THE ANALYSIS OF BUSINESS ETHICS IN THE MANAGEMENT OF
PRIVATE COLLEGE
Kamaludin
Akademi Maritim Cirebon, Indonesia
ARTICLE INFO |
ABSTRACT |
|
Received: |
04-03-2022 |
This research aims to determine and examine how the application of business ethics in the management of private college. This research belongs to a qualitative study based on the type of data and the analysis. Research focus is business ethics, the source of the data is primary data and secondary data. The techniques of collecting data is using interviews, library research and observation. Meanwhile the instrument of the research is the researcher himself. The result of this research is hypothesized that private universities have not applied business ethics in their management, it can be found through the high study cost to the students because they are regarded as the commodity. Private college that should make the balance of the business mission, social mission, and religious mission. There is a new perspective through the opened management of using funds, students or the community will conclude that the study cost of private university is not high or expensive but measurable. |
Accepted: |
11-03-2022 |
|
Published: |
20-03-2022 |
|
Keywords: |
Business ethics, management, private college. |
Corresponding Author: Kamaludin
E-mail: [email protected]
INTRODUCTION
The
development need for education especially in facing the competition of 4.0
industrial revolution, makes people compete to obtain the best quality
education (Nurhasan
et al., 2020; Tri
et al., 2021; Lase,
2019). It becomes a good
expectation and challenges to be committed by the college so that the
students are interested to pursue study to the best quality
college. In this regard, the colleges must be able to
manage educational inputs into a meaningful process in
order to produce outputs (graduates) that are not only
graduates but can also be accepted in society (outcomes).
In
the management of education, the economic element influences the quality
of services that will be provided by colleges to the students (Chandra
et al., 2018). Related to this,
the financial element is the main thing in its
management. However, the real meaning of education is a conscious
effort in preparing students for the future (Roeser
& Peck, 2009; Darling-Hammond
et al., 2020). In this case the
meaning of the word business is business mission and the meaning of in the word
conscious is social and religious mission. It means that business element
of the educational management may not dominate the education process so that
there is a balance between business missions, social, religious
missions then the education can be reached by all levels of society.
Based
on the research conducted by researchers through observation and interviews to
one of student in a private college about financing college, it can be
concluded that students in private college have to pay tuition
more expensive and they required to pay more
for each activity held in order to improve their competency. It
is reasonable if the fees charged to students are not burdensome, but it is
sometimes ignored by the managers of private college because
they think students as a business commodity in earning
income. It is the background that will be examined in this study.
In
this case business ethics must be highly considered, do not let students as a
commodity to produce a mere profit while the meaning of educational is
neglected (Kauppinen,
2014). In education, economic law
indirectly occurs, where an educational institution with a major that
has high demand by the public is offered more expensive
price. On the other hand the educational institution with a major that
has low demand is offered less price. Here the role of business
ethics must be applied.
The
expense is defined as the value of the exchange, cost, hard working for
the benefit. All costs spent are comparable to the service facilities
received. However, it must be systematically measured that good facility
is not a reason for higher education institutions to make the costs more
expensive. Besides, it must be understood that the costs which will be in
charge to the students should be measured through the appropriateness
and propriety. In connection with this, costs are included in the instrumental
input in the education system. Therefore, the implementation
of education which is oriented to the process namely
a transfer of knowledge. Where the instrumental inputs such as
teachers, labor a thorium, library, curriculum, cost, management,
administration processed together with environmental input. In this case
the students who are in a high quality knowledge transfer produces good quality
graduates (Becheikh
et al., 2010; Giuri
et al., 2019).
The
identification of the problem is that private educational institutions impose
high costs on students because they think that students are as business
commodities in obtaining income. Private colleges should be able to
maximize their potential to earn income such as holding seminars, providing
certified training for the general
public, and facilitating language courses for the
general public.
Based
on the identification of the problem above, the researcher provides a
limitation of the problem in order to achieve the expected goals that
include business ethics in the management of private
colleges in Cirebon, whereas the formulation of the problem in this
research is how the implementation of business ethics in
the management of private colleges in Cirebon.
The
purpose of this research is to find out and obtain information on the
implementation of business ethics in the management of private colleges in
Cirebon.
METHODS
The
research belongs to a qualitative research based on the type of data and
analysis. The technique of collecting data is using interviews, literature
studies and observation. The source of data is the primary
and secondary data. Primary data is the data which is
obtained or collected directly in the field by the researcher who
need it. Secondary data is the data that has been derived from the results
of the literature studies. The researcher determines the location of the
research purposively in
Cirebon.
