Ethical concerns and implications in contemporary practice

Universities: Need-Based Financial Aid

A Financial Ethics Question at Many Universities Today

According to Adrianna Kezar's article "Understanding and facilitating change in higher education in the 21st century," one of the difficulties in setting policy for a university as opposed to other organizations is the difficulty of measuring when the organization is successful, or what it means to be successful for a university at all. For most for-profit and even for many not-for-profit institutions, the goal is clear -- to make money for shareholders. However, for a university, the goals are more ambiguous, because of the complex ethical demands placed upon schools, by society as a whole as well as the competing interests of faculty, students, and alumni. Being profitable is not enough for most schools -- schools also have a social responsibility to better the lives of students, improve scholarship, and improve the community. Accounting decisions regarding financing cannot be focused merely on profits-maximization they must also consider the impact of decisions upon the student body.

For example, a school could have a generous endowment, from a donor with ethically dubious credentials whose values are not supported by the leaders of the school. This would create an ethical conflict, even though it was profitable for the university. Coca-Cola offers may generous scholarships to Emory University. This school has strong medical programs, even though the Coca-Cola Company sells a product with detrimental health consequences. Is it ethical for Emory to be 'Coca-Cola U,' as it is sometimes called? A school might be assured of a wealthy donation and publicity by lowering its standards to admit children of alumni, or even by admitting student athletes unlikely to graduate. Is this ethical even if it is financially profitable for the school? What about doing away with need-blind admissions if the school believes it requires more tuition dollars to remain afloat in these turbulent financial times?

The question of need-blind aid has become especially fraught in the current economic crisis, where many families have seen their college savings funds for their children become almost totally depleted. Some of the principles Kezar suggests for guiding change that might be worthwhile to remember:

Promote organizational self-discovery: What is more important to our university? A new building? Or ensuring that all students attend the university whom we believe are integral to the upcoming class, regardless of their ability to pay?

Be aware of how institutional culture affects change: If we say that finances are a reasonable criterion in admissions, how will this change the student body and classroom dynamics?

Realize that change in higher education is often political: Why are some alumni pressuring this to take place -- are they afraid the university is becoming too diverse?

Lay groundwork for change: What budget cuts might be necessary to keep need-blind aid?

Focus on adaptability: How will we have to reassess and cut back certain aspects of the 'university' experience in terms of amenities like dorms, parties, quality of food and recreational facilities? Will we need to do this even we no longer have need-blind admissions?

Construct opportunities for interaction to develop new mental models: Dialogue between professors, students, and administrators in considering admissions policies is crucial

Strive to create homeostasis and balance external, forces with internal environment: What are the current financial needs of parents and students today, as balanced with other aspects of education?

Combine traditional teleological tools such as establishing vision, planning, or strategy with social-cognition, cultural, and political strategies: What are the university's core values -- and practical needs?

Be open to a disorderly process: Accept that there will be feelings 'hurt' regardless of the decision.

Facilitate shared governance and collective decision-making: Any solution regarding financial aid will be resisted if imposed in an autocratic manner