executive education for responsible business

8/14/2019 Executive Education for Responsible Business

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Executive education forresponsible business

Including 2007-08Beyond Grey Pinstripesbusiness school ranking

It's a whole new world

Business education special report 2007 www.ethicalcorp.com

Produced in association with the


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Contents

4 IntroductionEuropean Academy of Business in Society

6 MBAsDeveloping fully-rounded leaders

Europe

8 Masters

Focus on specialism

10 Asian studentsTeaching the tigers

India

13 Ethics in educationPlaying catch-up

The student view

14 Graduate recruitmentWhat bosses look for

16 Graduate profileAn MBA just the first step

18 Student activistsLooks good on the CV

19 Dean profileAndrew Pettigrew, Bath Schoolof Management

Specialisation

20 Boutique campuses

Small is beautiful

22 Bigger schools

Mainstreaming ethics

Executive education

25 Decision-making

Learning from experience

27 Board directors

Teaching for the top

29 Soft skills

For diverse and complex problems

30 Bob Stilliard, Ashridge

Gaining the right new skills

31 Harvard Business School

A students review

32 Business schools ranked

Beyond Grey Pinstripes 2007-2008

34 The last word

Business educations future

Ethical Corporation Education special report Contents

EditorJohn [email protected]

Ethical Corporation writersOliver BalchRajesh ChhabaraNick JonesLisa Roner

Production EditorIan Welsh

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Ethical Corporation Education special reportIntroduction

Globalisation continues to fuel unpar-alleled economic growth, but itsopportunities have come with risksattached. Climate change, energy security,pollution, poverty and water scarcity are

just some of the urgent challenges facingtodays corporate and political leaders, andtheir communities.

Companies are now expected to shareresponsibility with governments fortackling issues that previously they wouldhave ignored in their primary pursuit ofprofit. Confronting global problems fromHIV/Aids to human rights has become away for big firms to repair reputations thathave declined sharply as annual revenueshave soared.

In a recent FT/Harris poll, almost 40% of

UK respondents expressed zero admirationfor senior executives in charge of majorcompanies. An international majority ofthose surveyed said that globalisation hadnot been beneficial for their country.

Companies now realise that they neednew strategic and operational approachesto manage their role in society. Superiorperformance in this regard can bring signif-icant competitive advantages and financialreward. Failure to adapt can threaten thesurvival of the firm.

Management shortfall

Extractive industry firms such as BHPBilliton, Rio Tinto or Exxon say that theshortage of managers able to display sensi-tivity to local demands in unstable operatingenvironments threatens to permanentlyundermine large-scale investments.

In July a report from McKinsey, based oninterviews with almost 400 chief executives,found that more than nine out of tensurveyed said their companies wereaddressing more environmental, social andgovernance (ESG) issues than five years agoto improve competitiveness.

Research from Goldman Sachs across sixsectors has found a strong correlation

between ESG leadership and financialperformance. Companies with superiorpolicies outperformed the general stockmarket by 25%, and their peers in 72% ofcases.

The companies and academics inter-viewed in this special report state theirconviction that tomorrows leaders willneed social and political skills if they are to

be successful. These skills will be neededjust as much, and in some cases even more,than traditional business competencies suchas accounting and finance.

Future managers and executives willhave to integrate new factors, uncertaintiesand views into their decision-makingprocess. They will need a different set oftools to cope with complex operating envi-

ronments. Global companies are reviewingtheir human resources strategies andinternal management developmentprogrammes to better address currentshortfalls. In this context, corporate univer-sities as well as business schools have agrowing and vital role.

This presents an enormous challenge and opportunity for the entire field ofmanagement development, both academicinstitutions and in-company trainingproviders. Companies are desperate formore and better knowledge in the work-force, with business schools its most

important supplier.Companies must improve at identifying

these needs and communicating them tobusiness schools in particular. Without suchexchanges, the content of executive educa-tion will never address their key priorities. A2006 EABIS research report from Ashridgeproposed a framework for companies to dothis, and do it better.

Practical understanding is thereforeneeded from faculty on these issues. Infuture business schools will have to look to

blend core faculty with reflective practi-

tioners, developing new career paths,knowledge models and teaching content.

The overarching question is: can they ulti-mately deliver the goods?

The forecast is optimistic, if uncertain. Atthe MBA and masters levels, corporateresponsibility is moving consistently intomainstream disciplines through more inno-vative approaches and courses. In parallel,EABIS has worked with the UN GlobalCompact to shape and launch the Principlesfor Responsible Management Education toinspire international change.

