Center for Ethical Leadership

Establishment Document
Center for Ethical Leadership
CollegeofBusinessAdministration
CaliforniaStateUniversity,LongBeach
January 15, 2005

Executive Overview
Center for Ethical Leadership 1
Executive Overview
The College of Business Administration is establishing a Center for
Ethical Leadership that seeks to be the preeminent center of thought
about applied ethics in leadership in business and the professions
among public comprehensive universities in the Western United
States. The Center will enable the College of Business Administration
and California State University, Long Beach to assist companies and
not-for-profit organizations in meeting the challenges of ethical
leadership, create new knowledge that will advance the practice of
ethical leadership, and produce graduates who are not only competent
professionals, but also honest and ethical citizens.
As an interdisciplinary organization, the Center will draw upon the
collective expertise of faculty and administrators not only from the
College of Business Administration, but also from the Division of
Student Services and, initially, from six departments in four other
academic colleges of California State University, Long Beach. Under
the guidance of a Governing Council, the Dean of the College of
Business Administration and a faculty member in the College will
serve as Co-Directors of the Center. A Managing Director will be
appointed to be responsible for the day-to-day operations and
management of the Center. The Center will require an annual
financial investment of about $200,000, which is envisioned to come
from endowment earnings and other forms of private-public
partnerships.
At California State University, Long Beach, the Center proposal was
endorsed by the College of Business Administration Faculty Council on
March 15, 2004, presented to the Executive Committee of the
Academic Senate on May 11, 2004, and presented to the Senior
Management Council on May 12, 2004.

Business Education at California State University, Long Beach
Section
1
Business Education at California State
University, Long Beach
California State University, Long Beach (CSULB) is the flagship
campus and the largest of the 23 campuses of the California State
University system. It is a comprehensive, four-year institution
established in 1949 by Assembly Bill 8, which was signed by Governor
Earl Warren on January 29, 1949, as the Los Angeles-Orange County
State College to serve the areas of Orange County and southeastern
Los Angeles County. In the “2005 Best American Colleges” ranking
published by US News & World Report, CSULB was ranked among
the top tier of over 500 comprehensive (master’s degree-granting)
universities in the 15 states comprising the Western region of the
United States, the top third among the 129 public comprehensive
universities in the West, the first in the West for graduates with the
least college debt load, the seventh in the West in terms of diversity in
the student population, and among the top ten in the West for student
selectivity.
The College of Business Administration (CBA) is one of the seven
colleges of CSULB. Business studies at CSULB date back to 1949,
when there were 24 business students and four faculty members, out
of a total of 160 students and 12 faculty members. By the mid-1960s,
the business school had close to 3,800 business students, 29 full-time
faculty members, and 13 part-time lecturers. Today, the College of
Business Administration is home to over 5,000 business majors,
including about 400 graduate students, and about 150 full-time and
part-time faculty members. The College hosts the largest student
population at CSU Long Beach.
Since its establishment, CBA has a long and distinguished history of
preparing its graduates to assume leadership roles in the world of
business. It would be hard to imagine an industry that has not been
shaped by our more than 40,000 graduates worldwide. The hallmarks
of a CBA business education—quality, rigor, and relevance—remain
constant over time. The Association to Advance Collegiate Schools of
Business (AACSB International) has accredited the College since 1971.

Business Education at California State University, Long Beach
Meeting the rigorous standards of the AACSB is a measure of a
business school’s quality of curriculum, faculty, facilities, and students.
Only 412 U.S. business schools are accredited by AACSB International
and only 267 business schools worldwide have accreditation at the
bachelor’s and master’s levels. The CBA is one of these elite schools.
The College is an excellent school, poised to become a preeminent
school that will prepare our students to meet the demands and define
the future of business in the 21st century. It is one of only two CSU
business schools among the 138 worldwide governing members of the
Graduate Management Admission Council, the international
standards-making body for MBA admissions, placement, and student
services. The College is the only CSU business school that has an
MBA alumnus among the CEOs of Fortune 200 corporations. Further,
the CBA is one of only three CSU business schools that Entrepreneur
magazine cited as among the top 50 regional programs for educating
entrepreneurs in the nation in 2003. In 2000, the College adopted as
its roadmap to performance excellence the Education Criteria for
Performance Excellence of the Malcolm Baldrige National Quality
Award, which is the country’s highest national award for quality and
business excellence. The only California business school to be
recognized with the California Prospector Award, based upon the
rigorous Baldrige criteria, the College of Business Administration is
ready to build on its commitment to quality, continuous improvement,
and academic excellence.

A Vision for Excellence
Section
2 A Vision for Excellence
The vision of the College of Business Administration is to become the
College of Choice for business students in Southern California by
providing a high quality learning and research environment that has a
global perspective and that contributes to regional economic
development. We seek to propel the College of Business
Administration at CSULB to become one of the nation’s truly great
business schools.
The College will serve students, businesses, and scholars as the
premier source of leading-edge ideas and academic programs that are
anchored in theory and that influence business practice. Achieving
this goal will mean that the very best and brightest students in
Southern California can remain in the region to find truly exceptional
opportunities in business education. Our business partners will find
the best student talent, the best ideas, and the best faculty—to serve
as executive educators, consultants, researchers, and practitioners—in
the region. To achieve this vision, we foster collaboration through
academic partnerships and insist on quality and operational
excellence.
Collaboration with business leaders and a demonstrated commitment
to quality and operational excellence will distinguish the College of
Business Administration from other nationally accredited business
schools in three areas of concentration: ethical leadership,
management of technology, and globalization.
Ethical Leadership
The College seeks to produce graduates who are not only competent in
their disciplines, but are also honest and ethical citizens. Through our
partnerships, we seek to incorporate business ethics and ethical
leadership in the business curriculum, as well as to promote faculty
research in business ethics and ethical leadership. A new Center for

A Vision for Excellence
Ethical Leadership will enhance our leadership in this field, bringing
together faculty, students, and business partners.
Management of Technology
Since the advent of the Information Age, the College has been at the
forefront of information technology education. Our instructional
facilities rank among the best in California business schools. The
Center for Information Strategies and Technologies is a leading center
in Southern California for research and community service in the area
of information technology. The College-based Journal of Electronic
Commerce Research is internationally ranked as a top-tier academic
journal in e-business. Through our partnerships, we will develop
educational strategies that will not only infuse the curriculum with
technology, but also create educational programs that will examine the
utilization and management of technology in tomorrow’s business
environment.
Globalization
Our international initiatives include exchanges with 15 leading
business schools in Asia and Europe, with a distinctive competence in
East and Southeast Asia. Our international relationships have two
thrusts. The first is to create study abroad opportunities for our
students in order to provide them with hands-on exposure to the
business, culture, and society overseas. The second is to enter into
articulation (“twinning”) agreements with feeder business schools
overseas to ensure smooth and effective transfer of qualified
international students into the College. A new Center for
International Business Education will orchestrate our global
initiatives to capitalize on our unequivocal commitment and our
geographic proximity to the Ports of Long Beach and Los Angeles.

