                                     they do business. Students learn about
     safety and ethics                 recently joined forces to host DigiGirlz,     sustainable business practices, corporate
     in technology                     a nationwide program that provides high       social responsibility, business ethics, and
                                       school girls with an inside look at careers   many other relevant topics.
     during this                       in business and technology. They heard
     one-day event.                    a keynote presentation by Linda Rosato-       Each year, nearly 2,000 students from
                                       Barone, commander and chief of staff          chapters around the world gather with
                                       with the Pittsburgh Bureau of Police, who     prominent business leaders for the
                                       talked about her career and how technol-      annual Net Impact Conference. This year,
                                       ogy enables those in law enforcement to       full-time MBA students Bryan Josephs
                                       combat such problems as fraud, Internet       and Lauren Russo attended the confer-
                                       predators, and identity theft.                ence to gather ideas for launching Net
                                                                                     Impact at Katz. A short time later, they
                                       The girls also heard from a panel com-        kicked off the Katz chapter by organizing
                                       posed of staff from Microsoft and Google      a behind-the-scenes tour of two
                                       and a Katz School faculty member on           Leadership in Energy and Environmental
                                       “Safety in Technology Use.” At lunch,         Design (LEED)-certified green buildings—
                                       they enjoyed hands-on exposure to a           the David L. Lawrence Convention Center
                                       Technology Showcase featuring state-          and the PNC Firstside Center—in
                                       of-the-art Microsoft products. During         Downtown Pittsburgh.
The students learned about how PNC               Charlie Fox, a one-year MBA student who
Bank, in its quest to become America’s           helped with the chapter launch, said,
first “green bank,” helped initiate changes      “Learning how high-profit companies are
that extended to the way its vendors do          adapting to higher energy costs through
business. Students were able to ask              increased focus on sustainability and
questions about the return on investment         how business leaders can use their role
and payback period for the higher costs          as influential citizens in society to do
often associated with using newer, more          what’s best for the common good and the
environmentally friendly technologies.           bottom line—that’s what Net Impact will
                                                 allow us to explore.”


About David Berg
                                                                                                “I never forget
One of New York City’s most accomplished         art and entertainment figures as Andy
developers and most generous philanthro-         Warhol and the Rolling Stones.                  the individuals    11
pists, real estate lawyer David Berg grew                                                        and institutions
up in Manhattan, the younger son in a            One of the greatest influences in his life,
struggling Jewish family that arrived at Ellis   Berg said, was Dorthea Thomas, the head         that have helped
Island in 1904.                                  librarian of the children’s section of the      along the way.”
                                                 New York Public Library on 125th Street.
During a career spanning nearly 70 years,
Berg, together with many clients, developed      “She helped me get books from the adult
shopping centers, apartment buildings,            section after I had finished everything in
and hotels in many cities, including              the children’s section,” said Berg, who
Regency Towers in New York, N.Y., and             graduated from high school at 15.
Harbor Towers in Boston, Mass. He also
was a major shareholder in several banks         Charitable Contributions
in 1958, among them the Gotham Bank,             The University of Pittsburgh, where Berg
which he and some of his clients developed       spent his undergraduate years and his first
and merged into the Royal National Bank          year of law study, and Harvard Law School,
of New York in 1963; he sold out in 1972.        where he earned his LLB in 1926, were
                                                 high on Berg’s list of important causes.
Influences
                                                 “I never forget the individuals and institu-
Berg credited his mother—who not only
                                                  tions that have helped along the way,”
put him through college and law school
                                                  he said. “I have experienced a great
but also helped him get his first clients—
                                                  deal of joy in setting up scholarships
for much of his success. “My first bits of
                                                  at the schools that prepared me for such
legal work,” he said, “were small cases
                                                  a gratifying career.”
from my mother’s inquiries of her custom-
ers in the hand laundry she ran on 44th          Berg also contributed to Yeshiva University,
Street. Some of her customers ran rooming        where he was a trustee; Benjamin N.
houses, and I began to build up a practice       Cardozo School of Law, where he was
in legal matters involving leases and owner-     a director; and Adelphi University.
ships of small rooming houses and hotels.”
                                                 Berg’s other charitable contributions
By the late 1930s, Berg had built a good         include an 18th-century English dining
clientele and reputation in the hotel field.     room—complete with furniture, silver,
His work led him into the hotel business         ceramics, and other antiques—which he
as an owner, and at one time he and his          had installed at the Israel Museum in
clients owned nearly 30 hotels. In 1942,         Jerusalem. Dedicated to Berg’s mother
he became an owner, at his clients’              on his 70th birthday in 1974, the room
request, of New York’s famed Chelsea             remains among the museum’s most
Hotel—frequented in the 1960s by such            popular attractions.
     David Berg Center for Ethics and Leadership
     Faculty and Staff
     Director                                     Audrey J. Murrell