Moreover, many EABIS member schoolsnow work closely with multinationalcompanies to design tailored executiveprogrammes on ESG issues. Excellence in allof these areas can become a competitiveinstitutional advantage.

Carpe diemAssociations such as Net Impact havespread rapidly on campuses worldwide,reflecting increased student demand foraction. Encouragingly, social entrepreneur-ship is pushing its way into the curriculum,as young talented business executives lookto balance professional success withpersonal responsibility.

More widely, we are seeing corporateleaders cross over into business schools,

bringing practical insights and perspectivesto complement traditional academicstrengths. Business schools are opening

themselves up to non-traditional collabora-tions and partnerships with business andother stakeholders.

Executive education programmes maycurrently struggle to keep pace with corpo-rate progress. However, academic reform andinnovation are on an upward curve, whichsocietal pressures will surely accelerate.

This supplement is a timely initiative andreminder that change is indeed taking placein executive education. Whether thischange is sufficient, we leave to your indi-vidual judgment.

We hope that you find this report a stim-ulating, thought-provoking read. I

21st century management

Learning to lead

By Gilbert Lenssen and Peter Lacy, European Academy of Business in Society

Todays business leaders need skills that cover politics,society and the environment. It is up to business schoolsto provide these Training leads to competitive advantage


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Sustainabilitymanagementis one of thebiggest businessopportunitiesto come along

in a long time

From new hires and mid-level managers to thec-suite or top-level management chiefs andeven board directors, ethics education is garneringan unprecedented level of attention in corporationsaround the world. Leadership is taking on new

meaning. Up and coming executives are beingrecruited as much for their soft skills in teamwork,communication, sustainability, corporate responsi-

bility and ethics as they are for their financial andstrategic prowess.

In fact, a 2006 survey by the Graduate Manage-ment Admission Council found that 40% ofemployers place a strong emphasis on such softskills in the selection and hiring process. But asurvey by recruitment firm Egon Zehnder revealsonly 20% of international corporate executives

believe an MBA prepares people for real lifemanagement.

To meet the growing demand for more well-

rounded leaders, business schools are respondingwith a broad range of new programmes andapproaches to train current and future corporateexecutives.

It is the responsibility of MBA programmes toimprove the practice of management one student ata time by helping each one maximise his or herpotential for future leadership roles, says Sim Sitkin,the head of North Carolina-based Duke UniversitysCenter of Leadership and Ethics (COLE).

Students must see every decision in the broaderethical context, and it is the obligation of MBAprogrammes to teach students to incorporate ethics

and leadership into their roles in the workplace, hestresses.

It is an outlook that is quickly becoming the rulerather than the exception at business schoolsaround the globe.

Since the Enron scandal, most business schoolshave beefed up the teaching of ethics and related

topics, often under the banner of leadership. Yalehas shaken up its programme to include ethics aspart of every course, because it says it found agrowing disconnect between how business is taughtand how careers are developing.

In Europe, INSEAD says its goal is to become aleadership institution and IMD in Switzerlandsays it is retooling to focus on leadership qualitiesand international experience.

Integrating curriculaMany schools, including the University ofMichigans Ross School of Business, are incorpo-rating immersion and simulation techniques in their

programmes to give students hands-on experienceat making ethical decisions long before they reach acorporate environment.

According to recent research sponsored by theCenter for Business Ethics at Bentley College inWaltham, Massachusetts, and the Ethics ResourceCenter in Washington DC there has been a five-fold increase in the number of stand-alone ethicscourses at top-ranked business schools since 1998.

Laura Hartman is a professor of business ethicsand legal studies at DePaul University, Chicago, andone of the researchers on the project. She says MBAprogrammes are also quickly migrating from issues-

based, stand-alone courses to a more integratedfocus on individual and corporate ethics that

Business schools

Weaving ethics into business education

Future corporate leaders will need more rounded skills than their predecessors and the worldstop business schools are responding by offering courses in corporate responsibility, says Lisa Roner

The US: homeof the MBA

The Masters of Business

Administration (MBA)

degree emerged in the

US at the start of the last

century, in response to

demand from companies

that wanted precise

knowledge of how

to run a business.

The US remains the

worlds biggest MBA

market: over 1200

programmes are on

offer at business schools

across the country.

But Europe is catching up

fast. The number of MBA

programmes in Europe

grew from 181 in 1999

to 658 in 2006.

Ethical Corporation Education special reportUS MBAs


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includes topics such as corporate responsibility andsustainability spread liberally throughout thecurriculum.

