What Are the Root Causes for Corporate Unethical Behavior, Do Colleges and Universities Have a Role?

• In Event: Managerial Accounting 1
  In Paper Session: Managerial Accounting / Behavioral Issues

Abstract

There has been an explosion of interest in ethical behavior. This attention has been the result of the continuous notoriety of the corporate, community, and educational misdeeds. As a result, this trend has called for increased organization governance and accountability (Rezaee, Elmore, and Szendi March 2001). This interest has been fueled by the wrongdoings at Enron, WorldCom, Martha Stewart, Tyco, Citigroup, Qwest, Arthur Andersen, Adlephia, and United Way to name a few. To mitigate these activities, an effort is underway at the higher education level to incorporate “ethics” into business school curriculum (Farnsworth and Kleiner 2003). State colleges and universities are being scrutinized because they are using public funds for their curriculum. Graduate programs are being revived; however, academic credibility is being damaged. Business schools are being held accountable for much that is wrong with corporate management today (Economist, 2005). Consequently, the public, regulators, and the accounting profession want to hold these institutions accountable in light of the extensive exposure of corporate misdeeds (Swanson and Frederick Spring 2003 and Rezaee, Elmore, and Szendi March 2001). Some business schools speculate if they should also share the blame for these misfortunes (Economist, 2005; Nicklaus, November 2003; and Swanson, December 2002). The ethics coverage would ultimately lie with the individual school. Unfortunately, a student will not become instantaneously ethical with the taking of a three credit hour course. There has been a revival of business graduate programs after a somewhat weak four years (Economist, 2005). A review of the literature covering the national trend on organizational governance and accountability will be reviewed; coupled with the status of teaching business ethics in the classroom at the higher education level.

Author

• Joseph Riotto, New Jersey City University