The effects of profit-maximization on ethical climate in higher education: a qualitative study utilizing neutralization theory

Abstract

ABSTRACT This paper develops a neutralization framework of the effects of shareholder pressures on ethical climate, organizational behaviours, and student outcomes in the for-profit higher education (FP) industry. Using a qualitative interpretative approach, we interviewed twenty former and current FP employees with direct insight and experiences into FP. We present empirical evidence showing how employees realized their organizations’ unethical climate and used neutralization techniques to rationalize their continued participation in these organizations. This paper advances ethics research in higher education marketing by unpacking how profit maximization goals lead to unethical recruiting tactics, creating a cascade of ethical problems throughout the organization.