TEACHING BUSINESS ETHICS: THE INTEGRITY CAPACITY APPROACH AT WRIGHT STATE UNIVERSITY
Dr. Joseph A. Petrick
Director, Institute for Business Integrity
Raj Soin College of Business Wright State University Dayton, Ohio USA July 22, 2004
AGENDA Teaching Business Ethics at Wright State University
A. Business Curriculum Courses B. Institute for Business Integrity (Extracurricular) C. Integrity Capacity Approach to Business Ethics 1. Business Integrity Capacity Approach: Process, Judgment (R2C2), Development & System 2. Empirical Documentation of Effectiveness (N = 400) D. Summary
Goal Competencies of Teaching Business Ethics
• Cognitive Competence
• Character-Strengthening Competence • Conduct Expectations/Sustained, Responsible Behavioral Competence • Context-Enhancement Competence
Business Integrity Capacity
The individual and collective business capability for repeated process alignment of moral awareness, deliberation, character and conduct that demonstrates balanced judgment, enhances sustained moral development, and promotes supportive systems for moral decision making.
Instrumental Value of Business Integrity Capacity
Business Integrity Capacity
Reputational Capital
Sustainable Competitive Advantage and World-Class Business Performance in the External Environment
Business Process Integrity Capacity
The alignment of individual and/or collective business moral awareness, deliberation, character, and conduct on a sustained basis, so that enhanced reputational capital results.
Business Process Integrity Capacity
MORAL AWARENESS
Perception Sensitivity
MORAL DELIBERATION
Analysis Resolution
MORAL CHARACTER
Cognitive Readiness to Act Volitional Readiness to Act
MORAL CONDUCT
Responsible Sustainable
Business Judgment Integrity Capacity
The balanced and inclusive use of key ethics theories and their correlated cognate theoretical resources in the analysis and resolution of individual and/or collective business moral issues.
Judgment Integrity Capacity (R2C2)
Flexibility
Build Virtuous Character Enhance Supportive Contexts
Internal
Follow Right Rules Achieve Good Results
External
Control
Positive & Negative Zones of Judgment Integrity Capacity (R2C2)
Negative Zone
Character
Abdicates Authority
Positive Zone
Wastes Energy
Context
Shows Consideration Slows Production Facilitates Interaction
Envisions Changes Disrupts Continuity
Acquires Resources
Negative Zone
Amoral Manager
Collects Information Neglects Possibilities Maintains Structure Stifles Progress Provides Structure Offends Individuals Initiates Action Destroys Cohesion
Rules
Results
EXTREME BUSINESS MANAGER CONCERN FOR PROFITS
Flexibility
Character
(INVOLVEMENT)
Context
(ADAPTABILITY)
Internal
External
Rules
(CONTINUITY)
Results
Control
(EFFECTIVENESS)
Positive & Negative Zones of Human Reality, “Business Philosophy” & Economic Theories
“Developmentalist” Community Capitalism
Negative Zone
Abdicates Authority
Positive Zone
Wastes Energy
“Experimentalist” Entrepreneurial Capitalism
Slows Production
DRIVE TO BOND
DRIVE TO LEARN
Disrupts Continuity
Negative Zone
Amoral Manager/Follower
Neglects Possibilities
DRIVE TO DEFEND
DRIVE TO ACQUIRE
Destroys Cohesion
“Structuralist” Regulatory Capitalism
Stifles Progress
Offends Individuals
“Pragmatic” Investor Capitalism
Business Developmental Integrity Capacity
The improvement of informal work culture, as well as, individual and collective business moral reasoning capabilities from a stage of selfinterested connivance, through a stage of external conformity, and onto a stage of internalized commitment to moral principles.
Organizational Developmental Integrity Capacity Stages
Principled Integrity Democratic Participation Allegiance to Authority Popular Conformity Machiavellianism Social Darwinism
HOUSE OF MANIPULATION (Connivance)
HOUSE OF INTEGRITY (Commitment)
HOUSE OF COMPLIANCE (Conformity)
Business System Integrity Capacity
The development and alignment of the moral infrastructure within the business organization and the shaping of the external moral environment of the business organization to provide a supportive context for sound moral decision making.
Business Organization Internal Systems 1. Compliance-Based System - U.S. Federal Sentencing Guidelines - Sarbanes-Oxley Act - External Conformity Infrastructure 2. Integrity-Based System - Ethics Needs Assessment - Ethical Leadership Development - Value Commitment Infrastructure
Business Organization External Systems 1. Domestic External Environment -Corruption Elimination and/or Control -Proactive Positive Stakeholder Relations & Triple
Bottom Line Accountability
2. Global External Environment -Corruption Elimination and/or Control -Proactive Positive Stakeholder Relations & Triple
Bottom Line Accountability
SUMMARY Teaching Business Ethics at Wright State University
A. Business Curriculum Courses B. Institute for Business Integrity (Extracurricular) C. Integrity Capacity Approach to Business Ethics 1. Business Integrity Capacity Approach: Process, Judgment (R2C2), Development & System 2. Empirical Documentation of Effectiveness (N = 400)