An arrangement in which local businesses team up with schools hiring students to perform jobs that use Knowledge and Skills taught in their school classes is called a

Cooperative Program

Explanation:

Cooperative Program is a type of program that enables people or individual that are into local businesses to join hands or team up with schools by employing or hiring the schools students in which they have teamed up with to carried out jobs or perform jobs that basically make use of the knowledge and the skills of what the students have learnt and have been taught by their teachers in the classroom reason been that this local business believes that this student have the essential knowledge and skill about the job that will enable them to excel and to do better when employed or hired.

lives by a moral and ethical code