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Teaching Business Ethics Through St. Francis Inn’s Real-World Challenges

Amid the bustling urban landscape of Philadelphia, the St. Francis Inn has stood as a beacon of hope and community support. Nestled in the heart of Kensington, a neighborhood known for its challenges, this soup kitchen has been serving those in need for decades.

Known for its history of pervasive street drugs, Kensington is easily accessible via main transport routes like Interstate 95 and the Market-Frankford train line. These factors, combined with a landscape dotted with abandoned buildings, have historically made it a hotspot for illicit activities.

Founded by Franciscan friars in 1979, St. Francis Inn Ministries provides sit-down meals for thousands each year, assisting those stricken by poverty, homelessness, and substance use disorder. Beyond meals, the organization runs Marie’s Closet, offering free clothing and household items.

Over the years, shifts in Kensington, such as gentrification, rising housing prices, and increased policing, have posed new challenges for those in poverty. These changes also impact St. Francis Inn’s operations, prompting discussions about potentially relocating or expanding its reach with a mobile unit.

As a professor at St. Joseph’s University, I saw this as an opportunity to engage my students in real-world decision-making. Through a Management Honors Capstone Seminar, students explored this scenario, culminating in a published case study, “Dealing with Change in Kensington, Philadelphia: The Case of Saint Francis Inn.”

Seven people wearing aprons and holding stand with heads bowed

Volunteers at the St. Francis Inn pray together before serving a meal on July 19, 2021.
Spencer Platt/Getty Images

A Real-World Business Case

In my seminar, which is part of a strategic management curriculum, students apply the Harvard case study method. They evaluate cases using strategic management theories and propose actionable solutions, testing their hypotheses through a detailed plan.

What makes this study particularly compelling is its focus on the vulnerable populations of Philadelphia, allowing students to apply business strategies to real social justice issues.

Ethical Decision-Making

In exploring solutions for St. Francis Inn, students utilize two frameworks: the resource-based view and “formal moral theory.” The former helps identify unique resources and capabilities, while the latter guides ethical decision-making.

For example, utilitarianism allows for assessing decisions based on societal net benefits. In contrast, Rights theory ensures respect for individual dignity. These theories help students propose morally sound strategies for the Inn’s operations.

A group of uniformed police stand on an empty commercial street behind metal gate and yellow police tape

Police close down a section of Kensington Avenue to clear a homeless encampment on May 8, 2024.
Spencer Platt/Getty Images

The students’ task is to align St. Francis Inn’s capabilities with the needs of its stakeholders, from the homeless and impoverished residents to city officials and new neighborhood inhabitants. This exercise in balancing business acumen with ethical considerations fosters essential skills for future business leaders.

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