In
this study the population was all students of private universities in
Cirebon. The research sample taken was the Random Sampling model as
many as 50 Private University Students in
Cirebon with a minimum length of study for six
Semesters. The data analysis technique used is by analyzing the data,
interpreting the data and draw conclusions.
RESULTS AND DISCUSSION
According
to Hill
& Jones (2007) stated that the business
ethics is a doctrine to distinguish between right and wrong in order to
give a briefing to the leaders of the company to take strategic
decisions on issues related to moral highly complex. In the
management of colleges, they should prioritize aspects of morality in
the management of the implemented economic education, It
means that not all elements of income are charged to students or in other words
the life of colleges depend on their students. This view is
completely inaccurate and it should be changed immediately so that
the college becomes a financially well-established college and does not make
students the majority income source of an institution.
In
the era of revolution industry 4.0 today, a college should be able
to perform efficiency costs by creating a more effective system in
the management. The system which can change the manual system to a
digitization system both in terms of input, process, and output in the
education system. Through the efficiency and effectiveness, it
is expected that the promotion, registration of new students, administration,
and management will be shorter and faster so that it will make efficiency costs
spent in the long term.
In
the context of obtaining other income from students, colleges can be carried on
their own business, they can be as campus cafeteria, campus cooperation, campus
gardens, organizing campus activities /events in
collaboration with sponsors, and seminar / training / workshop activities.
Campus
cafeteria orientation includes preparing of food and drink with the low
price for campus residents. It has a big potential business value. In
addition, the colleges can rent places to trade both in the form of buildings
or land. This is a source of potential revenue for private colleges. In
the management of the campus cafetaria must be placed
in a strategic place so that it is easily accessed by all campus
residents. It must be well-designed, clean, up-to-date, and comfortable so
that buyers can get satisfaction. In addition, variations in food and
beverages should be considered properly so that the buyers have many choices of
food and drinks available with affordable price.
In
this case the campus cooperation has orientation activities including
providing the needs of campus residents either in the form of uniforms,
stationery, books and other needs. In relation to the needs of school
residents, the campus cooperation can also provide primary commodity and
manage savings and loan business activities for campus
residents with low interest rates compared to other cooperation or
state-owned banks. The savings and loan business activities are intended
for lecturers and education staffs. It has a potential to
be developed as a source of income for private colleges.
Related to this, private colleges that have large vacant land or empty space can
use it for campus gardens by growing plants that have economic value such as palawija, vegetables, or herbs. It has the
potential to increase the income of private colleges, but it also can empower
citizens who exist around the campus in order to manage the campus gardens.
Besides that too, private colleges must be able to maximize every activity or
events that attract the college community by carrying out its
activities or events in collaboration with sponsors. It has a
high potential value of income. In terms of costs, by being supported by
sponsors, It is expected that the activities can run
properly due to the sustained funding from sponsors. On the revenue side,
private colleges can get the benefit from excess funding activities or events.
The activities/ events that can be conducted are like walking, healthy
gymnastics, sports competitions, performance of music or others.
Seminar, training,
or workshop, with funding from the participants has a potential value of
income for private colleges. The remain of the budget from seminar,
training, or workshop is income derived
from private colleges. In conducting seminar, training or
workshops held by private colleges, they must take
interesting themes and follow the latest developments and invite competent
speakers and experts in their fields.
The private colleges must
be innovative and creative in managing the operational
colleges (Ghosh, 2014; Nonet et al., 2015; Serdyukov, 2017). The operational activities of private colleges can survive
and still exist if they are supported by the good management and the strong
finance. Funding
side is supported by the income of private colleges that the
most income obtained
from the lecturing cost which is paid by students. In the
other side, that
needs to remember the
essence of the operational activities of the colleges is the balance of the
business mission, the social and religious missions, which means that in this case
the business mission does not become unimportant but the proportion is not
more dominant than social and religious mission. This is intended to the essence of education at
the colleges can
be achieved and felt the
beneficial appearence for the community.
