Question

CASE 6 Using Ex-Cons to Teach Business business school with a master's degree, worked as a Ethics at MCL devised a 56 million money launderin home and served two years in federal prison. AL After the Enron scandal and he was the way he became divorced and unemployed, and Tyon, and Adelphia debacles that wed a couple of to move back in with his parents. As Busw. We years later, the business ethics industry really started to reported, it was a story that should care any MBA take of Business ethics coming and training became a booming field of expertise and the business schools Walt Pavlo, the convicted white collar criminal that had not yet started teaching business ethics quickly been called by ABC News the "Visiting Fellow created new courses to take advantage of the Fraud" for his appearances on many campuses. At an energized topic. Business schools that had ethics courses appearance for a business school lecture. Pavlo dai already in their curricula ramped up the number of he was once a God-fearing student who played hand offerings per year and started looking for innate and straight. He told ABC's Nightline that he was and interesting ways to attract students to the courses taught the catechism and Ten Commandments as The early wave of ethics scandals brought about two child and was taught not to steal, cheat, or curse. He major events that became driving forces in corporate was taught to be honest and truthful in all that he did and educational change. First, the Same Ole ActU pon completion of his MBA, he got a position at was passed by Congress in 2002. SOX elevated the MCL the communications giant, and started working interest in and incentives for stronger financial controls in the collections department. He became very compet and compliance, and this led to related initiatives in the itive and began fretting that the next guy might be realm of business ethics. Second, the Federal Sentenc outperforming him, so he ratcheted up his efforts.? ing Guidelines were revised in 2004. The U.S. Sentenc Pavlo eventually became a senior manager at MCI ing Commission revised its guidelines and created a He was responsible for the billing and collection of new ruling that rewarded companies for developing almost $1 billion in monthly revenue for MCI's car ethics programs and offering ethics training. The Com rier finance division. He had a meritorious employ mission passed a ruling that among the different fac ment history. In March 1996, Pavlo, a member of his tors to be taken into consideration when a company staff, and an outside business associate began to carry was accused of wrongdoing was whether or not com- out a fraud involving several of MCI's customers. pany management had provided ethics training for its When completed, the scheme had involved seven cus employees. If the company had not offered ethics train tomers who were defrauded of $6 million over a six- ing as part of an ethics program, the company could be month period. The money was stashed away in a more severely disciplined than if it had offered its Grand Cayman bank account. employees such training In explaining his going astray, Pavlo detailed how On both the business school and corporate fronts as much pressure he had been under and how he was a result, the demand for ethics training and education having a difficult time meeting the targets and goals quickly grew in importance. In partial response to this that had been set for him. He told a colleague about new demand, a new category of ethics education arrived his struggle, and the colleague said that everybody on the scene the use of ex-cons to teach business ethics was cheating" because that's the way you make it mia presentations in business schools and companies. This became a pivotal moment in Pavlo's life, he reported, and that started him down the path to VALT PAVLO: AN EARLY CASE STUDY white collar crime. After stealing the $6 million, he alter A. Pavlo, Jr., had achieved many things by the began to live according to his newfound means-an me he was 40 years old. He had graduated from expensive new car, hand-tailored Italian suits, and fre- quent holidays often to the Cayman Islands. Six months into the fraud, auditors at MCI realized is case was prepared by Archie B. Carroll, University of what he was doing and he was forced to resign. He rgia, using public sources. Updated in 2016 by Jill A. wn, Bentley University thought the company would just write off the loss as

Answer 1

1.          ETHICAL ISSUES

THE ETHICAL ISSUES IN THIS CASE ARE THAT BUSINESS SCHOOLS AND CORPORATIONS WERE FOUND TO REQUIRE MORE ETHICS TRAINING RESOURCES DUE TO A NUMBER OF LARGE SCANDALS WERE BOOMING INTO PUBLIC EYE.

2. ADVANTAGES AND DISADVANTAGES

THERE ARE ADVANTAGES AND DISADVANTAGES TO CHOOSING TO HIRE AN EX CON TO SPEAK TO COLLEGE STUDENTS ON THE SUBJECT OF BUSINESS ETHICS. ONE ADVANTAGE TO IT WOULD BE THAT TYPICALLY WISDOM DERIVES FROM EXPERIENCE . TO TRULY UNDERSTAND SOMETHING , ONE MUST EXPERIENCE IT.SOMEONE WHO HAS EXPERIENCED VIOLATING BUSINESS ETHICS FIRST HAD AND PAID THE PROPER PENALITY IS NOT LIKELY TO MAKE SAME MISTAKE. ANOTHER ADVANTAGE FOR THE EX CON SPEAKING IS IT'S PROBABLY ONE OF THE FEW SECOND CHANCES THAT THEY MAY EVER GET OUT OF LIFE AGAIN AND WHO DOESN'T DESERVE A SECOND CHANCE.

A DISADVANTAGE OF EX CON SPEAKING ON ETHICS TO COLLEGE STUDENT IS THE SIMPLE MADE THAT IT REPRESENTS. IT COULD ALSO DAMAGING THE REPUTATION OF THE COLLEGE TO SOME. IT COULD ALSO BE OFFENSIVE TO SOME STUDENTS AND POSSIBLY CHANGE THEIR OPINION OF THAT SCHOOL.

3. I THINK I CANNOT LEARN FROM AN EX CON SPEAKING ON BUSINESS ETHICS.

4. I THINK IT IS WRONG TO PAY EX CONS TO SPEAK ON THEIR ILLICIT MOTIVES AND ACTIVITIES.