Business Ethics in a Christian College
By Craig Hinnenkamp
Assistant Professor, Economics and Business

It's rare these days to see a tabloid that doesn't include a detailed description of some moral failing in a noted business leader. The increased focus upon greed and corruption in business suggests that the term "business ethics" may be an oxymoron. Is there actually an increase in greed and corruption in the business world, or are we just more aware because of media attention? Is it possible to be an ethical businessperson in the present system? And, closer to home, how should a private Christian college approach ethics in its business-management curriculum?

Before addressing this last question, it's important to understand that the environment in which business is conducted is substantially different today than it has been in decades past. This difference can be attributed to a variety of factors.

The organizational and business environment is substantially more complex today than ever before. Technological advances in the last two decades have caused organizational decision-making to move at light speed. Globalization has also presented today's managers with complexity they have never seen. Ultimately, this complexity is felt by managers who must deal with ever-increasing numbers of unstructured problems. Whereas problems faced by managers in the past were fairly easy to describe and technological solutions were the order of the day, today's managers are faced with problems that are very difficult to differentiate, let alone to fix in ways that worked in the past.

Ethical decision-making in this complex environment is also greatly influenced by the fact that the traditional institutions (family, church and school systems) responsible for imparting a sense of moral value in our society have experienced substantial change in the past 30-40 years. The picture of the "traditional family" in America is substantially different today than it was in the mid-20th century. Regardless of one's views about the current controversy surrounding family values, the change in family structure is unquestionable. Almost all of the major religious denominations in America are in decline. Many scholars and religious leaders attribute this to the increasing feeling among Americans that the church has lost relevance. And finally, the increasing emphasis on the separation of church and state has encouraged the institutionalization of ethical relativism in our school systems. Many writers suggest that the impact of these factors is evident in the attitudes of our nation's youth: Traditional ethics are irrelevant in a business world in which greed and self-centeredness are encouraged and an individual's sense of morality is largely dependent upon personal experience rather than upon defined moral principle. The result is that ethical decision-making is not consistent; it is entirely situational.

Another important question, which is beyond the scope of this article, centers around the discussion of ethics and the current stockholder-model in business. The primary purpose of business under this model is to make money -- to maximize the return for investors. Some writers have argued that this is the only moral responsibility of the business leader. With the tremendous pressures put upon business leaders to focus on profitability, is it really possible to compete and succeed in today's business environment as a moral businessperson?

As we address the current moral climate in business and in our society, what should be the focus of business-ethics training at a Christian college such as Whitworth? Based upon the previous discussion, there are three areas of importance:

1. Ethics curriculum should certainly emphasize decision-making skills. The use of integrated decision-making models that incorporate the strengths of the various ethical theories should be used in the analysis of relevant contemporary business case studies. Students need to be able to recognize moral issues (executive compensation and principles of distributive justice, for example) and to apply appropriate ethical theory.
   
   
2. Students need to be aware of the inherent conflicts that arise from the clash between ethical paradigms. For example, the utilitarian who sees a variety of questionable means as justifiable as long as favorable outcomes result will often be at odds with an individual who operates from a principle- or virtue-based perspective. Successful managers have the skill to recognize the nature of these conflicts and to manage them accordingly.
   
   
3. Students must develop a well-defined and -articulated sense of their personal ethic. The fundamental question of "How do I know the difference between right and wrong?" should be explored continually and should be refined during ethics training with the understanding that "In a complex world, it may be very difficult to determine which way to go if you do not know where you currently stand." And, finally, business students must struggle with the fundamental question, "Accumulation of wealth to what end?" If the generation of wealth is used for the greater good of society, then one can approach business from a moral perspective. If the purpose of business is to maximize profit solely to accumulate wealth, then we will continue to read each day about our business leaders' moral failings.

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