In
carrying out the operational
activities, the colleges must pay attention to the business ethics in doing. Several things that need to be considered
in order to do business ethically are behaving honestly in carrying out the business activities, obeying the values system, and consistent
between what is done and what
is said. Being
honest means we produce the graduates (output) as well as the quality standards and as
appropriate as the conditions required by the institution. In
this case, it can be applied through the existance of the quality standard of
the instrumental input includes
the teachers, the curriculum
standard, and the
educational resources standard. Besides that, the learning process which has a good
quality as suitable as the national minimum standard that based on the digital
should have the standards on the application so it will graduate the competent
students in the society (outcome) both socially and economically they
have higher competence than average one. The Outcome can be
the comparison of the cost incurred. More good quality of outcome in
the education system, it is increasingly considered the appropriate costs
incurred by the parents / the guardians of students.
Private
colleges must provide the best services for all students (Moshe
Sharabi, 2013; Truong
et al., 2016; Chui
et al., 2016; Sibai
et al., 2021). The costs which are
paid by students must be
proportional to the service facilities recieved that can be called as giving the mutual benefit values, then it can prevent the losses felt by students and
the transparency for using the funds. This can be implemented by tertiary institutions by
applying transparency in every activity that is carried out in connection with the funds raised from students. It
should be noted that the funds raised from students are one form of the funds raised from the community, so it needs for reporting the use of the funds that are clear as a form of
accountability for using the funds from the society. The form of transparency is the systematic report that is
published both on the campus� online sites and through the printed media. This transparency
will give certain credibility from the public to the private colleges and minimize the negative assumptions about the fund management which
is carried out by private colleges.
The private
colleges need to work hard to set an example and carry out the positive things that are
conveyed. In holding the business activities, it will become a benchmark
in the daily
actions and also in the decisions made. It should be applied by the private colleges to execute any programs that
are implemented consistently and thoroughly with the allocation of
funds. The colleges must have the motivation to implement the realistic mission by setting each
budget for each program in accordance with the source of revenue and
expenditure that has been set in the budget plan. All the programs of
the private colleges have to be known the nominal costs so that students see the amount of budget needed for
any educational program that will be conducted.
Ebert &
Griffin (2009)� told that the ethics
is a belief about right and wrong actions or good and bad actions that influence
to other things. Ethic has a
quite close
connection with
human behavior, especially the behavior of business people, whether
behaving ethically or behaving unethically. RW Griffin said that the ethical behavior is the action which based on the social
norms and generally related to the
useful or harmful actions. In this
regard, the colleges must uphold the value of the business ethics in the implementation of the economic principles
of education which
carried out. Business ethics is formed as the reasonable
costs, the commitment
of
process standard, the quality
of service to students, and the transparency of reliable information so it will be clear between the obligations and the rights among the teachers, the education staff, and the students.
This
business ethics must be able to be implemented by private colleges consistently so that the behavior in according
to the social norms can be created (Burton
& Goldsby, 2005; Nerkar,
2016). Inconsistency in the
implementation of the business
ethics can make the bad
views coming towards the private colleges from the
community. The expensive
costs which is felt by students, in the business ethics of education is less appropriate in the students� point of view or in the public because there is not
only the business mission, but
also the education
has the
social and religious missions. Relating to
this, the private colleges has to clarify the data that costs are considered expensive or high by
giving the clear and
details costs used, business ethics like this one that should be a habit. There will
be
a new perspective through this opened relation connecting
with the use of funds, the students or the society will conclude that the costs
incurred are not high or expensive but measurable.
Business
activities carried out as a work of a person, or activities of some people, or activities of an organization. In applying the business activity of
the private colleges
must be based on the
principles of business ethics (Hasnas,
2013; Kumar
& Baker, 2020). The principles of business
ethics are the autonomy
principle, the principle of honesty, the principle of justice, the principle
of mutual benefit, and the principle of moral integrity. The principle of
autonomy is the
humans� competence in thinking, making decisions and acting based on their
awareness. The
basic of this principle is doing something that considered is good. This principle is based on the awareness means
that all actions taken are the orientation
of the field which is under the control and understand all the risks of the decisions made. It taken by the leaders of the private colleges have the potential to
advance the institution or even make the institution worse off. In
this regard, the views on social and religious missions about the education
system must be fully understood by every leader of the private college so that the decisions taken are
not merely business oriented then the highest goals
of education can be achieved.
In
addition, private college must know well about the business run. In holdingthe business, private college must understand very well
the essence of education which is a conscious effort made in
preparing the students
for the future. The essence of education has become a moral foundation for
the private
college
management, the
education is not a practical business activity but it isthe social activity which contains
the transfering process of knowledge and the economic process of education.
