Corinthian College Ethical Case Study
The Unethical Practices of Corinthian College
Synopsis
Corinthian College, Inc., embattled and broken, was once one of the nation’s largest for-profit college systems. Corinthian operated under three college brands: Everest, Heald, and WyoTech. The Corinthian corporation boasted 107 campuses throughout the nation with over 74,000 students (McCoy, 2014). According to the Consumer Financial Protection Bureau, Corinthian’s student population mainly consisted of those from economically disadvantaged environments (McCoy, 2014). Profits steadily climbed year after year, reaching $1.7 billion in 2011 (Glenza, 2014). However, Corinthian began reporting revenue losses after the enrollment boom of 2009 and 2010. These losses coupled with pending lawsuits, …show more content…
Unfortunately, questionable practices continued throughout the colleges owned by Corinthian. Students and families suffered. Misleading recruitment material persisted, all in an attempt to boost revenue. Corinthian ultimately suffered the consequence from its greed and unethical behaviors. Corinthian College, Inc. liquidated its brands, (Everest, Heald, and WyoTech), sold 85 of its campuses, and closed the remaining few (Glenza, …show more content…
Robbins and Judge (2013) address three criterion needed for ethical considerations in organizational decision making: outcomes, rights, and justice. No decision that affects a large population or reason for a company’s existence is easy to make. However, decisions framed around ethical considerations prove to be widely-accepted and respected. Corinthian failed to consider the criteria outlined in the text. First, ethical decisions need to focus on the outcome of the decision, ideally to provide the greatest good for the majority (Robbins & Judge, 2013). Corinthian focused on its bottom line, ignoring the needs of its students and implementing deceptive recruitment techniques to obtain more tuition dollars. Understandably, a for-profit organization’s interest lies in increasing revenue. However, an educational institution’s commitment needs to be on educating the student
Synopsis
Corinthian College, Inc., embattled and broken, was once one of the nation’s largest for-profit college systems. Corinthian operated under three college brands: Everest, Heald, and WyoTech. The Corinthian corporation boasted 107 campuses throughout the nation with over 74,000 students (McCoy, 2014). According to the Consumer Financial Protection Bureau, Corinthian’s student population mainly consisted of those from economically disadvantaged environments (McCoy, 2014). Profits steadily climbed year after year, reaching $1.7 billion in 2011 (Glenza, 2014). However, Corinthian began reporting revenue losses after the enrollment boom of 2009 and 2010. These losses coupled with pending lawsuits, …show more content…
Unfortunately, questionable practices continued throughout the colleges owned by Corinthian. Students and families suffered. Misleading recruitment material persisted, all in an attempt to boost revenue. Corinthian ultimately suffered the consequence from its greed and unethical behaviors. Corinthian College, Inc. liquidated its brands, (Everest, Heald, and WyoTech), sold 85 of its campuses, and closed the remaining few (Glenza, …show more content…
Robbins and Judge (2013) address three criterion needed for ethical considerations in organizational decision making: outcomes, rights, and justice. No decision that affects a large population or reason for a company’s existence is easy to make. However, decisions framed around ethical considerations prove to be widely-accepted and respected. Corinthian failed to consider the criteria outlined in the text. First, ethical decisions need to focus on the outcome of the decision, ideally to provide the greatest good for the majority (Robbins & Judge, 2013). Corinthian focused on its bottom line, ignoring the needs of its students and implementing deceptive recruitment techniques to obtain more tuition dollars. Understandably, a for-profit organization’s interest lies in increasing revenue. However, an educational institution’s commitment needs to be on educating the student