There is a professor who works part-time at a university as a moderator of one of their student groups. He does not teach any actual classes but spends a hugely considerable amount of time with the members of the group outside of class hours.
Is it ethical that he uses his position to scout between those members for a company in which he is either a founder or a senior-level position (currently cannot recall which). He does not offer them jobs but instead constantly pushes and offers them to become "interns" with no pay, bad hours, and extremely heavy workload.
I'm not very well versed in business ethics but this sounds very wrong to me, and something of a conflict of interest.
Would the university have grounds to officially respond to this such as sanctioning him? I know that this professor was previously warned to stop doing so but nothing official/major was ever done despite him continuing to do so behind the administration's back.