Overview of the Center for Ethical Leadership
Section
3 Overview of the Center for Ethical Leadership
Vision
By the year 2010, the Center for Ethical Leadership in the College of
Business Administration at California State University, Long Beach
will be the preeminent center of thought about applied ethics in
leadership in business and the professions among public
comprehensive universities in the Western United States.
Mission
The Center for Ethical Leadership will promote ethical leadership in
our society through community service, university research, and
support of ethics across the curriculum.
Community Service
The Center will assist companies and not-for-profit organizations in
meeting the challenges of aligning effective business performance with
ethical business conduct. The Center will implement the College’s
Leadership Roundtable Program—a series of executive briefings and
faculty briefings supported by member contributions—and design and
deliver seminars on best practices for leaders in government, business,
and education. In the future, it will facilitate consulting engagements
by faculty for organizations that are struggling with leadership
challenges.
Research
The Center will financially support the creation of new knowledge that
will advance the practice of ethical leadership. The Center will
encourage faculty to conduct and facilitate research to advance the
theoretical foundation for ethical leadership. Studies will be pursued,

for example, in styles of leadership, how different organizational
environments impact leadership, and how leaders affect the ethical
quality of organizations. Research results will be disseminated
through the Center’s newsletter and an internet website as well as
through scholarly papers and presentations.
Education
The Center will enable the College of Business Administration and
cooperating colleges to produce graduates who are not only competent
professionals, but also honest and ethical citizens. In pursuit of its
educational mission, the Center will financially support the infusion of
ethics into the curriculum, the integration of community service in
existing undergraduate and graduate courses, and the development of
new graduate and undergraduate courses for students from all
disciplines in the area of ethical leadership. Through a Graduate
Fellowship in Ethical Leadership, the Center will support the MBA
education and research projects of graduate students who have the
demonstrated potential to be future business leaders. In the long
term, it will sponsor a Leader-in-Residence program to bring
outstanding leaders to the College and will organize an annual
California Leadership Academy to prepare student leaders from
around the state to meeting the challenges of ethical leadership in
business and the professions.
Rationale for the Center
The Center for Ethical Leadership is the College’s strategic response to
the ethics and governance crisis that has been occurring in U.S.
business and industry. Further impetus for the creation of the
proposed Center comes from AACSB International’s new accreditation
standards (adopted Summer 2003) that have a significant emphasis on
ethics. Capitalizing on the passage of the Sarbanes-Oxley Act of 2002
(H.R. 3763), an increasing number of business schools in the United
States are starting to develop formal programs, institutes, and centers
with a focus on business ethics and corporate governance.
The ethics and governance crisis was recognized by the State of
California when the California Legislature passed and Governor Davis

signed in September 2003, SB 821, “Business Ethics: Golden State
Business and Social Responsibility Award.” This legislation, which
has been incorporated into law as Chapter 5.5 in Part 40 of the
Education Code commencing with Section 66350, requires the
California State University and the California Community College
Systems to “establish and convene a task force to develop a plan for
integrating instruction in business ethics into their business and
business administration programs.” Dean Luís Calingo represents the
CSU business deans on this statewide task force.
Traditionally, business schools have emphasized the teaching of
analytic methods and substantive knowledge, thereby equipping
graduates with the expertise needed for staff jobs. We want to go
beyond that by preparing our graduates for leadership positions in the
public, private, and nonprofit sectors and for the ethical challenges
they will encounter throughout their careers.
The proposed Center for Ethical Leadership rests on four premises.
First, the long-term success of an organization, community or a society
depends on good leadership, not just on technical proficiency and
skillful management. Second, good leadership must be grounded in
ethical values. Third, there are tensions between personal values and
goals, on the one hand, and organizational, community or societal
values and goals on the other. Ethical leadership involves recognizing
and reconciling those tensions. Fourth, although leadership is a
complex form of human behavior, most of what we think of as
leadership is learned and, therefore, can be taught. However, very few
colleges and universities teach leadership, and very few institutions
provide leadership training for their employees. Indeed, the United
States military is virtually the only American institution that
systematically develops leaders.
Much of the initial design of the proposed Center benefited from
consultations with the Center for Ethical Leadership at the LBJ School
of Public Affairs, University of Texas at Austin. Centers with quite
similar missions as the proposed Center include: Center for Business
Ethics (Bentley College), Center for Ethics and Businesses (Loyola
Marymount University), Center for Responsible Business (University
of California at Berkeley), Corporate Governance Institute (San Diego
State University), Institute for Social Responsibility (San Jose State
University), Markkula Center for Applied Ethics (Santa Clara

University), Center for Ethical Leadership (Concordia College), the
forthcoming Center for Business Ethics (Columbia University), and the
forthcoming Global Citizenship Initiative (University of Michigan at
Ann Arbor). With the exception of the Centers at the University of
Texas and Concordia College, the Dean of the College of Business
Administration is not aware of any other university center whose
mission is the same as the proposed Center.
The Center for Ethical Leadership represents a major advance in
professional business education at CSULB. It is envisioned that the
College of Business Administration will involve other colleges and
departments at CSULB so that the proposed center will eventually
become a University Center for Ethical Leadership.
Faculty Involvement
The Center for Ethical Leadership will be an interdisciplinary center
that will be administratively housed in the College of Business
Administration. To be appointed as a member of the Founding Faculty
of the Center, the faculty member must commit to the infusion of a
business ethics module into his/her courses (equivalent to at least
three hours of instruction during the semester) and must also commit
to the conduct of research on the ethical issues in his/her discipline
(resulting in at least one refereed journal article on the subject in a
three-year period). Further, the faculty member must be willing to
deliver the above expectations within the constraints of resources
available to the College (i.e., with very minimal additional financial
support from the College).
As of the start of the Fall 2004 semester, the following seven faculty
members in the College of Business Administration have signified
their intention of being part of the Founding Faculty of the Center for
Ethical Leadership:
Luís Ma. R. Calingo
Dean, College of Business Administration
Deborah R. Gaut
Assistant Professor of Business Communications

Barbara Crutchfield George
Professor Emeritus of Legal Studies in Business
Kathleen A. Lacey
Professor of Legal Studies in Business
Arthur M. Levine
Linda A. O’Hara
Assistant Professor of Organizational Behavior
Judith P. Strauss
Assistant Professor of Human Resource Management
In addition, several faculty members from other colleges at CSULB
and other universities have signified their intention of cooperating
with the Center for Ethical Leadership by committing to incorporating
an ethics module in their course offerings (as appropriate) and/or
conducting research into ethics in their respective professions. As of
the start of the Fall 2004 semester, these Cooperating Faculty include:
College of the Arts
Patrick McDonough
Professor of Theater Arts
Head of Theater Management
College of Liberal Arts
Mathew A. Cabot
Assistant Professor of Journalism
Peter Lowentrout
Professor of Religious Studies
Director, University 100 Program
Jeffrey Moriarty
Assistant Professor of Philosophy
Director, Center for Applied Ethics

Craig R. Smith
Professor of Communication Studies
Director, Center for First Amendment Studies
College of Engineering
Wayne E. Dick
Professor of Computer Engineering & Computer Science
College of Natural Sciences and Mathematics
Carol A. Itatani
Professor of Biological Sciences; B.S. Microbiology Advisor
Lisa S. Klig
Professor of Biological Sciences
University of Asia and the Pacific, Philippines
Raymund Pangilinan
Professor of Management
Middle East Technical University, Turkey
Semra Aşcıgil
Professor of Business Administration
Community Support
Dean Luís Calingo initially proposed the establishment of a University
Center for Ethical Leadership in his op-ed article (dated July 21, 2002)
in the “Sunday Forum” of the Long Beach Press Telegram. Since that
time, the concept of the Center has received favorable feedback from
the business community.
Dean Calingo presented the initial formal concept plan for the
proposed Center for Ethical Leadership at the September 18, 2002
meeting of the College’s Chief Executive Officers Forum. The CEO
Forum gave its preliminary support for the concept and advised the

