Business Ethics
Ethics is about right and wrong thing and divert people to do the right things. Business ethics is applied ethics discipline that address the moral features of commercial activity.  (Stanford Encyclopedia of Philosyphy, 2013). It means right or wrong in the workplace and do the right thing.
Employees’ misconduct has cost more than $400 billion a year in American companies. In 2003, nearly 60% reported huge loss caused by employee fraud and misconduct and it situation was worsen (Richardson, 2005-2005:41). In 2008 financial crisis, it unfolded the unethical behaviors of many financial institutes. These unethical behaviors created a chain effect of falling of giant companies in US e.g. AIG etc. which consequence in a global financial tsunami. This incident increased the corporates’ and government’s awareness of the corporate governance. Government introduced additional rules and regulations to govern the corporate behavior to become more ethical. Stakeholders now see boards as more accountable for the effectiveness of their overall governance process (Delotte, 2013). Many companies formulated more comprehensive internal policies to pertain the ethical conduct of the employees. Ethical behavior in the competency model, widely used in the commercial world (Effron et al, 2005), is further strengthen for every employee.
Corporate integrity becomes the highest priority in the business world especially after the financial crisis in 2008. Employees are required to generate profit in ethical approach.
Ethics education
In the past years, management education was focus on the knowledge or maybe skills. The curriculum covered theories and research only. Nowadays, management education aims to prepare and equip their students with required knowledge, skills and attitudes for being potential leaders and managers. Good management education is able to train the student for managerial position in corporations. In order to fully equip the students to sustain the business responsibilities, the content and context of the business education must align with the ever changing and evolving business would. Management schools are required to work closely with industries and corporation to maintain the quality of education (Gupta, 2011). To be a competitive management school for the top students, they need to regularly review their curriculum and bring necessary change according to the needs of the corporation and environment.
After financial crisis in 2008, public awareness of corporate integrity was highly increased.  Training on employees’ ethical behavior are largely demanded. As today’s students are future leaders or manager in business world. The change of business practice put a pressure on the management school redesign the curriculum in ethical development of their students.
According to the research conducted by Callahan (2004), ‘students have dishonest behavior in class are more likely to have dishonest behavior in workplace’. Student engaged in unethical behavior such as classroom cheating and plagiarism are more likely to have unethical behavior in business world. Research suggested that ethics education can increase students’ ethical awareness (Balotsky. and Steingrad, 2006). It also showed that ethical education in MBA programme increase students’ ethical awareness and the use of skills for moral reflections and decision making (Hoivik, 2004). A good ethical education can help students to understand ethical implication of corporate decisions. Apart from foundation training, other initiatives are high suggested, e.g. guest talk to provide a holistic approach for the students (Kolb et al, 2005). Ethics education should be started early from University and became of mandatory modules for management education. Apart from teaching technical skills, ethical education became University-wide topics provided by management schools.
“Company fosters a trusting culture will have an advantage in the war of talent” (Hurley, 2006). This is also applied to management schools. If corporate trust the management school, their students will have advantage being selected over the students from the other management schools. For example, Harvard Business School is recognized as world class schools all over the world. Management schools tried to build trust to the corporate that their students are being trained to behave ethically.
Persuasion
The management school are required to persuade the employer that their students are educated with business ethics and behave ethically. There are six fundamental principles of persuasion (Cialdini, 2001) and management schools are using them. The six fundamental principles are:
1. Liking
2. Reciprocity
3. Social Proof
4. Consistency
5. Authority
6. Scarcity
The Universities use Liking, Consistency, Authority and Scarcity for persuasion.
1. Liking
The principle of liking is people like those who like them. By uncovering real similarities and offering genuine praise (Cialdini, 2001) can create “liking”. Recognized Universities over the world has set up independent department or office responsible for the corporate governance which is similar to corporate. Each university will have their own code conduct and disciplinary procedure to guide the behaviours of students e.g. Student Discipline Committee (“SDS”) in The City University of Hong Kong. The SDS will be responsible for Code of Student Conduct. The Code of Student Conduct aims to set the University’s expectation of all students with regard to their personal conduct, behavior and etiquette (CityU, 2014). This structure is similar to large corporate structure, usually a Compliance and Independence Department is set up responsible for the Code of Conduct for the employees.

2. Consistency
The principle of consistency is people align with their clear commitments (Cialdini, 2001). By making their commitment active, public and voluntary (Cialdini, 2001) can create “Consistency”. Universities post their Code of Student Conduct, Guidelines and Discipline Process in their university website and it is opened for public’s review. The transparency attitude shows the University’s commitment to ensure their students are ethical. Also, many University mandated ethics education in form of elearning or classroom training for all management students. For professional students e.g. accounting and leadership programme e.g. MBA, business ethics became one of the mandatory modules.
3. Authority
The principle of authority is people defer to experts (Cialdini, 2001). By exposing the expertise can create “Authority” (Cialdini, 2001). To persuade the corporate to recognize the ethical education in University, the committee responsible for the students’ ethical behavior are constituted of members who are in the high position of the University. It showed that the University take the ethical education seriously with high power. It can convince the corporate the University take a stringent policy to bind their students on the ethical behaviors.
4. Scarcity
The principle of scarcity is people want more of what they can have less of (Cialdini, 2001). By highlighting unique benefits and exclusive information can create “Scarcity” (Cialdini, 2001). Corporate wishes management students are trained with ethical behaviors to minimize their resources and effort for internal training. So ethical education embedded in management curriculum. For accounting students, there is usually an ethical studies which can claim exemption for applying the CPA accreditation. 
Collaboration between management schools and corporations in ethics education
It is important that corporation recognize the ethical education and trust the effectiveness of the management school in teaching students’ moral and ethical behaviors. To achieve this, collaboration between Industry and Management schools is required. “Collaboration is about bringing ideas together, about sharing perspectives and insights and effort, for the purpose of getting useful thing done.” (Tapscott et al, 2009).
It is showed there are many strategic partnership between corporations and management school to increase the value add to the distribution role in the industry (Paul et al, 2003). However, there is limited research showing the strategic partnership between corporations and management school on ethics education.
Pedagogies were investigated on the ethical education (Wenkel and Stachowicz, 2011). To help students to apply the ethical principles to business situation. Some schools invited guest speakers e.g. business managers (Beggs et al, 2006), religious leaders (Henle,2006) to class.
The future of ethics education
Corporate integrity become more and more important and ethical business can create valuable effect in long term. To maintain ethics business, we need ethical leaders and employees. Ethics education can help management students to understand ethical implication of corporate decisions. It becomes a mandatory subject for management school students. However, the collaboration between the corporation and management schools on ethics education is limited. Only guest speakers for talk or companies’ case studies as business stimulation are used in classroom.
Input from corporation to management schools is current collaboration model of ethics education. I believe the model will change and more input from management schools to corporation will increase in the future.  Corporate ethics programmes will help employees understand the compliance rules and regulations. In long term, when the environment become more complex, input from management schools of market best practice is expected. To cater the increase in demand of ethics education, collaboration between the consulting firm and management schools on the business ethics researches and development of education programme is needed.

 
Reference
1. The City University of Hong Kong (2014). www.cityu.edu.hk
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4. Callahan, D. (2004) The cheating culture: Why more Americans are doing wrong to get ahead, Orlanda:Harcourt
5. Cialdini, Robert B. (2001) Harnessing the science of persuasion, Harvard Business Review, 79(9)
6. Delotte (2013) Developing effective governance operating model: A guide for financial services boards and management teams.
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