A study on the interpretation of an article entitled
“Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Studies”
1. Letter of transmittal
Dear Professor Dilip Kumar Sen，
I have the honor to present to you my study on the interpretation of an article entitled “Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Studies” as partial fulfillment of the Management Accounting course requirement.
I finish this report independently. And I hope this report will prove to be satisfactory.
2. Executive summary
Compared with others subjects like marketing or accounting, finance journal and text books are ...view middle of the document...
4. Main issue
Whether integrating ethics into a finance course could affect students’ ethics.
5. Theme of the study
6. Analysis and interpretation
6.1 Professors Julie A.B. Cagle and Melissa S. Baucus’ research
Compared with others subjects like marketing or accounting, finance journal and text books are more silent on the topic of “ethics”. The fact that business schools shift from a stand-alone business and society curse to integrating ethics into course across the entire business curriculum made the effect of teaching ethics in finance more critical. At the same time, researches have different opinions on the compatibility of ethics education with firm’s objective of shareholder wealth maximization. One previous study shows that case study combined with lectures is the most practical way of blending ethics instruction into the course. The study made by Julie A.B. Cagle and Melissa S. Baucus, professors of Xavier University, support the discovery in the discipline of finance.
Based on the literature review which shows the important role of individual characteristics responding to major ethical scandals, the authors developed the following hypothesis:
1. Female students will be less willing to accept unethical of questionable behavior than mal students
2. Older students will be less willing to accept unethical or questionable behavior than younger students.
3. Undergraduate students will be less willing to accept unethical or questionable behavior that MBA students.
4. In-depth case studies of ethics scandals will positively affect students’ ethical perceptions, making the students less willing to tolerate unethical or questionable behaviors.
54 undergraduate with the average age of 25 and 32 MBA students with the average age of 29 at a private Jesuit university are chosen as sample. In the survey, the students are asked to respond to ten situations in two ways, as they believe a typical businessperson would respond, and what they believed to be the ethical response.
This is the process of the study:
The analysis tool is regression model.
The result of the study show that students’ ethical standards changed after the case study and the case study experience changed student’s perceptions of business ethics.
Professors Julie A.B. Cagle and Melissa S. Baucus’ study does show the change of students’ attitude after making case studies of financial scandals. But can these 86 students from the same American university represent all the finance students or business students all over the world? Can business ethic really be taught?
While I agree there needs to be a focus on ethics in business schools, I believe classroom training is not an indicator of behavioral change.
I believe a combination of formal classroom training must be accompanied by in-situation training when graduates enter the world of business. The organizations they work for must reinforce their...