     Coordinator                                  Cathy Vargo

     Administrative Assistant                     Melissa Walawender

     Advisory Committee Chair                     H.J. Zoffer

     Coordinator, Undergraduate Programs          Ray Jones

     Associate Director, Faculty Research         Barry Mitnick

     Coordinator, Undergraduate Research          R. Venkatesh

     Coordinator, Undergraduate Investment Club   Jay Sukits
12
     Coach, CPLE                                  Jody Bechtold

     Coordinators, CPLE Communications Academy    Carolyn Kerr and William Neff

     Coordinator, CPLE Mentoring Program          Tom Baker



     Katz/CBA Advisory Committee
     H.J. Zoffer (Chair)                          Edward Palascak
     Dean Emeritus and Professor of Business      Associate Dean, College of Business
     Administration                               Administration

     Ray Jones                                    Akin Sayrak
     Coordinator, Undergraduate Programs,         Associate Professor of Business
     and Assistant Professor of Business          Administration
     Administration
                                                  Pandu Tadikamalla
     Jocelyn Kauffunger                           Professor of Business Administration
     Assistant Professor of Business
     Administration                               William Valenta
                                                  Assistant Dean, MBA Programs
     Barry M. Mitnick
     Associate Director, Faculty Research, and    Cathy Vargo
     Professor of Business Administration and     Coordinator, David Berg Center for Ethics
     Public and International Affairs             and Leadership

     Audrey J. Murrell                            R. Venkatesh
     Director, David Berg Center for Ethics       Coordinator, Undergraduate Research,
     and Leadership, and Associate Professor      and Associate Professor of Business
     of Business Administration, Psychology,      Administration
     and Public and International Affairs
Dean’s Message
Ethics and leadership are closely con-         One of the highlights of the 2007–08 year
nected; ethical crises in organizations        was the opportunity to host two visits
often reflect failures of leadership. To       from Sharon Allen, chair of the Board
help students develop leadership skills,       of Directors of Deloitte LLP. As you may
course work and workshops at the Joseph        know, Ms. Allen was named one of the
M. Katz Graduate School of Business and        World’s 100 Most Powerful Women by
College of Business Administration (CBA)       Forbes magazine and one of the 100
introduce them to ethical dilemmas and         Most Influential Players in Corporate
provide them with the tools necessary          Governance by Directorship magazine.
to address these dilemmas. Exposure to         During our second annual Thought
issues of ethics and professional respon-      Leaders in Business seminar in 2007,
sibility prepares our students for the         we were thrilled to hear Ms. Allen discuss
varied and complex management issues           the importance of work-family balance.
that are inherent in a global economy.         In essence, she noted that employees
                                               choose on a daily basis whether to use
Since 1999, the David Berg Center for
Ethics and Leadership has played an
                                               their initiative, creativity, and passion    Exposure to        13
                                               at work. To succeed in the marketplace,
integral role in the school. The center        firms must create an environment that        issues of ethics
partners with us in identifying leading-       encourages employees to use all of           and professional
edge curricular initiatives that enable us     their talents. Deloitte has become a
to equip our students for the leadership       highly desirable place to work because
                                                                                            responsibility
challenges they will face. The center helps    of this approach. Ms. Allen returned in      prepares our
us bring in exemplary leaders who share        2008 to deliver an equally powerful
corporate and personal experiences and         message to hundreds of guests repre-
                                                                                            students for
best practices with students. The center       senting key small, medium, and large         the varied
facilitates research opportunities in ethics
for our faculty and helps us reinforce to
                                               companies at the 2008 Pittsburgh             and complex
                                               Business Ethics Awards, which the Katz
our region the importance of sound, ethi-      School cosponsored.                          management
cal business practices for nonprofit and                                                    issues that are
for-profit companies.                          At a time of record energy prices and
                                               concerns about global climate change,        inherent in a
In December of last year, I was delighted      the need is great for education in ethics    global economy.
to announce the appointment of Dr.             and professional responsibility. Here at
Audrey Murrell, associate professor of         Katz/CBA, we are fortunate that the David
business administration, as the new direc-     Berg Center for Ethics and Leadership
tor of the Berg Center. In six months, Dr.     has taken the lead in this area. All of
Murrell has inspired many new strategic        our constituencies benefit from the
initiatives and is in the planning stages      efforts of the Berg Center.
for many more. Her efforts have built
successfully on the activities initiated by
her predecessor, Dr. Brad Agle. The Berg
Center has been successful because of
the efforts of Dr. Agle and Dr. Murrell. The
school and center are fortunate to have
such talented leaders.                         John T. Delaney
                                               Dean
                                               Joseph M. Katz Graduate School
                                               of Business and College of
                                               Business Administration
                       Joseph M. Katz Graduate School of Business
                        and College of Business Administration
                       David Berg Center for Ethics and Leadership
                       2809 Wesley W. Posvar Hall
                       230 South Bouquet Street
                       Pittsburgh, PA 15260

                       www.business.pitt.edu/berg




The University of Pittsburgh is an affirmative action, equal opportunity institution. Published in cooperation with the Department of University Marketing Communications. UMC64022-0508

				
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