For-Profit Colleges in the US: A Morally Bankrupt Sector?|Business Ethics|Case Study|Case Studies

For-Profit Colleges in the US: A Morally Bankrupt Sector?

            
 
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Case Details:

Case Code : BECG117
Case Length : 19 Pages
Period : 2008-2010
Organization : -
Pub Date : 2011
Teaching Note : Not Available
Countries : US
Industry : Education

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Putting Profits over Public Good? Contd...

The report also addressed several other questions that had been plaguing the for-profit education sector for a long time such as student enrollments and the methods these colleges were adopting to attract more students.

On release of the report, the shares of for-profit education companies in the US, including Apollo Group Inc.5 (Apollo Group), DeVry Inc6 (DeVry), Education Management Corp7, and Corinthian Colleges, Inc.8 (Corinthian), fell significantly. "GAO's findings make it disturbingly clear that abuses in for-profit recruiting are not limited to a few rogue recruiters or even a few schools with lax oversight.

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

To the contrary, the evidence points to a problem that is systemic to the for-profit industry,"9 said Tom Harkin (Harkin), Chairman, US Senate Health, Education, Labor, and Pensions (HELP) Committee.10

Excerpts >>


5] Based in Phoenix, Arizona, Apollo Group Inc. is one of the biggest for-profit education companies in the US. Founded in 1973, Apollo is the parent company of the University of Phoenix.
6] DeVry Inc. is one of the largest publicly-held, international, higher educational organizations in North America. It operates several for-profit higher education institutions, including DeVry University, Ross University, Carrington College, Western Career College, and Chamberlain College of Nursing.
7] Based in Pittsburgh, Pennsylvania, Education Management Corporation is a leading private operator of post-secondary educational institutions, primarily in the US.
8] Founded in 1995, Corinthian Colleges, Inc. is a publicly-traded corporation based in Santa Ana, California, that owns and manages a collection of for-profit colleges in the US and Canada.
9] Emma Ashburn, "U.S. Senator Lashes Out at For-Profit Education," www.reuters.com, August 4, 2010.
10] The US Senate Committee on Health, Education, Labor, and Pensions (HELP) looks after matters relating to health, education, labor, and pensions.

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