Dean to prepare a more detailed program plan that includes an
implementation schedule and a projected budget. The Dean then had
a series of consultations with the Human Resource Management
Program Advisory Board (the latest being on February 26, 2003) and
the LeadershipTraQ Board of Directors (May 20, 2003). At its June 11,
2003 meeting, the Dean’s Advisory Board unanimously endorsed the
establishment of the Center for Ethical Leadership.
Subsequent consultations involved the following alumni and business
leaders:
Howard E. Chambers
Vice President, Program Management and Independent Review
The Boeing Company
Seal Beach, California
Chip Espinoza
Executive Vice President, LeadershipTraQ
Cypress, California
Robert L. Lorber
President, Lorber Kamai Consulting Group
Davis, California
Curtis L. Pringle
Mayor of Anaheim, California
Marketing, 1981; MPA, 1986
Thomas A. Reep
Chief Financial Officer and Vice President for Finance
First Consulting Group
Long Beach, California
Finance, 1977; MBA, 1993
Karl H. Romero
President, LPL Financial Services
Santa Ana, California
Finance, 1973

Robert F. Schack
Chairman and Chief Executive Officer
American Business Bank
Los Angeles, California
Finance, 1970; MBA, 1972
Michael M. Smith
Attorney at Law, Gambrell & Stolz, LLP, Atlanta
Accountancy, 1977
Bob Stone
Energizer in Chief, The Public Strategies Group
Deputy Assistant Secretary of Defense, 1981-1993
Chair, National Performance Review Task Force, 1993-1999
Mick Ukleja
President, LeadershipTraQ
Cypress, California
Philosophy, 1973
The establishment of mutually beneficial linkages and collaborative
partnerships with existing university centers/institutes or not-for-
profit organizations with comparable missions will accelerate the
future development of the proposed Center. These prospective
partner-organizations include:
• LeadershipTraQ <www.leadershiptraq.com>, a not-for-profit
leadership consortium with the mission of “empowering leaders to
live life on purpose.”
• Global Diversity Institute <www.globaldiversityinstitute.org>, a
not-for-profit organization aimed at providing a safe space for
critical thinkers to share their thoughts, research and experiences
on workplace cultural improvements directed at the themes of
social justice, multicultural equity and postmodern organizational
forms.
• The Joseph & Edna Josephson Institute of Ethics
<www.josephsoninstitute.org>, a nonpartisan, not-for-profit
membership organization founded by Michael S. Josephson (Los
Angeles, Calif.) in honor of his parents to improve the ethical
quality of society by advocating principled reasoning and ethical
decision making.

• Ethics Officer Association <www.eoa.org>, a professional
association for managers of ethics, compliance and business
conduct programs in almost 1,000 corporations in the United States
and 10 other countries.
• International Business Ethics Institute <www.business-
ethics.org>, a not-for-profit educational organization formed in
1994 in response to the growing need for transnationalism in the
field of business ethics.
• The Aspen Institute <www.aspeninstitute.org>, a global forum that
convenes leaders to address critical issues that confront societies,
organizations, and individuals.
• The James MacGregor Burns Academy of Leadership
<www.academy.umd.edu>, a not-for-profit organization within the
University of Maryland's College of Behavioral and Social Sciences
whose mission is to foster principled leadership through
scholarship, education, and training, with special attention to
advancing the leadership of groups historically underrepresented in
public life.
• Greenleaf Center for Servant Leadership <www.greenleaf.org>, an
international, not-for-profit institution that helps people
understand the principles and practices of servant-leaders
(increased service to others) through a holistic approach to work;
promoting a sense of community; and the sharing of power in
decision making.
• Leadership Long Beach <http://www.leadershiplb.org/>, a program
for the development of “diverse principled leaders for community
enrichment.”

Proposed Center Initiatives and Related College Accomplishments
Section
4
Proposed Center Initiatives and Related
College Accomplishments
Outreach: Service to the Community
Planned Initiatives
The Center for Ethical Leadership proposes to serve the business and
professional communities through three major outreach initiatives:
the Leadership Roundtable, Business and Organizational Ethics
Partnership, and Continuing Professional Education. The Center will
hold Leadership Roundtable executive briefings that will bring to
CSULB prominent national and international scholars and speakers to
present new developments in the fields of leadership, business ethics,
and corporate governance. Through the Center, the College of
Business Administration will organize a Business and
Organizational Ethics Partnership with companies in various
sectors to explore questions, challenges, and opportunities faced by
organizations in managing their ethics programs. In cooperation with
the University College & Extension Services (UCES) and the
professional societies, the Center will organize events and training
seminars on ethical leadership and corporate governance, which will
grant Continuing Professional Education credit to accountants,
lawyers, and other professionals in Southern California. Examples of
course topics might include the Sarbanes-Oxley Act of 2002, creating
an environment for empowerment and ethical behavior,
whistleblowing and creating a non-retaliatory workplace,
organizational governance, public responsibility and citizenship, and
serving on not-for-profit boards.
To date, the College of Business Administration has organized the
following seven Leadership Roundtable executive briefings for the
community:

• “The Supply and Demand of World Energy,” Peter Davies (BP
Chief Economist), 2001
• “Global Financial Market in Turbulent Times,” Morgan Stanley,
Trust Company of the West, and Citibank, 2001
• “Leading in Tough Times,” Ken Blanchard, 2002
• “Crisis Leadership—Preparing for the Unthinkable: The New
Competitive Edge,” Ian I. Mitroff (University of Southern
California), 2002
• “Emotionally Intelligent Leadership: The Key to Maximizing
Performance,” Joseph L. Mancusi (President, Center for
Organizational Excellence), 2002
• “Influential Communication: Powerful Collaboration,” Michael
Brandwein, 2003
• “Good Ethics = Good Business,” Marianne M. Jennings (Arizona
State University), 2003
• “WICS: A New Theory of Leadership Incorporating Wisdom,
Intelligence, and Creativity, Synthesized,” Robert J. Sternberg
(President, American Psychological Association), 2004
The College also conducted ten faculty breakfast briefings for members
of the Leadership Roundtable. Of these ten briefings, the following
seven (7) dealt with research issues related to the Center for Ethical
Leadership:
• “Eight Tracks to Personal and Organizational Transformation,”
Ralph H. Kilmann (Visiting Scholar and author of Quantum
Organizations), 2002
• “Organizational Norms for Communicating: How Do New Hires
Learn the Ropes?,” Jenny W. Gilsdorf (Business Communication),
2002
• “The 4 Ps of Motion Picture Piracy and How to Cope with Them,”
Terrence H. Witkowski, 2002
• “Leadership Style and Group Creativity: One Size Does Not Fit
All,” Linda A. O’Hara (Management/HRM), 2002
• “Ethics and Values in Corporate America: The Good, the Bad, and
the Possible,” Arthur M. Levine (Business Law), 2003
• “Equity in the Workplace,” Ted H. Shore (Management/HRM),
2003
• “The Contagious Leader: Impact of Leader’s Emotion on Group
Effectiveness,” Tom Sy (Management/HRM), 2004

