I disagree with this. Not with the idea of admitting ethical people to business school, but with the practicality of making it a greater focus of admissions. First, we're talking about applicants who have only been in the workforce a few years. There's not a whole lot of evidence available from that time of whether people have demonstrated altruistic behavior, beyond the questions currently asked about teamwork, leadership and ethical dilemmas. Second, personal values and ethics is a real tenuous concept on which to base admissions decisions. There can be a lot of variety between person to person and culture to culture. And so who defines ethical? Would a hypothetical MBA who follows all applicable laws and regulations, but only cares about personal gain and maximizing profit be ethical? What about another hypothetical MBA who does a lot for the community, but is very bad at managing the business and destroys shareholder value (thereby neglecting their fiduciary duty to shareholders)?
I think it's just too subjective, and am not convinced that a greater focus on ethics in admissions will be any more effective at weeding out the bad apples.
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