The
principle of honesty is a basic principle in the management of an organization. Doinghonesty
will bear the
trust. Connecting with this principle, the facilities
are offered by private college while promoting should be conducted as appropriate as when the learning activities
implemented. The opinions
of the society and the studentsabout the inhonest
reality will ariseif the
offered things are not approved.
The
principle of justice is an act of treating something objectively then it can be
justified. This principle can run for
treating the teachers and the education
staff fairly without looking at the social status, the family status, or the emotional closeness. Besides that, by placing the teachers or education staff has to be suitablewith
the job description, this is the existence of the concept in thejustice principle.
In
the principle of justice, all parts which involved in the implementation of the education process in the
college may not get disadvantages. In this case there
must be matching
between the implementation of rights and the implementation of obligations for each
part involved.
The
principle of mutual benefit is a principle that forms the base of every part involved in the
education process of the college to obtain satisfactory results. This is
reflected by the students
who getthe benefitbecause of the attendance level of the good teachers, the teachers and the education staff getting the
right to pay salaries according to the performance carried out, then the
college gains the public trust forthe quality of the learning
process in the college.
By the
principle of mutual benefit, a conducive working situation will be appeared in the college. The obtained benefits are a form of
satisfaction to the activity implemented. Beside
that, through the principle of
mutual benefit will increase the level of concern in the interaction
process of the education.
Moral
integrity is an attitude interpretation of each part involved in the implementation of education at private colleges. The moral integrity can
be held by
always maintaining the good name of private collegessuch
as maintaining attitudes in
behavior, carrying out some duties in responsibility, transparency in managing funds in the colleges, and developing
the college towards the sustainable
progress.
CONCLUSION
The competition of industrial revolution 4.0, making the people race to get
the best quality of
education. It becomes a good expectation
and challenges that must be
faced by educational institutions so that students are interested in continuing
their studies at the best quality colleges. In the implementation of education, the economic
element influences the quality of services that will be provided by educational
institutions to students. Education is a conscious effort in preparingthe
students for
the future. In this case the meaning of the word business is business
mission and the meaning of the word conscious is social and
religious mission. So the tertiary institutions must be managed
equally between business mission, social mission, and religious mission so that
the essence of education can be achieved.
The
private colleges should prioritize the aspects of
morality in implementing the economic management of education, it means that
not all elements of income in charge to students or in other words called that the college's life depends on the
students. This view is
entirely inappropriate and should be changed soon that the private colleges are stable at
the finance then they do not make the students become a source of income like
the most of the private colleges. In the context of getting other incomes
than getting from the students, the private college can build some companies,
the companies belongs to the own businesses such as canteen, cooperation,
garden, campus organizing / events by cooperating with sponsors, and
seminar / training / workshop activities.
There
needs to be repaired basically in the funding governance of the private
colleges, private colleges must behave honestly in running the business,
it can be realized through the establishment of quality standards in
instrumental input standard includes teachers, curriculum standards, and
educational resources standards. Besides that, the learning process which
has a good quality as suitable as the national minimum standard that based on
the digital should have the standards on the application so it will graduate
the competent students in the society (outcome) both socially and
economically they have higher competence than average one. The Outcome can
be the comparison of the cost incurred. More good quality of outcome
in the education system, it is increasingly considered the appropriate
costs incurred by the parents / the guardians of students.
In
this relation, the business ethics must be consistently implemented by
private college so it will appear the behavior that conforms to the social
norms. The lack of consistence in the implementation of business ethics
can show the unfavorable views from the society toward the private
college. The high cost has to be paid by students, found on the business
ethic of education is inappropriate seen by the students or the public because
of considering about not only the business missions, but also the education has
other missions are social and religious missions. So that the colleges
must clarify the data that the costs are considered expensive / high by
the students with giving the clear and details of the allotment incurred, this
is called as the business ethic that should be a habit. There will be a
new perspective through this opened system on using the funds, the students or
the community will conclude that the costs incurred are not high or expensive
but measurable. The business ethics can
be implemented optimally based on the autonomy principle, the
principle of honesty, the fairness, the principle of mutual benefit, and the
principle of moral integrity.
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terms and conditions of the Creative Commons Attribution (CC BY SA) license (https://creativecommons.org/licenses/by-sa/4.0/).
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