Programs for Academic Year 2004/05
The Center for Ethical Leadership proposes to offer two educational
programs for the business and professional communities during the
2004/05 academic year. First, the College sponsored a Leadership
Roundtable executive briefing (October 25, 2004) on Reinventing
Government, featuring Bob Stone, author of the best-seller
Confessions of a Civil Servant: Lessons in Changing America’s
Government and Military (Foreword by Tom Peters, 2003), in
conjunction with the launch of the new MBA Program in Municipal
and Public Agency Management. Second, the College is partnering
with the Global Diversity Institute to design and offer a CEU-bearing
Certification in Workplace Diversity and Ethical Pluralism.
This proposed offering (see Appendix A, pages 30-32) will be the
country’s first standardized certification program for future and
present human resource managers, diversity consultants, and other
workplace practitioners in the arena of multiculturalism or diversity
management and workplace ethics.
Research: Creating Usable Knowledge
Planned Initiatives
The Center for Ethical Leadership seeks to be a leader in research on
ethical leadership, both in the academic and practitioner arenas. The
Center will award competitive grants for faculty and student research
that will result in an article, book or teaching materials (e.g., case
studies) on the subject of ethical leadership or ethics in the professions.
In its early stage of development, the Center will place priority on
research areas that are aligned with the Founding Faculty’s
capabilities and interests. These include the ethics of international
business, the implications of the Sarbanes-Oxley Act of 2002 for
management practice, and the ethical aspects of the global outsourcing
of U.S. jobs. Examples of future research projects might include: an
integrated theory of ethical behavior; impact studies of corporate social
responsibility programs; impact studies of global ethics principles (e.g.,
Sullivan Principles), ethics certifications, and business ethics centers;
developing and validating instruments for measuring ethical behavior

in organizations; and the relationship between ethical behavior and
organizational culture, conflict management, and individual courage.
The faculty of the College of Business Administration has produced
intellectual contributions in ethical leadership, business ethics,
corporate governance, and ethics-related issues in the business
disciplines. The following are some of the articles that CBA faculty
published in refereed scholarly journals:
• “Gifted Pollution Allowances: Recognizing a Liability to Society,”
Critical Perspectives on Accounting, Herbert G. Hunt III
(Accountancy)
• “The ‘Threat Hypothesis,’ Personality, and Attitudes toward
Diversity,” Journal of Applied Behavioral Science, Judy P. Strauss
(Management/HRM) & Peter A. Ammermann (Finance)
• “The 1998 OECD Convention: An Impetus for Worldwide Changes
in Attitudes toward Corruption in Business Transactions,”
American Business Law Journal, Barbara C. George & Kathleen A.
Lacey (Business Law)
• “Globalization, ‘Asian Values,’ and Economic Reform: The Impact
of Tradition and Change on Ethical Values in Chinese Business,”
Cornell International Law Journal, Clyde D. Stoltenberg
(International Business)
• “Codes of Ethics as Signals for Ethical Behavior,” Journal of
Business Ethics, Ted H. Shore (Management/HRM)
• “The Contagious Leader: Impact of Leader’s Affect on Group
Member Affect and Group Processes,” Journal of Applied
Psychology, Thomas Sy (Management/HRM)
• “Advertising Disclosures: Clear and Conspicuous or Understood
and Used?” Journal of Public Policy and Marketing, Ingrid M.
Martin (Marketing)
The College of Business Administration has recently launched the
Global Outsourcing and Public Policy Initiative (GOPPI),
which is a multi-disciplinary, multi-institutional program (see
Appendix B, pages 33-35) designed to provide policy makers, key

stakeholders, and the public with the data and analyses required to
make informed decisions regarding global outsourcing. Global
outsourcing, particularly the “offshoring” of information technology
(IT) and IT-related functions, has been at the forefront of current
debate in the academic world and the popular press; of immediate
concern in almost every sector of the workforce; and already giving rise
to uninformed or misinformed policy decisions. It raises several ethical
issues, such as codes of conduct in international business, global labor
standards and workers’ rights, and cross-cultural management, that
fall within the purview of the Center for Ethical Leadership. A one-
day National Roundtable on Global Outsourcing Initiatives is being
planned for 2005 to discuss offshoring-related issues, as well as the
policy and educational implications of U.S. global outsourcing and
offshoring initiatives. The College’s GOPPI activities to date have
been funded in part by a grant from The Boeing Company.
Education: Preparing Ethical Leaders
Planned Initiatives
The Center for Ethical Leadership proposes to impact the curriculum
at California State University, Long Beach through four major
educational initiatives: Ethics across the Curriculum, Graduate
Fellowship in Ethical Leadership, Leader-In-Residence Program, and
California Leadership Academy. The Center for Ethical Leadership
will implement an Ethics across the Curriculum initiative, which
will financially support the infusion of business ethics and ethical
leadership in undergraduate and graduate courses in the College of
Business Administration and other colleges with partnerships with
CBA. The Center will work with the University’s Community Service
Learning Center to advance the integration of community service into
academic courses. This initiative will involve grants for the
development of case studies, teaching materials (e.g., scenarios on
bribery, plant relocation, product safety, and work-life balance), new
courses, and textbook scholarships for Community Service Learning
students. Through a Graduate Fellowship in Ethical Leadership,
the Center will strive to develop the leadership potential of selected
students enrolled in the MBA Program. In the long term, the Center
will sponsor a Leader-in-Residence program to bring outstanding

leaders to the College and will study the feasibility of organizing an
annual California Leadership Academy to prepare student leaders
from around the state in meeting the challenges of ethical leadership
in business and the professions.
The College of Business Administration presently offers the following
four courses that have a business ethics component: FIN 320 Legal
and Regulatory Environment of Business (undergraduate-level), FIN
520 Legal, Regulatory, and Ethical Environment of Business
(graduate), FIN 624 Cyberlaw, and MGMT 326 Management and
Society. The College recently developed jointly with the College of
Liberal Arts (Department of Philosophy) CBA 400/PHIL 400 Business
Ethics, which be offered starting Fall 2005 as a team-taught course
(see Appendix C, pages 36-38) that will satisfy the University’s
General Education Capstone requirement. The College of Liberal Arts
also offers the following three ethics courses: PHIL 362I Ethics and
Computer Technology, PHIL 363 Ethical Theory, and PHIL 403I
Medical Ethics.
The College of Business Administration will allocate $10,000 from a
gift from The Boeing Company to offer two grants to support either
research on business ethics or the development of a teaching module
that aims at clearly integrating and considering ethical concepts in an
existing business course (other than FIN 320, FIN 520, FIN 624, and
MGMT 326). Faculty recipients will be urged to seek publication of
their grant-supported work.

Leadership and Management of the Center
Section
5 Leadership and Management of the Center
Leadership of the Center
The Dean of the College of Business Administration, acting as Co-
Director, will provide the strategic leadership of the Center for Ethical
Leadership. The Dean’s direct involvement will ensure the continuity
of ethical leadership as a top priority of the College’s senior leadership.
The Dean will be assisted by a faculty Co-Director and a graduate
student assistant.
As Co-Director of the Center for Ethical Leadership, the Dean will
have the following responsibilities:
• Develop the Center’s vision, strategy, and goals, in consultation
with the Center’s key stakeholders.
• Manage external relationships, including communicating with
stakeholders and developing community relations.
• Manage the Center’s improvement and change, including measur-
ing organizational performance and benchmarking performance
vis-à-vis similar centers in the nation.
To enable CSULB in the future to attract and retain a nationally
renowned academic leader for the College of Business Administration,
the creation of an endowed Dean’s Chair in Ethical Leadership is
proposed, to be granted to future deans of the College. It is estimated
that a $1,500,000 endowment for the Dean’s Chair will achieve this
objective, given that CSU business deans’ average compensation is less
than 80 percent of the national average for AACSB-accredited business
schools. The endowment should enable the College to attract an
eminent scholar with top credentials in leadership education and
research and a distinguished record of personal leadership experience
at the highest levels.