Nearly 55% of schools say they offer such an

integrated curriculum. At RSM Erasmus inHolland, a new programme called Living Manage-ment Assignment integrates six functional areas finance, marketing, strategy, operations, humanresources and entrepreneurship with ethics andsustainability, on which 25% of the students gradeis based.

Hartman and her colleagues surveyed the Finan-cial Times 50 top-ranked business schools, and ofthe 44 that responded, more than 84% say theyrequire students to take courses that address one orall of these topics. Eleven of 44 require MBAstudents to study ethics in a stand-alone course,while 52% of the schools surveyed say they requirethat ethics be taught in some combinationwith either corporate responsibility, sustainabilityor both.

The push is being supported by a high level ofinstitutional backing in the form of centres forethics, corporate responsibility and sustainabilityalone or in combination, Hartman says. Nearly 66%of the schools surveyed by the group have a centrededicated to at least one of the three topics. Andmany of those that do not have a centre, like theSchulich School of Business at York University inToronto, still have strong programmes withendowed chairs and professorships, she says.

Kellie McElhaney, executive director of theCenter for Responsible Business at the Haas Schoolof Business at the University of California, Berkeley,

believes todays business schools have the responsibility and are seizing the opportunity to create a

new type of innovative business leader. Thesegraduates are both knowledgeable about traditionalMBA subjects and strategic about the social andenvironmental issues that are increasingly affecting

businesses and their survival, value and ultimatesuccess.

Even small schools are having a big impact. ThePresidio School of Management in San Francisco isone of a handful of schools offering sustainable orgreen MBA programmes. Although by mid-2007 it

boasted only 56 graduates, enrolment for Presidios2007/08 class was by that stage already around 200.

Presidios provost, Ron Nahser, says sustain-ability management is one of the biggest businessopportunities to come along in a long time anddemand is already high for the schools students. Inthe first semester of 2007, more than 100 Presidiostudents worked on 30 projects for companies.

New thinking at the topA new laboratory for sustainable business has alsoopened at MIT. The programme will use scientificstatistics and case studies to teach students aboutthe effects of global warming, pollution and otherenvironmental factors on business.

Some schools are even offering dual degrees orconcentrations in sustainability, including theUniversity of North Carolinas Kenan-Flagler Schoolof Business.

Perhaps the most refreshing trend, Hartmansays, is the increasing interest among non-ethics

faculty in integrating ethical discussions into theircourses.

The Association to Advance Collegiate Schools ofBusiness (AACSB), the leading accrediting body for

business schools, she says, is offering sold-outseminars on teaching businessethics. More and more traditionalcore subject faculty are clamouringto be effective at introducing ethics,corporate responsibility and sustain-ability topics into their courses.

Michael Hoffman, executivedirector of the Center for BusinessEthics at Bentley College, and a

collaborator of Hartmans, says thetrend to integrate the three themesthroughout the curriculum willhelp them become habitual andpart of the thinking of a businessexecutive.

The developments at top-tierschools, says John Fernades, presi-dent and chief executive of theAACSB, reflect trends unfoldingacross the broader landscape of

business education, and he predictsthat the focus on ethics is sure to

pay future dividends in the corpo-rate world. I

It is the obligationof MBAprogrammes toteach students to

incorporate ethicsand leadershipinto their rolesin the workplace

Useful links:

www.aacsb.edu

www.gmac.com/gmacwww.ethics.orgGraduates now have a better ethical understanding

What does anMBA involve?

MBA courses are a businessschools signature offering.

Core modules typically cover:

accounting

marketing

finance

strategy

operations

Other modules address the

skills required of modern

global leaders:

macroeconomics

international politics

Extra classes work on the

soft skills of future

managers:

leadership

personal development

These help individuals

develop judgement and

discover personal values to

guide their graduate careers.

Ethical Corporation Education special report US MBAs


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Other section content:

10 Asian expansion

13 Indian students

When Kaarina Dubee was looking around for amasters course, she had one priority area inmind. A project leader at Volvo, she wanted toincrease her understanding of corporate citizenshipstrategy development and implementation. Her

search led her from her base in Sweden to theUniversity of Bath in the UK.

Bath has been running an MSc in responsibilityand business practice for a decade. Structuredaround eight week-long workshops over two years,the course draws on expertise developed across theUniversitys graduate courses.

Kaarina credits the course content with broad-ening her perspective. Given the curriculum titles,that comes as no surprise. The timetable includessubject areas such as new economics, humanityand enterprise, globalisation and the new contextof business and self and world futures.

