Skip to main content
Log in

Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Students

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Ethics instructors often use cases to help students understand ethics within a corporate context, but we need to know more about the impact a case-based pedagogy has on students’ ability to make ethical decisions. We used a pre- and post-test methodology to assess the effect of using cases to teach ethics in a finance course. We also wanted to determine whether recent corporate ethics scandals might have impacted students’ perceptions of the importance and prevalence of ethics in business, so we used in-depth case studies of several of the major scandals (e.g., Enron, Tyco, Adelphia). Our results are somewhat surprising since studying ethics scandals positively impacts students’ ethical decision making and their perceptions of the ethics of businesspeople.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • M. M. Ahmed K. Chung J. W. Eichenseher (2003) ArticleTitle‘Business Students’ Perception of Ethics and Moral Judgment: A Cross-Cultural Study’ Journal of Business Ethics 43 89–102 Occurrence Handle10.1023/A:1022915316112

    Article  Google Scholar 

  • James Ang (1993) ArticleTitle‘On Financial Ethics’ Financial Management 22 IssueID3 32–60

    Google Scholar 

  • Baucus, S. Melissa and L. Paula Rechner: 1995, ‘Framing and Reframing: A Process Model of Ethical Decision Making’, International Association of Business and Society Proceedings, 2–7.

  • R. C. Baumhart (1961) ArticleTitle‘How Ethical Are Businessmen?’ Harvard Business Review 39 IssueID4 6–25

    Google Scholar 

  • S. C. Borkowski Y. J. Ugras (1992) ArticleTitle‘The Ethical Attitudes of Students as a Function of Age, Sex, and Experience’ Journal of Business Ethics 11 63–69 Occurrence Handle10.1007/BF00871962

    Article  Google Scholar 

  • Brenner, S. N. and E. A. Molander: 1977, ‘Is the Ethics of Business Changing?’, Harvard Business Review, January/February, 57–71.

  • R. T. Byerly D. Dave B. D. Medlin (2002) ArticleTitle‘Ethics in Business Program Curricula: An Empirical Investigation of the Attitudes and Perceptions of United States Students’ International Journal of Management 19 IssueID2 357–365

    Google Scholar 

  • B. C. Cole D. L. Smith (1996) ArticleTitle‘Perceptions of Business Ethics: Students vs. Business People’ Journal of Business Ethics 15, 889–896 Occurrence Handle10.1007/BF00381856

    Article  Google Scholar 

  • B. C. Cole D. L. Smith (1995) ArticleTitle‘Effects of Ethics Instruction on the Ethical Perceptions of College Business Students’ Journal of Education for Business 70 IssueID6 351–357

    Google Scholar 

  • J. R. DesJardins E. Diedrich (2003) ArticleTitle‘Learning What It Really Costs: Teaching Business Ethics With Life-Cycle Case Studies’ Journal of Business Ethics 48 33–42 Occurrence Handle10.1023/B:BUSI.0000004365.29526.c9

    Article  Google Scholar 

  • Feldman, H. D. and R. C. Thompson: 1990, ‘Teaching Business Ethics: A Challenge for Business Educations in the 1990s’, Journal of Marketing Education , Summer, 10–22.

  • R. Ford W. Richardson (1994) ArticleTitle‘Ethical Decision Making: A Review of the Empirical Literature’ Journal of Business Ethics 13 205–221 Occurrence Handle10.1007/BF02074820

    Article  Google Scholar 

  • K. S. Froelich J. L. Kottke (1991) ArticleTitle‘Measuring Individual Beliefs About Organizational Ethics’ Educational and Psychological Measurement 51 377–383

    Google Scholar 

  • J. Gandz N. Hayes (1988) ArticleTitle‘Teaching Business Ethics’ Journal of Business Ethics 7 657–669 Occurrence Handle10.1007/BF00382975

    Article  Google Scholar 

  • R. J. George (1987) ArticleTitle‘Teaching Business Ethics: Is There a Gap Between Rhetoric and Reality?’ Journal of Business Ethics 6 513–518

    Google Scholar 

  • C. Gilligan (1982) In a Different Voice: Psychological Theory and Women’s Development Harvard University Press Cambridge, MA

    Google Scholar 

  • S. Green J. Weber (1997) ArticleTitle‘Influencing Ethical Development: Exposing Students to the AICPA Code of Conduct’ Journal of Business Ethics 16 777–790 Occurrence Handle10.1023/A:1017987609769

    Article  Google Scholar 

  • Hess, D. W. and C. S. Norman: 2004, ‘Teaching Ethics in Investment Classes: A Series of Vignettes’, Journal of Financial Education, (Spring), 41–60.