During the incumbency of Dean Luís Calingo, the proceeds from the
Dean’s Chair endowment (if already available) will be utilized to pay
the salary of the Center’s Managing Director. Following establishment
of the Dean’s Chair, the Managing Director and his/her staff will be
appointed as CSULB Foundation employees whose positions will be
funded by future private gifts and foundation grants.
Management of the Center
The Dean of the College of Business Administration, in consultation
with the Provost and the Center’s Governing Council, will appoint a
Faculty Co-Director (on reimbursed assigned time) and a Managing
Director. These personnel will operate out of the Dean’s Office suite,
with the Dean allocating a standard-sized office for the Center.
The Faculty Co-Director of the Center for Ethical Leadership shall be
appointed from among the tenured and tenure-track faculty of the
College of Business Administration who are academically qualified in
the field of ethical leadership, business ethics, or leadership. The Co-
Director will have the following responsibilities:
• Provide support that will lead to an understanding of markets and
clients by (a) conducting qualitative and quantitative assessments
for determining client needs and (b) measuring client satisfaction.
• Lead in the design of new programs and services to be offered by
the Center. This includes (a) developing new program/service
concept and plans, (b) designing, building, and evaluating
pilot/prototype programs and services, and (c) evaluating and
refining existing programs and services.
• Administer education and research grants for CSULB faculty,
including call for proposals and organization of evaluation
committees.
• Develop and manage the Center’s human resources. This includes
(a) supervising the Managing Director and all staff assigned to the
Center and (b) identifying the education and training needs of
Managing Director and assigned staff.
• Assist the Dean in managing external relationships, with focus on
relationships within the university. This includes (a) developing
the Center’s public relations program and (b) working with the

CSULB Foundation and the CSU Office of General Counsel in
managing legal and ethical issues.
• Assist the Dean in managing the Center’s improvement and change
by conducting quality assessments and improving processes and
systems, including managing transition to maturity.
The position of Managing Director of the Center for Ethical Leadership
shall hold an exempt administrative staff position. He/she will be
appointed as an employee of the CSULB Foundation, following a
search that will be conducted by the Dean of the College of Business
Administration and the Governing Council of the Center for Ethical
Leadership. The Managing Director will have the following
responsibilities:
• Support the Faculty Co-Director in (a) designing the Center’s
programs and services and (b) preparing new programs and
services for full-scale implementation.
• Market and promote the Center’s programs and services. This
includes (a) marketing programs and services to relevant client
segments by addressing pricing, advertising, budgeting, selling,
and negotiations, and (b) fulfilling requests for customized
programs and services.
• Arrange all logistical support required for the efficient delivery of
the Center’s programs and services to the community and the
public. This includes (a) planning for and acquiring necessary
supplies and equipment, (b) coordinating the provision of services
to clients, and (c) providing logistical support to the Faculty Co-
Director in the administration of education and research grants for
CSULB faculty.
• Invoice and service clients. This includes (a) billing the client
(including training participants) and (b) responding to information
requests and managing complaints from clients.
• Manage information resources. Work with the College’s
Instructional Technology Office to plan for information resource
management, develop support systems, implement systems
security and controls, and manage information.
• Manage the Center’s financial resources. This includes (a)
developing budgets, (b) working with the CSULB Foundation and
the College Administrative Services Manager in processing
financial and accounting transactions, and (c) reporting financial
information to the Co-Directors and the Governing Council.

Governance of the Center
The Dean of the College of Business Administration, in consultation
with the Provost, will establish a Governing Council to provide
guidance to the Center in the areas of leadership and program
development and will be the principal arm of the Center in the
securing of private gifts and external support to the Center. It is
envisioned that a fully developed Governing Council will have 10-15
members.
The Governing Council will have the following responsibilities:
• Participate in the development of the Center’s vision and strategy
by helping (a) monitor the external environment, (b) define the
Center’s business concept and organizational strategy, and (c)
design the organizational structure and relationships between the
Center and other entities.
• Assist the leadership and management of the Center in
understanding the Center’s markets and clients by helping (a)
determine client needs and wants and (b) monitor changes in
market or client expectations.
• Manage external relationships, including communicating with
stakeholders, developing community relations, and spearheading
fund-raising and development activities for the Center.
The following leaders are the projected founding members of the
Governing Council of the Center for Ethical Leadership:
Chairman
Mick Ukleja
President, LeadershipTraQ
Cypress, California
Members
Dorothy Z. Abrahamse
Dean, College of Liberal Arts
California State University, Long Beach

Howard E. Chambers
Vice President, Program Management and Independent Review
The Boeing Company
Seal Beach, California
Stephen Feldman
President and Chief Executive Officer
The Astronauts Memorial Foundation
Kennedy Space Center, Florida
Jack E. Hinsche
Managing Partner
Windes & McClaughry Accountancy Corp.
Long Beach, California
J. Michael Hostetler
Associate Vice President for Student Services and Dean of Students
Michael Josephson
Founder and President
Josephson Institute of Ethics and CHARACTER COUNTS!
Los Angeles, California
Robert L. Lorber
President, Lorber Kamai Consulting Group
Chair, Dean’s Advisory Council, University of California at Davis
Davis, California
Curtis L. Pringle
Mayor of Anaheim, California
Speaker of the California Assembly, 1996
William S. Shumard
Executive Director of Athletics
Bob Stone
Energizer in Chief, The Public Strategies Group
Deputy Assistant Secretary of Defense, 1981-1993
Chair, National Performance Review Task Force, 1993-1999

Ex-Officio Voting Members
Luís Ma. R. Calingo
Dean, College of Business Administration
Faculty Co-Director of the Center for Ethical Leadership
College of Business Administration

Resource Requirements
Section
6 Resource Requirements
Annual Financial Requirements
The College—based on the experience of the Center for Ethical
Leadership at the LBJ School of Public Affairs, University of Texas at
Austin—estimates the funding gap of the Center for Ethical
Leadership to be about $80,000 for the first operating year (FY
2005/06). A fully operational Center for Ethical Leadership that offers
the full range of programs and services outlined earlier would require
an annual private investment of about $200,000, broken down as
follows:
BUDGET ITEM 2005/06 2006/07 2007/08
PROGRAM ADMINISTRATION 66,954 125,298 125,298
PROGRAM OPERATIONS
Outreach Component 10,000 20,000 20,000
Research Component 15,000 30,000 30,000
Education Component
“Ethics Across the Curriculum”
Grants 10,000 20,000 20,000
Graduate Fellowships in Ethical
Leadership 32,000 64,000 64,000
Leader-In-Residence Program 25,000 25,000
Supplies and Services 5,000 10,000 10,000
Sub-Total for Education Component 47,000 119,000 119,000
University Overhead Charges 1,854 8,055 8,748
TOTAL EXPENDITURES 140,808 302-353 303,046
Less: Revenues and Contributions 61,605 76,954 113,303
GOAL FOR GIFTS, GRANTS, &
CONTRACTS 79,203 225,399 189,743
The College estimates that if the operations of the Center for Ethical
Leadership are to be completely supported by operating revenues and
endowment proceeds, a total endowment of about $4,000,000-
$4,500,000 will be required. This estimate assumes a five percent (5%)

