ETHICS-BASED BUSINESS PROGRAMS IN CHURCH-RELATED COLLEGES + DAVID M. LUDINGTON + Professor and Chair of General Business Section Purdue University North Central There is little doubt that this nation is facing a crisis in ethics. Everywhere we look-government, business, unions, education, religion, or the media-we see blatant examples of unethical behavior. The book Habits of the Heart makes an excellent case that this nation is losing its sense of community and its traditional values. Fortune magazine claims that members of the current generation do not share the traditional values of earlier generations, that they "lack a certain measure of probity and honor . . . and . . . the ethic they have, half articulate but deeply felt, takes the idea of a free market and turns an economic theory into a personal moral code; that this new ethic takes the idea of earning money at any cost, and places it as an acceptable norm, rather than a measure of unethical behavior" (Fortune, 1986). While the illegal or immoral activities of the S & L Five, Jim Baker, Ivan Boesky, Ted Kennedy, and Jim Wright, make headlines, the most important unethical happenings occur in the day-to-day decision-making that takes place within the infrastructures of business and government. If this nation is going to be successful in returning to its moral and ethical roots, the change must come here (Ludington, 1990). One major role of church-related 1 colleges is to provide business graduates who can effect that change. The Foundation of Business Ethics: The Protestant Work Ethic In earlier times business ethics were based on the values of the Protestant Work Ethic. This ethic was at the heart of Adam Smith's capitalism. It revolved around the traditional values of freedom of the individual, individual responsibility, and growth (productivity). Individuals were free to use their property as they wished and they were free to start and run businesses. They were free to prosper if they followed the ethical norms of the Christian society. The price of individual freedom was individual responsibility. Most businesses were local. People knew their neighbors and did not trade with unethical firms. In the main, national firms also prospered because they treated their customers in an ethical manner. The values of our society reflected the Judeo-Christian religions and were put into practice by following the Protestant Work Ethic (Cavanagh, 1988). The Protestant Work Ethic holds that a person's values came from the immediate family, the extended family, the church, and educational institutions. At the heart of individual responsibility was the family and the church. They were responsible for the cultural values of the society. The family usually played a major role in instilling these values in each family member. 2 Current State of the Protestant Work Ethic In recent years we have seen a breakdown in the immediate family, extended family often means the daycare center, most public educational institutions are afraid to teach values because this may violate the U.S. Constitution, and the influence of the church has diminished. Gerald Cavanagh has written that in the last twenty-five years the values represented by the Protestant Work Ethic (hard work, self-reliance) have changed to the values of entitlement and self-fulfillment. The Protestant Ethic has shifted to pluralism and self-fulfillment. Hard work has been replaced by salary and status; self-control and sobriety by self-fulfillment; self-reliance by entitlement; perseverance by impatience and the short-term view; save and plan by consumption, buy on time, and save little; and honesty and observing the "rules of the game" by obeying the law-but in any case, don't get caught. We are now a nation in which relativism, pluralism, and individualism are very strong. We tend to follow our individual set of values, not a set of universal moral norms (Cavanagh, 1984). Many feel this is one outcome of the elimination of Christian-based values in our systems of education. Values Development in Higher Education Higher education is a major segment of a society where a nation transfers its values. Throughout the history of this nation higher education was influenced by 3 Judeo-Christian values. The curriculums of most colleges and universities, secular or church-related, included some form of Judeo-Christian values education. Most institutions provided much guidance on how a person should behave. Within the public secondary education system the standards of behavior and positive ethical change used to come from the teaching of philosophy and religion, but we do not do this in secondary education any longer. In recent years the Supreme Court has taken a "legal realists" view of the Constitution (the legitimacy of law and of legal institutions is measured by how well they serve the needs of the society) as opposed to a "historical view" (emphasizing the evolutionary process of the law by concentrating upon the origin and history of the legal system (Boehlman, 1989). Our public secondary education system no longer teachers these values for fear of violating these recent court interpretations. In public higher education, most students who study philosophy and ethics do so from a descriptive or comparative perspective. Most of the emerging business ethics centers in public business schools' claim ". . . that ethical theory, or