Criticism
ETS has been criticized for being a “highly competitive business operation that is as much multinational monopoly as nonprofit institution”. Due to its legal status as a non-profit organization, ETS is exempt from paying federal corporate income tax on many, but not all, of its operations. Furthermore, it does not need to report financial information to the Securities and Exchange Commission, though it does annually report detailed financial information to the IRS on Form 990, which is publicly available.
In response to growing criticism of its monopolistic power, New York state passed the Educational Testing Act, a disclosure law which required ETS to make available certain test questions and graded answer sheets to students.
Problems administering England's national tests in 2008 by ETS Europe were the subject of thousands of complaints recorded by the Times Educational Supplement. Their operations were also described as a "shambles" in the UK Parliament, where a financial penalty was called for. Complaints included papers not being marked properly, or not being marked at all and papers being sent to the wrong schools or lost completely. It has even been suggested that the quality of service is so poor that the Department for Children, Schools and Families (formerly the Department for Education and Skills) might not be able to publish the 2008 league tables of school performance. However, the contract was ended by "mutual consent". The UK government asked Lord Sutherland to conduct an inquiry into the failure of the 2008 tests. The report included in its main findings:
• primary responsibility for this summer’s delivery failure rests with ETS Global BV, which won the public contract to deliver the tests;
• ETS’s capacity to deliver the contract proved to be insufficient. A lack of comprehensive planning and testing by ETS of its systems and processes was a key factor in the delivery failure;
In 1983, students of James A. Garfield High School in East Los Angeles, California, achieved unexpectedly high exam results on the ETS Advanced Placement Exam. ETS implied that the students may have cheated to obtain such results based on common mistakes across different exams. The students were required to prove their abilities and innocence by taking a second exam, which they did successfully.
Americans for Educational Testing Reform (AETR) claims that ETS is violating its non-profit status through excessive profits, executive compensation, and governing board member pay (which the IRS specifically advises against). AETR further claims that ETS is acting unethically by selling test preparation materials, directly lobbying legislators and government officials, and refusing to acknowledge test-taker rights. It also criticises ETS for forcing GRE test-takers to participate in research experiments during the actual exam. It has also come under criticism for paying its part-time employees, most of whom are drawn from the less than 10% of the U.S. population with graduate degrees, a modest $20 an hour (with no benefits), to grade the essay component of their standardized exams.
Read more about this topic: Educational Testing Service
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