annual spending rate on endowments, which is the national average
spending rate for educational endowments (2005 Commonfunds
Benchmarks Study®). Details of the budget cost estimate are provided
in the Proforma Statement of Sources and Applications of Funds,
provided in the Appendix.
The College of Business Administration, in collaboration with the
Office of the Provost and the Division of University Relations &
Development, will approach the following private foundations for seed
funding of the different components of the program: The Boeing
Company, Citigroup Foundation, DENSO North America Foundation,
Eli Lilly and Company Foundation, and The Pew Charitable Trusts.
Implementation Schedule
YEAR 1 (September 2004-August 2005)
1. Provide the following competitive faculty grants:
a. “Ethics Across the Curriculum”– one award
b. Research on ethical leadership – one award
c. Development of educational program for the community – one
award
2. Explore seed funding opportunities from the following foundations:
The Boeing Company, Citigroup Foundation, DENSO North
America Foundation, Eli Lilly and Company Foundation, and The
Pew Charitable Trusts.
3. Establish linkages with university or not-for-profit centers or
institutes with comparable missions. These include: Global
Diversity Institute, Joseph & Edna Josephson Institute of Ethics,
Ethics Officer Association, International Business Ethics Institute,
The Aspen Institute, The James MacGregor Burns Academy of
Leadership, and the Greenleaf Center for Servant Leadership.
4. Fund-raising for Center’s resource need of $80,000 for 2005/06
academic year.
5. Obtain final University authorization for the Center.
6. Study the feasibility of a campaign to endow the Center and/or its
components. Endowment opportunities are as follows:
a. Endowed Center for Ethical Leadership — from $2,500,000 to
$3,000,000

b. Endowed Dean’s Chair in Ethical Leadership — $1,500,000
c. Endowed Faculty Grants (external course/program
development, faculty research, and curriculum development) —
12 endowments @ $150,000 each
d. Endowed MBA Tuition Scholarship (Graduate Fellowship in
Business Leadership) – two endowed scholarships @ $640,000
each
e. Endowed Leader-In-Residence Program — $500,000
7. Formulate and implement media and public relations plan for the
Center.
8. Appoint Faculty Co-Director and commence search for Managing
Director and graduate student assistant.
1. Hire the Managing Director and graduate student assistant.
a. “Ethics Across the Curriculum”– two awards
b. Research on ethical leadership – two awards
c. Development of educational program for the community – two
awards
3. Award MBA tuition scholarship to one full-time student joining the
MBA program during 2005/06 academic year.
4. Fund-raising for Center’s resource gap of $210,000 for 2006/07
academic year. This financial need will be reduced by any
endowments established in behalf of the Center.
a. “Ethics Across the Curriculum”– four awards
b. Research on ethical leadership – four awards
c. Development of educational program for the community – four
awards
2. Award MBA tuition scholarships to two full-time students joining
the MBA program during 2006/07 academic year.
3. Conduct feasibility study for California Leadership Conference,
with a target of 100-150 participants.
4. Fund-raising for Center’s long-term needs of about $200,000 per
year.

1. If found to be a feasible, self-supporting venture, conduct California
Leadership Conference, with a target of 100-150 participants.
a. “Ethics Across the Curriculum”– four awards
b. Research on ethical leadership – four awards
c. Development of educational program for the community – four
awards
3. Award MBA tuition scholarships to two full-time students joining
the MBA program during 2007/08 academic year.
4. Fund-raising for Center’s long-term needs of about $200,000 per
year.

Proforma Statement of Sources and Uses of Funds

Notes to Proforma Statement
1. It is estimated that the Certification in Workplace Diversity and
Ethical Pluralism, which the Center will offer in partnership with
the Global Diversity Institute starting 2005, will generate for the
College indirect costs recovery in the amount of $30,000 during the
2005/06 academic year, $45,000 during 2006/07, and $60,000
during 2007/08 and every year thereafter. This allocation is based
on the indirect overhead rate of $1,200 per participant negotiated
with the Global Diversity Institute, based on a program fee of
$7,500 for an 8-CEU certification course, and at least 16
participants every year.
2. The Center plans to offer through UCES one non-degree course
during the 2005/06 academic year, two courses during 2006/07, and
four courses during 2007/08 and every year thereafter. Based on
consultations with UCES, the net revenue to the Center is
estimated to be about $3,700 per course.
3. The proposed University contributions to the Center include: (a)
CBA assigned time to the Faculty Co-Director of twelve weighted
teaching units (WTUs)—the equivalent of four courses—during the
2005/06 academic year, nine WTUs (i.e., three courses) during the
2006/07 academic year and six WTUs (i.e., two courses) during the
2007/08 academic year, (b) CBA graduate assistant support for 20
hours per week during the 2005/06 and 2006/07 academic years
and ten hours/week during the 2007/08 academic year, and (c) a
seed grant for non-degree program development to be provided by
UCES. College of Business Administration sources of support will
include State General Fund, State Lottery Fund, and the
Continuing Education Reserve Fund. Complete self-sufficiency
from CBA sources of support is estimated to begin with the 2008/09
academic year.
4. The $10,000 beginning cash on hand represents the faculty grant
received from The Boeing Company in August 2004.
5. The amount indicated for “Estimated Future Gifts, Grants, and
Contracts” is a plugged figure and represents the funds that the
Center will need to raise every year from external sources,
including government agencies and private foundations. The

annual fund-raising goal is below the College’s annual receipts from
private gifts and grants during the past three fiscal years.
6. The Faculty Co-Director will be provided with assigned time
support at the rate of 12 WTUs during the 2005/06 academic year
and thereafter. As indicated in Note 3 above, this support will
initially come from CBA sources and will decline to zero starting
the 2008/09 academic year.
7. The Managing Director, an administrative staff position, will be a
CSULB Foundation employee who will have a 50 percent time base
during the 2005/06 academic year and a 100 percent time base
starting the 2006/07 academic year. The Managing Director’s
equivalent position in the CSU will be Administrative
Analyst/Specialist (12 month), Exempt II, which currently has an
annual salary range of $50,424-$75,636.
8. The Center will be provided with a half-time graduate assistant (10
hours/week for one academic year) during the 2004/05 academic
year and a full-time graduate assistant (20 hours/week) starting
the 2005/06 academic year. As indicated in Note 3 above, this
support will initially come from CBA sources and will decline to
zero starting the 2008/09 academic year.
9. “Operating Expenses and Equipment” is estimated at 24 percent of
salaries (including faculty assigned time and graduate assistant).
10. Each faculty grant for outreach (non-degree course/program
development), research, or teaching (“Ethics Across the
Curriculum”) will be a stipend in the amount of $5,000. These
grants will be made available to faculty selected through a
competitive process. One grant in each area (i.e., outreach,
research, and education) will be awarded during the 2004/05
academic year, two grants in each area for a total of six grants will
be awarded during the 2005/06 academic year, and four grants in
each area for a total of 12 grants will be awarded during the
2006/07 academic year and every year thereafter.
11. Each faculty recipient of either a research or a teaching grant (per
Note 9 above) will be allocated “Supplies and Services” support in
the amount of $2,500.

