In each issue of the American Journal of Business, a book review is crafted to motivate and give journal readers a chance to preview laudable ideas. Often, popular press books reinforce concepts from the classroom. We have found at Western Michigan University that MBA students benefit from a summer course in which they read ten books from a suggested list and write in‐depth application papers related to the content. The course is rotated between departments to emphasize a variety of subject matter. In final course summary reports, students indicate the rigor of the requirements and the overwhelming value of expanding their knowledge and forming new associations.
To maintain their ongoing desire to stay abreast, the MBA alums hold book club sessions. Recently, WMU MBA alum, Carrie McDonald Swift, recommended a book for the business reading list. In light of the financial crises, she had made the connection that the lack of education on ethics in the early 1990's business classes might have been a major contributing factor. “My generation, myself included, has some penance to pay for our ‘Gordon Gekko’ approach to business”. Shortly thereafter she read The MBA Oath: Setting a Higher Standard for Business Leaders. The book's depiction of the same themes struck a resonating cord. In particular a quote articulated what she had been feeling for quite some time:
If moral leadership and moral self‐examination are not taught in business school, we might as well strike our colors and abandon ship. Theodore Roosevelt stated that to educate a person in mind and not in morals is to educate a menace to society (p. 27).
In an effort to address the MBA profession's severe reputational problem, Harvard's Class of '09, with professors Rakesh Khurana and Nitin Nohria, drafted a pledge modeled on the Hippocratic and other professional oaths. The authors and founding members, Anderson and Escher, make a pragmatic and convincing argument for establishing an oath. They explore questions of ethics and professionalism in the business world and guide the reader through a moral inventory of what is necessary to make sound business decisions.
This book not only gives sound advice and wisdom, it is also a good read with some interesting stories about business leaders who made the right decisions as well as those who made the wrong ones. The authors argue for a new business paradigm where shareholder value is not simply measured in the last quarter's earnings but in long‐term sustainable growth. Maximizing profits is extraordinarily important but should not be the only goal of a business. Decisions cannot be made in a vacuum without regard to their consequences. The MBA oath provides a mechanism that can provide an ethical floor during times when management decisions are gray.
The oath reminds us to safeguard the interests of shareholders, coworkers, customers and the society. Leaders must vigorously pursue their duty to shareholders while working to satisfy claims of the other stakeholders. In a global climate, there has been a call for “conscientious marketing” – a concept that underscores significant societal impact and development as primary goals in driving marketing strategies that are ethical and maximize long‐term stakeholder and customer value (Quraeshi et al., 2010).
It is easy to dismiss the idea of an oath of conduct for managers. How will taking an oath overcome long standing morals? If, by the time you are in college you need to make an oath to be honest, it may be too late. Doctors, politicians and countless married couples take oaths, yet, some renege. Once taken, will those who have promised be tempted by other circumstances to deviate from their original intentions?
The oath is not designed to change the public perception about MBAs. The pledge is also not intended to be a one‐time experience to fulfill a simple “check‐the‐box” response but instead is proposed to be part of a long‐term personal commitment. It is a call for change in the way we do business and how we see the role of business in society. Whether or not an oath exists, the principles that guide ethical decision‐making are important. Spelling out tenets is an attempt to provide a framework for making choices and to provide ways to remain accountable and keep each other accountable. By becoming publicly answerable, the odds are increased of following through on promises.
The authors suggest a benchmark for understanding the impact of actions with Warren Buffett's three pronged visibility test:
- 1.
Would I be comfortable if what I am doing showed up in the papers in the morning?
- 2.
Would I be comfortable if everyone in a similar situation was doing what I am doing?
- 3.
Is this how I would like my leadership legacy to be remembered? (p. 230)
If you can answer “yes” then you can feel comfortable with your plan of action.
The intent of this review is to stimulate discussion about ways to utilize oaths and other methods of improving ethics. Taking the oath by one's self will not be as effective as sharing it with others. The dialogue continues at the authors' website – www.MBAOath.org. They encourage formation of student chapters and provide an affiliate kit to establish formal programs.
Anyone interested in raising the bar for ethical standards in business should be downloading The MBA Oath to their Kindle. If even one MBA or business leader stops to think before proceeding in a decision that has negative ramifications, then the Oath will be worth consideration.
