Summer/Fall 2009 — Vol. 62, No. 3

Financial management student Kelsey Sontag (left) and accounting graduate student Kathryn Cole ’08

by Kelsey Sontag ’10

Clemson finance students explore the blurred boundaries between profit-making and ethical behavior in business.

With the recent economic downturn and the fact that some of the responsibility falls onto the shoulders of the once-roaring financial institutions, the areas of finance and ethics have been on everyone’s mind.

Few would argue that ethical misconduct in banking and business has been among the catalysts for this economic crisis that our country is currently experiencing.

But the news is not all bad. For finance students, the recession has offered an amazing opportunity to experience and learn about the causes and cures for recessions as well as the importance of adhering to business ethics.

The international spotlight on business ethics also highlights Clemson’s approach to exploring ethics with students, faculty and community, a part of the Clemson experience that sets our university apart from others.

As a rising senior in financial management, I have experienced Clemson’s commitment firsthand.

The teaching of business ethics plays a major role in the study of finance here. Classes include case studies, discussions and other forums concerning the importance of upholding both personal and professional integrity.

‘Shock marketing’

I’ve also had the opportunity to expand my knowledge and experience as a member of the University’s nationally recognized Intercollegiate Ethics Bowl team. (We call it the “Orange Wave” to show our energy and Clemson pride!)

Being on the team offers members a way to apply ethical theories to solve real-life problems while competing for Clemson. The bowl works like a debate tournament that focuses on difficult issues in the form of cases for which we prepare theoretical support for the correct action. My perspective for the team is on business ethics and market economics.

One of my recent cases focused on the ethical justifiability of “shock marketing.”

Shock marketing often uses offensive material or grotesque images to get attention and thus boost sales. Case in point was a billboard advertisement for a clothing company that featured male clothing with the phrase: “Looking good sure beats rape.” The ad certainly got attention and probably increased sales and profits for stockholders. But responsibility — not causing harm or serious offense to the general public — was totally lacking.

On the other hand, ad campaigns against drunk driving often use shock marketing as well. And the American Journal of Preventive Medicine has shown that mass media campaigns can reduce alcohol-related car crashes significantly. Of course, this use isn’t for financial gain, but it does aim to get attention and change behavior.

Beyond ‘right’ or ‘wrong’

One of the biggest lessons I’ve learned is that, often, there’s no right or wrong answer to an ethical dilemma. Each perspective that you apply to the case at hand will produce a different course of action.

If you apply utilitarianism, the action will produce the greatest good for the greatest number of people with no regard for what is “right” or “wrong.” If you apply deontological ethics, which emphasizes moral intentions and motives, the action focuses almost completely on what is right or wrong.

And to make matters even more complex: The most ethical action for one person may not be the same for another. These discrepancies illustrate the difficulties that people in professional industries face in the pursuit of desired outcomes with integrity.

Ethics isn’t something we just “learn.” But through studying the different theories, deciding what’s appropriate for given situations and applying that knowledge in and out of the classroom, I have gained experience and confidence in analyzing complicated issues.

Clemson’s commitment to ethics has enhanced my ability to make those decisions — not only in my study of finance, but beyond the classroom. I feel I already have an edge in my chosen career and in my everyday life.

“Economic advance is not the same thing as human progress.” — John Clapham, economic historian

For all students Clemson’s Robert J. Rutland Institute for Ethics serves students, faculty, staff and the community. Its Ethics Across the Curriculum program teaches students in all majors — whether they plan to be architects, teachers, medical professionals, engineers, biologists, managers, marketing or finance specialists — how to incorporate ethical values in rewarding careers and personal development.  Clemson’s Intercollegiate Ethics Bowl team, sponsored by the Rutland Ethics Institute, is a national powerhouse. Over the past three years, the team has won first, second or third in the nation at the Ethics Bowl Championships. The Rutland Institute is home to the national Center for Academic Integrity, a consortium of more than 360 educational institutions who share with peers and colleagues the center’s collective experience, expertise and creative energy. To learn more about Clemson’s ethics programs, go to www.clemson.edu/ethics.

Financial management student Kelsey Sontag, the author of this piece, has received Bank of America, Trustee, Class of ’38 and other scholarships. Scholarship support makes the Clemson experience possible for her and many other students. To learn how you can help, go to Giving at Clemson.