She also maintains that the practical bent of the

course enabled her to start making concrete applica-tions in her day-to-day job from the outset. Bathcalls the approach action research a process ofcontinuous, participative learning aimed atincreasing student awareness of their perspectivesand behaviour.

Innovative coursesThe MSc applies to the interaction betweendifferent challenges because there are so manythings that you cant solve within one frame ofmind at the moment, explains director of studies

Judi Marshall.

The University of Bath is not the exception it oncewas. Across Europe, more and more universities and

business schools are developing innovative mastersprogrammes. Traditional management education is

being supplemented with specialist courses onsustainability, corporate social responsibility, envi-ronmental management and other emerging

themes.Most business schools across Europe are

increasing the amount of coverage they give tothose areas, says Jonathan Slack, chief executive ofthe UKs Association of Business Schools. Thoseleading the way tend to come from western andnorthern Europe, he adds, although there arenotable exceptions.

Change catalystsSo, what is driving the change? The primary factoris undoubtedly the awareness among bothrecruiting companies and students that social andenvironmental issues are of mounting importance.

There is a clear commitment in the corporateworld to take social responsibility seriously and thatin turn triggers greater interest in businessprogrammes that cover it, Slack says.

And business education is responding in kind.The Association of Business Schools, for example,last year drew up criteria for the teaching of corpo-rate responsibility in the UK. The standards are nowused to appraise providers of business managementeducation.

Expanding the focus to mainland Europe, thepush to integrate corporate responsibility intograduate business teaching received a major boost

in July. Under the Global Compacts new Principlesfor Responsible Management Education, academic

Masters programmes

Flexible courses and more focusedteaching at Europes schoolsBusiness schools that put corporate responsibility teaching at the core of their courses are nowat a competitive advantage. Oliver Balch explains why

Ethical Corporation Education special reportEurope

Traditionalmanagementeducation is beingsupplemented withspecialist courseson sustainability,and otheremerging themes


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institutions have been given fresh impetus to incor-porate universal values in curricula and research.

The way universities are structuring undergrad-uate and graduate courses is also improving. Underthe Bologna Declaration, European universities and

business schools now have the flexibility to offershorter, more specialised masters graduate courses.

The declaration also known as the BolognaAccords provides a motivation for curriculuminnovation. By harmonising the length of under-graduate and graduate degrees across Europe,students should be granted greater mobility toswitch between universities.

How to stand outAs a result, higher education institutions are begin-ning to use corporate responsibility and relatedsubjects as a way of differentiating themselves andthereby attracting students.

However, it is important not to over-egg theimportance of the Bologna Accords. No mention ismade of specific subject areas, whether ethically-related or otherwise.

Instead the accords should be seen as a windowof opportunity, according to Peter Lacy, executivedirector at the European Academy of Business inSociety (EABIS). Because higher education in

Europe has been thrown up in the air, there is achance to rearrange how it falls, he says.

Rethinking management education in the lightof todays changing business world clearly presentsfaculty with an intellectual challenge. Moving theperception of business management as a value-less

economic science to an inter-disciplinary socialscience represents an important first step.

Practical hurdles also exist if corporate responsi-bility is to get onto more European masters courses.Finding the resources to develop programmes andthe faculty members to teach them is no smallundertaking.

Even for those business schools with experiencein the area, continual modifications are still requiredto stay on top of what is a dynamic subject area.

Parisian business school HEC, for example, hasbeen offering an MSc in sustainable developmentfor several years now. It also integrates aspects ofcorporate responsibility and ethics into its award-winning MBA programme. During 2007/08,students on HECs MBA will face a core 20-hourmodule on sustainable business strategy.

The market, both from the corporate side andthe participants side, is pushing us to develop moreawareness and research in these areas, explainsValerie Gauthier, associate dean of HECs MBAprogramme. Now it is how fast and how efficientlyyou are doing it [integrating sustainability] that willmake the difference.

Experience still counts

A final word of caution should also be directed at

the balance between pre-experience and experi-enced graduates those who have yet to enter theworkplace and those who have. To date, mostsustainability-related masters courses in Europehave attracted career professionals.

The Bologna Accords are now opening the doorto recent graduates to continue their studies inspecific niche areas before entering the workplace.Supporters of this approach argue that highly qual-ified pre-experience graduates are capable oflearning how to flexibly apply their knowledge oncethey are in the workplace.