12. The College will offer, in partnership with UCES, a one-year, full-
time, self-supporting Accelerated MBA Program starting the
2005/06 academic year. The planned tuition fee (48 units) for this
program is about $32,000. The Center proposes to offer one full
tuition scholarship to an outstanding, newly admitted Accelerated
MBA student during the 2005/06 academic year and two full tuition
scholarships during the 2006/07 academic year and every year
thereafter.
13. In the Leader-In-Residence Program, the Center will invite
prominent former or current office holders, business executives,
government officials and leaders of not-for-profit organizations to
spend time in residence at the College, where they will interact
with students and faculty and be available to address organizations
throughout Southern California. Leaders-in-residence will engage
CSULB students and faculty with the aim of fostering an
interdisciplinary leadership community at the University. Leaders-
in-residence will work with CSULB students and faculty in a
variety of settings, including formal classroom instruction, informal
topical discussions with small groups of students and faculty, and
scheduled or informal meetings with individuals. The estimate of
$25,000 is based on the cost of an actual one-week Leader-In-
Residence in the Center for Ethical Leadership at the University of
Texas, Austin.
14. The CSULB Foundation overhead charges are estimated at eight
percent of all expenditures (except tuition scholarships for the
Accelerated MBA Program) that are not funded by State General
Fund, State Lottery Fund, or Continuing Education Reserve Fund
sources.

Appendix A
Appendix
A
Certification in Workplace Diversity and
Ethical Pluralism
Overview
The first fee-based educational program that the Center for Ethical
Leadership (CEL) will provide to the business community will be a
new Certification in Workplace Diversity and Ethical Pluralism that
will be offered in collaboration with the Global Diversity Institute
(GDI). Completion of the program will lead to designation as a
Certified Professional in Workplace Diversity and Ethical Pluralism
that the Center will award, along with eight continuing education
units (CEUs) of professional development credit. The successful
participant will be authorized to use the GDI-CEL logo to establish
one’s professional branding, much like similar professional
certifications.
Objectives of the Certification
The Certification in Workplace Diversity and Ethical Pluralism is
designed to develop and equip people to be Certified Professionals in
Workplace Diversity and Ethical Pluralism within their organizations.
Certification equips each participant to become an internal consultant
at the strategic level, working with management in the creation and
nourishment of a vital organization. Specifically, by the end of the
program, each participant will be able to:
1. Become an internal consultant at the strategic level, working with
management in the creation and nourishment of an ethical
pluralist vital organization;
2. Be able to diagnose workplace issues and facilitate workplace
improvements and solutions to challenges;
3. Communicate the process to secure stakeholder buy-in;
4. Instill, as an organizational norm, a social context for diversity and
vitality that promotes the positive self-regulation of ethical
behaviors, avoiding dysfunctional intercultural conflicts and future
Enron-type disasters;

Appendix A
5. Enable external diversity practitioners to be better equipped to
build their practices in a way that addresses 21st century
challenges. They will learn about and be able to use the
interdependence between organizational dynamics, knowledge
management, ethics, organizational cultures of vitality and
diversity in preparing their clients for the fast-changing world.
There will be two certification processes. The first includes two
semesters (80 hours) of coursework. The second will be a contracted
offering of 80 hours of coursework negotiated with the client and
customized to a schedule and location of their preference. Each group
will proceed through the certification process as a cohort, providing the
basis for considerable group reinforcement, support and resource
provision, and networking.
As the GDI methodology is anchored in ethical practices and behavior
at both the organizational and individual level, ongoing applied
research being conducted by the Center for Ethical Leadership will be
continually integrated into the GDI certification process when
appropriate to both workshops and specific courses. The program will
be enhanced by CEL-GDI collaborative research on such topics as the
perils of relativism masked as valuing diversity practices, workplace
religious pluralism, groupthink, the ethical component of a workplace
constitutional project, and refining our organizational vitality
assessment tool.
Rationale for the Program
To date, there exists no recognized or standardized certification process
or program for future and present human resource managers, diversity
consultants or other workplace practitioners in the arena of
multiculturalism or diversity management and workplace ethics. Yet,
the need exists and many different institutions are speaking of
answering this need. For example:
• SIETAR (Society for Intercultural Education Training and
Research) recently sent out a survey to professionals examining the
need for certification.
• SHRM (Society of Human Resources Managers) states the
principles they consider to be involved in diversity work, yet it does

Appendix A
not have a certification process that can address these challenges
and principles.
• ASTD (American Association of Training and Development) has
begun to address a training certification process, yet it does not
have a module for diversity and have contacted the GDI for
assistance.
These institutions, among others, are on the verge of offering
certification programs given the need and the paucity of rigorous
education addressing this need.
All of these occur within a context of rapid change, increased identity
militancy leading to diversity conflicts, ballooning lawsuits, global
integration, and ethical lapses. Through this proposed certification
program, the Center seeks to not only identify these challenges, but
also address their solutions in a training process professionally
recognized across industries, much like technology certifications are
recognized and needed for career access (e.g., Cisco certification for
telecom server technicians or ISO 9000 quality consultants).
This combined and synergized approach to diversity and ethics is
unique. The original contribution that a combined CSULB-CEL and
GDI certification process could provide the marketplace cannot be
overstated. As previously noted, other institutions are pursuing
certification programs that incorporate methodologies used in the past
that have been found to be ineffective, less thorough and ungrounded
in recent empirical research. Unlike other diversity practices, we seek
to synergize otherwise competing and isolated fields—organizational
development, ethics, knowledge management, and diversity—for
greater effectiveness and efficiency. This methodology will be codified
into a certification process that is thorough in both rigor and global
application.
Faculty Champion
Dr. Judith P. Strauss
Assistant Professor of Human Resource Management

Appendix B
Appendix
B
Global Outsourcing and Public Policy
Initiative
Overview
The Global Outsourcing & Public Policy Initiative is a multi-
disciplinary, multi-institutional program designed to provide policy
makers, state legislators, key stakeholders, and the public with the
data and analyses required to make informed decisions regarding
global outsourcing. Global outsourcing, particularly the “offshoring” of
IT and IT-related functions, is at the forefront of current debate in the
academic world and the popular press; of immediate concern in almost
every sector of the workforce; and already giving rise to uninformed or
misinformed policy and legislative decisions. Offshoring raises several
ethical issues, such as international codes of conduct, workers’ rights,
and cross-cultural management, which fall within the purview of the
Center for Ethical Leadership.
Rationale for the Initiative
According to both the U.S. Bureau of Labor Statistics and Forrester
Research, 3.3 million U.S. jobs, along with $186 billion in wages, will
leave the country by 2015. Based on data and analyses generated by
these two sources, most affected will be three major job sectors:
manufacturing, information technology, and financial services. After
these data were originally reported (March 2004), significant
disparities in politics and the press have emerged regarding: (a) the
projected and actual number of jobs that will leave the U.S. over the
next 3-5 years, and (b) the ramifications of outsourcing IT and IT-
related functions. However, the growing disparities and lack of valid
and reliable scientific research have done little to stem the tide of new
legislation being proposed at the state and federal levels. At present,
at least 31 states and Congress are considering legislation in response
to the public outcry, but based upon little or no scientific research and
analyses.

