A Pedagogical Primer: The Ethics of Credit Card Reward Programs

ABSTRACT Business leaders are challenged to balance the profit‐maximizing demands of capitalism with the ethical expectations of society. Commonly, profit is the more powerful force. As a result, society is awash with ethical lapses; corporate misconduct is on full display. This paper presents a pedagogical approach designed to sensitize students to that challenge, and to demand serious self‐reflection. The ethical dilemma presented in this paper highlights the aggregate shift of the cost of Credit Card Reward Programs from higher educated, richer, nondiverse populations to lower educated, poorer, minority populations—a business practice which is legal but ethically questionable. To reinforce student learning, a teaching note is included that explores the dilemma. The paper also examines the intransigence of unethical behavior and methods for teaching business ethics.