The detractors express less confidence. KaiPeters, chief executive of Ashridge Business School

in the UK, speaks for many when he expresses hisconcern that CSR graduates could be too youngfor the job.

For students coming out of university with onlycorporate social responsibility on their foreheads,[companies] wouldnt know how to employ them,he argues.

Europes turbulent masters scene has yet tosettle. When it finally does, the competition will

begin. Around 12,000 courses are expected to floodthe field of graduate management educationalone. Corporations and students are waitingwith their clipboards to judge the new courses

for their content quality, relevance and, above all,imagination.I

Snapshot:BolognaDeclaration

Initially drawn up in 1999,

the Bologna Declaration and

subsequent communiqus

now count 45 European

countries among their signa-

tories. The initiative is

designed to improve the

alignment of higher educa-

tion systems across Europe,

thereby increasing student

mobility and rationalising

the granting of degrees.

The main change relates to

the length and structure ofmasters courses. Instead of

the traditional, continental

European masters-only

system (five years), Bologna

introduces the bachelors

masters progression (four

plus one, or three plus two

years). All European students

will henceforth graduate

firstly with a bachelors

degree.

Graduates can subse-

quently choose to continue

their studies in the same

subject at the same univer-

sity, change subject or

university nationally or

internationally, or go directly

into employment.

All signatories have agreed

that these changes will be

implemented by 2010. It is

estimated that between 1.5

and two million Europeans

will graduate annually with

bachelors degrees once

Bologna has been fullyimplemented.

Ethical Corporation Education special report Europe

Flexible learning for todays business school graduates


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Education offshore

Europes new

export industryEducating the next generation of leaders inAsias booming economies is a priority forEuropes business schools, says Nick Jones

For years they have taught current and futureexecutives to handle the disruptive effects ofglobalisation on their industries. Now businessschools themselves must adapt to long-term globaltrends that promise to separate winners from losers.Top of the agenda is how to attract prospectivestudents from the vast talent pools of India andChina before rival schools get there first.

The market in providing higher education toforeign students is growing fast and will continueto grow.

In a 2004 report the British Council said thatdemand for UK higher education places could triple

by 2020, growing by 6% each year. A study bystudent recruiting firm IDP has forecast demand forseven million students places in 2025, four times asmany as in 2000.

Underlying the trend is the demand for high-level skills created by economic growth in Asiancountries with large populations.

In China, the need for mid-level and senior

managers to guide the expansion of domestic andmultinational firms is outstripping supply, leading

business leaders to name talent shortage as the keyconstraint on growth.

Talent constraints are biting particularly hard inIndia, where IT industry body Nasscom has warnedof a shortfall of IT workers by 2010. The resultingspike in corporate sector wages has put top-endsalaries onto a level more familiar in New Yorkand London, making investment in a EuropeanMBA a feasible proposition and causing a surge inapplications.

New melting pots

According to Stephan Chambers, head of the MBAprogramme at Said Business School in Oxford, 80%of those taking the course are from outside the UK.Students divide about equally between Europe, Asiaand the Americas, and India is the fastest growingsource.

People want to come here because were one ofthe best schools in the business, he says. Ourstudent populations mimic those regions of theworld that have good universities and boomingeconomies.

The schools 225 one-year MBA students comefrom 48 different countries around the world. Of

the 2006 intake, 38% took a job in a new country ongraduating many choosing to stay in Europe

while average salaries were 52% above pre-MBAlevels.

According to OECD statistics, China is the largestsource of demand for postgraduate education

abroad with 8% of the total, followed by SouthKorea with 5% and India with 4%.

The UK is the second largest supplier of suchcourses after the US. France, Germany and theNetherlands are strengthening their positions,having been temporarily eclipsed by English-speaking countries with modern MBA courses andfewer restrictions on their higher educationproviders.

But European institutions are using a variety ofmeans to catch up. An increasing number of coursesare taught in English, while some schools areleading the way in the use of offshore campuses toreach the hottest segments of demand.

Among the most established is INSEADs Singa-pore campus, set up seven years ago. Hong Kong,Malaysia, and Dubai and Qatar in the Gulf have alsosought impressive European teaching brands as away to raise the skill level of their economies and

become regional hubs for higher education.Nigel Roome, who holds a chair in CSR at Solvay

Business School, explains that his Brussels-basedinstitute is highly international both in its intakeand in its alumnis post-graduation destinationsafter they graduate. This creates a student body that

brings a wide range of values into the classroom.This is very nourishing in terms of teaching

CSR, he says. Appreciation of business in a socialcontext is different in America from in Europe, just

Chinese businessleaders nametalent shortage asthe key constrainton growth

INSEADs ground breaking Singapore campus has proved a real success

Europe Ethical Corporation Education special report


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Being a sustainable company is about

more than just bottom line profits.