  • E. E. Jones R. E. Nisbett (1971) The Actor and the Observer: Divergent Perceptions of the Causes of Behavior General Learning Press Morristown, NJ

    Google Scholar 

  • L. Kohlberg (1981) Essays in Moral Development, Volume I: The Philosophy of Moral Development Harper and Row New York

    Google Scholar 

  • L. Kohlberg (1984) Essays in Moral Development, Volume II: The Philosophy of Moral Development Harper and Row New York

    Google Scholar 

  • K. Kumar C. Borycki S. A. Nonis C. Yauger (1991) ArticleTitle‘The Strategic Decision Framework: Effect on Students’ Business Ethics’ Journal of Education for Business 67 74–79

    Google Scholar 

  • H. Q. Langenderfer J. W. Rockness (1989) ArticleTitle‘Integrating Ethics into the Accounting Curriculum: Issues, Problems, and Solutions’ Issues in Accounting Education 4 58–69

    Google Scholar 

  • H. K. Luthar R. A. DiBattista T. Gautschi (1997) ArticleTitle‘Perception of What the Ethical Climate Is and What It Should Be: The Role of Gender, Academic Status, and Ethical Education’ Journal of Business Ethics 16 205–217 Occurrence Handle10.1023/A:1017980520924

    Article  Google Scholar 

  • Manley, G. G., C. J. Russell and M. R. Buckley: 2001, ‘Self-Enhancing in Perceptions of Behaving Unethically ’, Journal of Education for Business, (September/October), 21–27.

  • D. L. Mathison (1988) ArticleTitle‘Business Ethics Cases and Decision Models: A Call for Relevancy in the Classroom’ Journal of Business Ethics 7 777–782 Occurrence Handle10.1007/BF00411025

    Article  Google Scholar 

  • D. L. McCabe J. M. Dukerich J. E. Dutton (1991) ArticleTitle‘Context, Values and Moral Dilemmas: Comparing the Choices of Business and Law School Students’ Journal of Business Ethics 10 951–960 Occurrence Handle10.1007/BF00383799

    Article  Google Scholar 

  • D. L. McCabe J. M. Dukerich J. E. Dutton (1994) ArticleTitle‘The Effects of Professional Education on Values and the Resolution of Ethical Dilemmas: Business School vs. Law School Students’ Journal of Business Ethics 13 693–700 Occurrence Handle10.1007/BF00881328

    Article  Google Scholar 

  • F. Parsa W. M. Lankford (1999) ArticleTitle‘Students’ View of Business Ethics: An Analysis’ Journal of Applied Social Psychology 29 IssueID5 1045–1057

    Google Scholar 

  • J. Rest (1986) Moral Development: Advances in Research and Theory Praeger New York

    Google Scholar 

  • J. C. Roderick H. M. Jelley J. R. Cook K. A. Forcht (1991) ArticleTitle‘The Issue of White Collar Crime for Collegiate Schools of Business’ Journal of Education for Business 66 287–290

    Google Scholar 

  • A. Schlaefli J. R. Rest S. J. Thoma (1985) ArticleTitle‘Does Moral Education Improve Moral Judgment? A Meta-Analysis of Intervention Studies Using the Defining Issues Test’ Review of Educational Research 55 319–352

    Google Scholar 

  • J. R. Shannon R. L. Berl (1997) ArticleTitle‘Are We Teaching Ethics in Marketing?: A Survey of Students’ Attitudes and Perceptions’ Journal of Business Ethics 16 1059–1075 Occurrence Handle10.1023/A:1017922005651

    Article  Google Scholar 

  • V. K. Strong A. N. Hoffman (1990) ArticleTitle‘There is Relevance in the Classroom: Analysis of Present Methods of Teaching Business Ethics’ Journal of Business Ethics 9 603–607 Occurrence Handle10.1007/BF00383216

    Article  Google Scholar 

  • Thoma, S. J.: 1985, ‘On Improving the Relationship Between Moral Judgment and External Criteria: The Utilizer/Non-untilizer Dimension’, unpublished dissertation, University of Minnesota.

  • K. E. Waerneryd K. Westlund (1993) ArticleTitle‘Ethics and Economic Affairs in the World of Finance’ Journal of Economic Psychology 14 523–539

    Google Scholar 

  • R. E. Welton R. M. Lagrone J. R. Davis (1994) ArticleTitle‘Promoting the Moral Development of Accounting Graduate Students: An Instructional Design and Assessment’ Accounting Education 3 35–50

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Julie A. B. Cagle.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Cagle, J.A.B., Baucus, M.S. Case Studies of Ethics Scandals: Effects on Ethical Perceptions of Finance Students. J Bus Ethics 64, 213–229 (2006). https://doi.org/10.1007/s10551-005-8503-5

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-005-8503-5

Keywords

Navigation