knowledge of the ultimate bases for moral appeals inherent in human nature, is not necessary for proposing (ethical) solutions" (Bahm, 1982). The study and application of ethics from a normative perspective rarely occurs in places outside the church-related colleges and universities. The current 4 generation that Fortune writes about is the first generation to be educated under current applications of the separation of church and state clause of the Constitution. Thus, if Fortune is correct that this generation lacks the traditional values of previous generations, it is obvious that the lack of values-based education must have played some part in this decline. If the public institutions are not going to teach business ethics from a normative perspective, then this role rests with the church-related institutions. IMPROVING BUSINESS ETHICS THROUGH CHRISTIAN HIGHER EDUCATION The Role of Church-related Colleges in Values Development If this nation expects to improve the ethical orientation of its business people, it must do a better job of instilling Christian values. Business ethics is the application of positive values to business situations. Without the transfer of Judeo-Christian values, business ethics in American education is little more than the application of situational ethics: ethical standards that shift based on the dynamics of a situation. Since the secular colleges have effectively stopped this values transfer, America's church-related colleges are the best hope for the development of business programs that feature a values-based ethical orientation. These institutions should concentrate on the development of business departments as ethics centers for the analysis, development, and 5 presentation of ethical theory and discussion based on our Judeo-Christian culture. Students must learn and understand these values, develop the ability to recognize and develop solutions to problems, and be able to synthesize problems through the process of logical deduction. The most important step in this process is the development of affective-domain skills: a student's ethics, values, attitudes, beliefs and his or her conscience. The Need for Christian-based Business Education There is much evidence that the younger generation is lacking moral direction. Still, contrary to popular belief, the younger generation is not anti-religious. A recent survey of randomly selected adults found that the "baby boomers" often have a deep faith. This study surveyed two groups of "boomers": older (those born between 1946 and 1955) and younger (those born between 1956 and 1965) The study found that 89 percent of the younger group and 83 percent of the older group considered themselves religious. In other areas the younger group also affirmed traditional Christian beliefs to a greater degree than did their older peers (Austin, 1990). We could conclude from this study that the current generation is receptive to a Christian-based business education. Yet, this study also found that as "boomers" (and presumably their children) pursue their quest for individual spiritual development they may not look to the 6 same churches they attended as youths. They are often unsure of the proper direction to take in becoming a religious person. The key is converting believers into belongers and practitioners. It is assumed that students pick Christian-based colleges because they are looking for this direction in their education. Yet, a recent survey of college students commissioned by Pat Robertson questioned beliefs on premarital sex, the abuse of alcohol and other drugs, and other moral and ethical issues. It found that students' attitudes on church-related campuses were not much different from those of students on secular campuses. This strongly suggests that the youth at our church-related colleges need help in developing their value orientations. Specific Philosophies for Developing Christian-Based Business Ethics Frameworks Curriculum: Most church-related colleges consider themselves to have a liberal arts orientation. People who support the philosophies underlying a liberal arts education suggest that there is value from such a broad-based educational experience. If this is true, this type of education provides an excellent foundation for the development of an interdisciplinary framework for a values-based business ethics experience. A business curriculum should include, as part of the general education requirements, courses about the Christian religion. Students also should take political science and 7 economics courses based on the philosophies of Adam Smith. In the past there were too many courses in these areas that reflected the professor's Marxist views. Considering the failure of Marxism worldwide, students need to receive a solid background in the economic and political foundations of democratic-capitalism and the Protestant Work Ethic before beginning their business courses. The general education (often called liberal arts) courses provide the vehicle for this foundation. General education requirements for business students also should include courses in classical ethics and critical thinking. These courses provide the foundation for a later course in business ethics. They also provide students with the ability to integrate ethical considerations into the courses they will take in the functional areas of business. A principle of the Protestant Work Ethic