Capella University Online University Corporatization corruption marketing scheme students customers bursar corporate financial officer Minneapolis Minnesota

Corporatization corruption Capella University online university marketing scheme students as customers bursars as corporate financial officers

Consumerism is rising and contributing to online universities adopting corporate models, cutting costs and seeking profit making opportunities with other corporations. Students are referred to as customers buying into the marketing scheme of the school. The profit motive has spread through the entire university as other corporate entities are offered the right to sponsor courses and programs and to advertise within the internet campus community. Critics say that the drive to make profits for stockholders and the CEO encourages the university to churn out as many graduate/customers as possible. ( APA Online, 2008)

In 2007, Capella ranked ninth in the nation for marketing capitalization among for-profit universities. Capella's CEO also ranked ninth in Minnesota for financial compensation, annual salary being $417,000 and bonus compensation being $11,148,000 for the year of 2007. Capella Chief Financial Officer's annual salary in 2007 was over $1,000,000 not including bonus. (Star Tribune, 2008). Corporate members of university boards believe year-end bonuses will motivate faculty to hit benchmarks in customer enrollment or grant/corporate sponsorship money brought in to the university. Faculty members feel like the Capella Tower is too insulated from reality and are suspicious of corporate motives for decision making (profits vs. customer care) (APA Online, 2008).

D.B., Interim Dean of Capella's Harold Able School of Psychology states that their student/customers don't mind Capella's lack of accreditation with APA. They are going to practice in states that don't require graduation from an APA accredited program for licensure. So, she is saying that the PhD level Psychology graduates will not be able to gain licensure or jobs in the field after spending anywhere from $60,000 to $150,000 on financial aid to gain their degree. (APA Online, 2008) And what states do not require PhD licensure to practice? Is she talking about the U.S.?

The university student evolving into a customer worries many university professors. If the customer does not like the marketing product they are offered, they can take a walk to another university. This may be why there is only a 6% to 9% graduation rate at Capella. (Accreditation website) The growing use of adjunct faculty, now 68%, means they lack tenure and protection from corporate corruption. They will not advocate or be there for their students because they could be fired. Capella actually states in their 2009 learner's handbook no professor is allowed to give any student a recommendation, which is necessary for him/her to get a job or an internship in their new career field. (Capella Handbook, 2009; APA Online, 2008)

A medical student researcher uncovered life threatening side effects in the drug she was testing and faced pressure from the corporate funder of the research project to suppress her findings, because it would hurt corporate profits. Her university was reluctant to jeopardize the large corporate donation to their university, so they disenrolled the medical student without due process. After a lengthy expensive lawsuit, the medical student was exonerated from university charges, but not re-enrolled so she could finish her studies and graduate. She not only had a quarter of a million dollars in financial aid debt to pay back to the government and the huge amount of court costs as well, with nothing to show for it. She had to start completely over at a brick and mortar university and go in debt even more. And she had done nothing wrong except try to protect consumers from a life or death medical situation. We are in serious trouble if corporations can suppress knowledge, truth, bright, intelligent students, and innovative ideas just because the sponsor of a university has a conflict of interest with profit making. Remember, a corporation's bottom line always has to involve profit. (APA Online, 2008) And how many corporations are sponsoring Capella programs at this time?

In summary, please consumers beware! Don't fall for their marketing scheme. It is a money mill for Capella corporate executives to gain heft bonuses and salaries. The consumer gets to pay big bucks for what they think is an education to get ahead in a new career. Capella does not guarantee there will be internships or jobs waiting for you if you are one of the 6-9 of 100 students that actually do get to graduation. What the Capella consumer does not realize is that they have no due process, no rights to their educational materials housed at Capella, no advocacy there at all. The professors cannot help because they will get fired. You are on your own to muddle through somehow.

So, take the walk to a local brick and mortar university where they honor due process, tuition is probably cheaper, professors can give recommendations, and they help set you up with internships in your local area of residence.

Minneapolis, MN
Cincinnatti, Ohio
U.S.A.