Appendix B
Several important questions remain unanswered. How will global
outsourcing affect the U.S. economy now and in the future? What are
the short- and long-term benefits and costs of global outsourcing (in
general), and of offshoring research, development, and design (in
particular)? Will national and global security need to be re-
conceptualized in the future? Do changes in foreign and domestic
policies, including legislation, need to be made in order to strike a
balance between economic growth and quality of life? Will new modes
of formal education and training be needed to facilitate business
transformation, workforce development, human resource
management, supply chain management, and day-to-day operations
involving offshore partners? What role does information technology
play with respect to each of these issues? What are potential
vulnerabilities and safeguards to manage risks? These are just a few
of the questions that policy makers need to address if they hope to
propose feasible and effective state and federal legislation.
As creators of this initiative, we seek to increase the quality of policy
decisions about global outsourcing by developing a single, credible
source of scientific knowledge to which all interested parties may turn
for the latest data, analyses, and recommendations.
Proposed Actions
To accomplish this mission, we are initiating a series of global
roundtable discussions that will serve as a springboard for ongoing
dialogue among key stakeholders. These roundtable discussions will
discuss not only the ethical issues of offshoring, but also the
implications for corporate competitiveness, economic development, job
growth, and productivity. Second, we are creating an easily accessible,
interactive, web-based repository of scientific data and analyses about
global outsourcing that will bring together the published works of the
best researchers from various disciplines. Third, we are establishing a
research consortium for scholars around the world who wish to
collaborate regarding the subject. We will be a neutral, dispassionate,
apolitical place to turn for members of Congress, state legislators, and
the public who wish to educate themselves about the issues.
We currently anticipate two major councils driving the initiative: (a) an
academic/research advisory council, and (b) a public policy council.
Each individual or group that comprises the councils will be given one

Appendix B
voice and one vote. Financial participation is not a condition of
membership. We will seek support from relevant funding sources;
however, financial support will have no bearing on policy
recommendations.
Our strategic plan includes two additional elements of vital
importance: ongoing evaluation, and long-term sustainability. We
have engaged the services of an experienced, independent evaluation
firm to guide us in conducting a formal needs assessment, and in
developing a comprehensive evaluation plan from the outset.
Similarly, we are designing our structure and programs in order to
ensure that this initiative will become a permanent resource for policy
makers and the people they serve.
California State University, Long Beach (CSULB) is in conversation
with San Jose State University (SJSU), UC Berkeley, UCLA, and USC
to catalyze this initiative. Each of these partners brings significant
strengths to the initiative. CSULB and SJSU (along with the 21 other
campuses that comprise the CSU system) primarily serve and educate
the people most directly affected by global outsourcing: middle
managers and working-class IT professionals. UC Berkeley, a world-
renowned public university, is home to the prestigious Berkeley
Roundtable on the International Economy. BRIE’s “high-quality
research has earned the respect of business and both sides of the aisle
in Washington.” UCLA, one of the most prestigious public universities
in the U.S., is home to the Center for Civil Society, whose objectives
include “monitoring major developments affecting civil society,
including globalization, and the changing roles of government and
business.” USC, the largest private university in California, is home to
both the Center on Philanthropy and Public Policy, and the Homeland
Security Center of Excellence. Both of these centers have much to
contribute to the dialogue. All five major institutions are already
deeply engaged in these and related issues.
Faculty Champion
Dr. Deborah R. Gaut
Assistant Professor of Business Communication

Appendix C
Appendix
C
Business Ethics: General Education
Capstone Course (CBA 400/PHIL 400)
Catalog Description
This interdisciplinary course will enable students to learn: (1) the
various types of ethical dilemmas that repeatedly take place in
business organizations today and (2) the concepts and tools needed to
manage these complex value conflicts for the well being of individuals,
organizations, and society. By learning and applying various
analytical tools from the fields of philosophy, psychology,
organizational sciences, and the emerging cross-disciplinary field of
crisis leadership, complex value conflicts that derive from an
organization’s intertwined web of stakeholders can be clearly identified
and evaluated. Then the most ethically enlightened decisions and
actions can be selected and implemented.
Overview
CBA 400 Business Ethics enables students to become more aware of,
and skilled at, managing the many ethical dilemmas that they will
face while being employed in a business organization (as well as in
other types of organizations). Essentially, every organization is
embedded in a complex environment of internal and external
stakeholders (e.g., fellow employees, senior managers, customers,
suppliers, stockholders, competitors, financial institutions,
communities, families, nations, and federal, state, and local
governments). In today’s interconnected business environment, each
of these stakeholders places competing, conflicting demands on the
behavior (decisions and actions) of organizational members. These
conflicting demands generate many types of value conflicts including:
the privacy and safety of employees; honesty, loyalty, and whistle
blowing; truth in advertising; product liability; responsibility for the
community and the environment; discrimination in the workplace; and
multinational cultural challenges. For each value conflict, choosing
and implementing an ethical decision can be guided by a deep
understanding of philosophical frameworks, psychological processes,

Appendix C
group dynamics, organizational culture, national cultures, systems
theory, and leadership practices.
Pedagogy
On the first day in class, students will be organized into small groups
(of about six to eight diverse members each) that will continue
throughout the semester. In these Ethical Learning Groups (ELGs),
students will have the opportunity to evolve into a microcosm of society
in order to discuss ethical issues, analyze business cases, and manage
value conflicts. A final group project, constituting at least 25 percent of
each student’s final grade, will enable the students to not only analyze
a complex business case with diverse others, but also to address and
resolve the ethical conflicts that will materialize in their own group
(e.g., confronting the classic free-rider problem, learning to use agreed-
upon sanctions in order to enforce the group’s cultural norms, and
determining the grade distribution on the final group presentation
among group members). The experiential learning derived from these
ongoing group activities and value conflicts will help students learn—
most meaningfully—about ethical dilemmas and the conceptual tools
for resolving them.
1. Identify and apply the major moral theories of the Western
philosophical canon to standard issues in business ethics (e.g., the
privacy and safety of employees; honesty, loyalty, and whistle
blowing; truth in advertising; product liability; responsibility for
the community and the environment; discrimination in the
workplace; and multinational cultural challenges).
2. Recognize, analyze, and critique business ethics arguments that
are part of the contemporary academic literature and public
dialogue in this area.
3. Identify and evaluate how issues of diversity (gender, race, class,
sexual preference, ability level, etc.) interact with principles of
business ethics and actual business practices.
4. Identify, analyze, and constructively criticize their own views and
those of their peers on selected topics in business ethics, with the
aim of systematically evaluating their grounding and considering
possible reformulations of the positions where necessary.
Because of the interdisciplinary—and applied—nature of this course, it
is vital that the instructor not only be well-versed in the study of ethics

Appendix C
and the varieties of philosophical frameworks and arguments, but the
instructor must also be experienced in designing and implementing
ethical programs and change management in businesses and other
types of organizations. If these conjoint areas of knowledge and skills
are not evident in one instructor, it is essential to develop a team
approach to this course with two instructors teaching each class
session together (specifically one ethics instructor from the philosophy
department and another experienced instructor from CBA).
Otherwise, it is unlikely that the students will receive the kind of
applied, interdisciplinary course—rich in ethical theory and
management practice for today’s organizations—that is intended with
this course.
Course Developers
Dr. Ralph H. Kilmann
Visiting Scholar, College of Business Administration, 2001-2003
Dr. Jeff Moriarty
Assistant Professor of Philosophy
CBA Faculty Champions
Dr. Kathleen A. Lacey
Dr. Linda A. O’Hara
Assistant Professor of Organizational Behavior

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