is hard work. It is imperative that church-related colleges become more rigorous. There is an impression that many smaller church-related colleges have lowered standards in response to declining enrollments or to counter competition from public schools. While there may be short-term financial rewards to such actions, this is not a long-term solution, nor does it support the Protestant Work Ethic. If hard work is a Christian value, Christian colleges should reflect this value. It is a vital step in returning our nation to the Protestant Work Ethic. As Christians, business faculty who teach in 8 church-related colleges have a special responsibility to share their work with others. These faculty need to begin to write about Christian business ethics. Philosophers usually deny the ". . . extension of the theological domain to include philosophy." For example, there is not a separate field of theological business ethics. Few business ethics papers reflect a theological view. Yet, according to one author, "If religious ethics reflects the values and morals of a community, then the task of theologians in business ethics may be the direct application of that morality to business issues" (De George, 1986; Ludington, 1990). Business faculty at church-related colleges need to begin to fill this void. If we are teaching at church-related colleges it is usually because we believe that education is an important role of churches in our society and that the application of the Christian religion to education makes the educational experience all the richer. We need to examine business issues in this context and share our beliefs with our colleagues at other church-related colleges and with those at the secular colleges. Christians have always felt a special need to share their beliefs. This should be a special role of business faculty in a Christian nation. It is of utmost importance that the curriculum be taught in a manner that reflects basic Christian values. Such values include: respect for others, concern for others, honesty, trustworthiness, integrity, fairness, 9 fidelity, respect of the rule of law, commitment to excellence, positive influence on others, and accountability for one's actions. These values need to be imprinted. If we are going to be successful in developing ethical business students we must insist on the adherence to a standard set of values. We need to review our courses, our course outlines, and our lecture notes to insure that our course offerings reflect the values we cherish. Organizational Structures: Philosophies, Leaders and Constituents A major role of church-related colleges is stewardship- obligation to others. This ethical heart is part of the mission which should be shared by all in the organization. It may be beneficial in some ways to seek a diverse faculty and administration; however, this diversity should not be at the expense of this most important of roles. The business department needs to develop a code of conduct that is based on the values mentioned in the previous section. These codes of conduct (or ethics) provide documentation for ethical behavior within the department. They should apply to students, faculty, and the staff. These codes are analogous to the ones found in ethical business firms. The use of these codes will provide students with practical experience in working under an ethical framework. It is important to let students know that making mistakes is okay, but it is also important that the student 10 understands that he or she must take responsibility for one's own actions. Thus, we treat mistakes for what they are: mistakes. But, if students are going to learn from these mistakes, they must take the responsibility (and punishment if necessary) for their actions. In the same way, faculty must be willing to point out these mistakes, confront the student, and suggest the proper answer or course of action-even at the expense of a favorable course evaluation. It is important that the church-related colleges expect personal integrity and ethical decision-making from everyone in the organization-from the president to the faculty to the registrar. Students need "living models" who act as mentors. Faculty are often role models for students. Students learn from what faculty do as much as from what they say. The same is true of administrators. Unethical behavior toward students by the staff can undo in a very short time the ethical development that it took the faculty years to imprint. The faculty and staff of church-related colleges should go out of their way to find and reward ethical behavior. Often this is part of a very informal process. It can be most effective on a one-to-one basis. We also need to show sensitivity for individuals by encouraging open communication and consultation. We should not confuse dissent with dislike or disrespect. It is also necessary to establish boundaries for acceptable communication patterns. 