The purpose of this study was to examine how moral reasoning develops for 236 students enrolled in either a diversity course or a management course. These courses were compared based on the level of diversity inclusion and type of pedagogy employed in the classroom. We used causal modelling to compare the two types of courses, controlling for the effects of demographic (i.e., race, gender), curricular (i.e., previous course-related diversity learning) and pedagogical (i.e., active learning) covariates. Results showed that students enrolled in the diversity course demonstrated higher levels of moral reasoning than students enrolled in the management course. In addition, results show that previous diversity courses as well as current enrolment in a diversity course contributed to moral reasoning gains. Implications are discussed. (Contains 5 tables and 1 figure.)