11 We are preparing these students for jobs in business, government, and the not-for-profit sectors. With few exceptions these areas feature some type of hierarchical organization. All the people involved in the communication process should practice open communication and consultation. THE SPECIAL ROLE OF BUSINESS FACULTY IN A CHURCH-RELATED COLLEGE Business faculty in a church-related college have a special responsibility to be an integral part of the college. In many of these colleges business majors often represent one-third to most of the majors. Often business faculty have the largest classes, the most advisees, the heaviest work load, and are the least respected faculty on campus. They often become isolated. As a result, many business departments experience high levels of turnover. Faculty in other departments need to help integrate business faculty into the ongoing activities of the college. On the other hand, business faculty need to be proactive in becoming an integral part of the college. They should find out what is taught in the other departments and try to integrate these ideas into their courses. They should be very active on the various committees of the college. They often represent most of the student body and these students need to have their interests represented when the college makes decisions. Many faculty do not realize that the origin of the original courses in the liberal arts was to provide 12 professional training for those who sought careers in the church and the government. In much the same way, today's business programs provide that same type of preparation for business, government, and not-for-profits. That is why business is called the applied liberal arts. Because most of the business functional-area courses are based on principles developed in other disciplines, business faculty at church-related colleges need to integrate the general education course materials into business offerings and should also want to help the other departments integrate principles of business into their offerings. Perhaps the major competitive advantage of a church-related college is the effective integration of the Christian religion, the liberal arts, and the professional programs. The public institutions cannot provide this type of offering. Business faculty need to be especially proactive to see that their courses reflect the principles of the church-related college courses. Too often functional-area business courses are taught from an amoral point of view. While it is important to provide students with the functional tools of business, it is as important to show them how these tools should be used in an ethical business environment. There is also a need for a specific journal that would examine business ethics from a Christian point of view. The current business journals do not seem to offer this perspective. Such a journal, sponsored by a church-related 13 college or group of colleges, would provide an intellectual forum for the discussion of Christian business ethics. Much of what we see in the media today often dwells on an anti-Christian or anti-religious theme. This journal would take a positive view of the role of religion in the business world. It also would provide a scholarly publication for the work of business faculty who wish to apply their beliefs to their research. This journal could address business ethical issues from the perspective of several disciplines. This would encourage cooperative research and writing between business faculty and faculty from other disciplines at a church-related college. CONCLUSION The church-related college holds a special place in our educational system. Most of the earliest and best of institutions came from this heritage. Many still have strong ties to their founding churches. Business faculty and the departments of business in these colleges have a special role in preserving and promoting business education that continues this heritage. In a land founded on religious freedom, the freedom to approach business ethics and business education from a religious point of view is essential. With freedom comes responsibility. It is also the responsibility of business faculty to support and encourage the application of values held by the church-related college. Church-related business departments have a special responsibility to transform what is often 14 amoral business education into moral business education. In this way they support the major role of church-related colleges: providing students with an integrated Christian-based education. References Anderson, William, "Atlanta Can Be the Birthplace for a Renewal of Values," The Atlanta Journal and Constitution, February 11, 1990, pg. D1. Austin, Kevin, "For Young Baby Boomers, Deeper Faith," The Atlanta Journal and Constitution, March 3, 1990, pg. B9. Bahm, Archie, "Teaching Ethics Without Ethics to Teach," Journal of Business Ethics 1 (1982), 43-47. Bellah, Robert N. et al., Habits of the Heart: Individualism and Commitment in American Life (New York: Harper & Row Publishers, 1985). Boehlman, Herbert, et al., The Legal Environment of Business (St. Paul: West Publishing Company, 1989. Cavanagh, Gerald F., American Business Values (Englewood Cliffs, NJ: Prentice-Hall, NJ, 1984). Cavanagh, Gerald F. and McGovern, Arthur F., Ethical Dilemmas in the Modern Corporation (Englewood Cliffs, NJ: Prentice-Hall, 1988). De George, Richard T., "Replies and Reflections on 15 Theology and Business Ethics," Journal of Business Ethics 5 (1986), 521-4. De George, Richard T., "The Decline & Fall of Business Ethics," Fortune, December 8, 1986, pg. 65. Ludington, David M., "The Decline in America's Ethical Values: How Does Public Education Transfer the Values of a Judeo-Christian Nation with Separation of Church and State?" National Conference on Ethics in America, Long Beach, CA, January 10-12, 1990. 16