David Jackson, Company Secretary, BP plc

MSc Corporate Governance andCorporate Responsibility

Birmingham Business School

Increasingly, companies are judged on their behaviour within thesocieties in which they operate. In addition, investor expectationsare more demanding than ever before, and the cost to companiesthat ignore the benefits of good corporate governance is high.

The MSc Corporate Governance and Corporate

Responsibility offers an international perspective

on these two key areas which are of fundamental

importance to businesses and society globally.

This programme is designed to provide a sound

understanding of corporate governance and

corporate responsibility from corporate, investor

and stakeholder perspectives.

This programme considers the key issues in

detail and is relevant for a wide variety of careers

in business and the investment sector, or for

those considering a career in research.

As a student on the programme you will

benefit from:

Teaching by leading international experts

in the field. They bring their expertise and

knowledge to a programme which we believe

is leading edge in its coverage and content

The expertise and knowledge of the Centre

for Corporate Governance Research, which

runs the programme. The centre has strong

international links, for example, working with

organisations such as the United Nations

Conference on Trade and Development

(UNCTAD) and the International Corporate

Governance Network (ICGN)

The use of case studies, events and

guest speakers, allowing you to

relate theory to practical situations

Links with companies on a local,

national and international level

Learn more

Tel: +44 (0)121 415 8273

Fax: +44 (0)121 414 2263

Email: [email protected]

www.business.bham.ac.uk


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Notre Dame Institute for Ethical Business Worldwide

Notre Dame Center for Ethics and Religious Values in Business

255 Mendoza Colege of Business University of Notre Dame Notre Dame, IN 46556 USA1- 574-631-6072 www.ethicabusiness.nd.edu

Featured Conferences and Workshops Busines Education at Catholic Uniersities: Exploing the Role of

Mision-Dien Busines Scools. 7th International Conference

on Catholic Social ought and Management Education, to beheld at Notre Dame, June 11-13, 2008. Information availale atethicabusiness.nd.edu.

Muslim, Chistian, and Jewish Views on the Creation of Wealth.Interfaith conference on April 23-24, 2007 at Notre Dame.Program and papers availale at business.nd.edu/wealthcreation.

Peace rough Comece: Partnership as the New Paraigm.Conference held in November, 2006. Book forthcoming fromthe conference,Responsile Corporate Citizenship and the Idealsof the U.N. Global Compact, edited by Oliver F. Wiliams,

Director of the Center for Ethics and Religious Values inBusiness at Notre Dame.

Annual Events and Activities Berges Lecture Series in Business Ethics (six)

Cahil Lecture on Ethical Business (one)

Hesburgh Award for Sustained Contribution andLeadership in Business Ethics

Ethics Week

Monthly Newsleer: Value Lines

Pzer Faculty Seminar in Ethics

Comprehensive Ethics Curiculum & Courses Required MBA course in Foundations of Ethics since 1967.

Ethics courses are also required in the Executive MBAcuriculum since inception and undergraduate programs.

Ethics Electives (one required): Accounting Ethics, Ethics inFinance and Banking, Globalization and Ethics, InternationalBusiness Ethics, Leadership and Ethics, Marketing Ethics,and Spirituality and Business.

Business Ethics Field Project course at both the MBAand undergraduate levels and extensive involvement inCommunity Service.

Recognitions /Accomplishments Ranked 5th in World in Preparing MBAs for Social and

Environmental Stewardship by As pen Institute (AI) andWorld Resources Institute (WRI), 2005

Ranked byBusinesWeek and the Wa Street Journal forExcelence in Ethics

Highest 5 Star Rating for Faculty Research by AI and WRI

from the Mendoza Colege of Business Mission Statement

Business Ethics


13/36

Ethical Corporation Education special report Europe/India

as it differs within the nation states of Europe and inthe emerging forms of capitalism found in India andChina.

With Asian firms making progressively greater

inroads on western markets, Roome says that thepresence of their next-generation leaders in classeshe teaches such as an MBA option on governanceand corporate social responsibility makes for inter-esting debate.

He says: As we move from Chinese companies being suppliers of components to being globalbrands, we will see a shift of orientation from costand function to brand characteristics, which willpotentially include issues of responsibility.

At Said Business School, meanwhile, StephanChambers prefers to downplay the role of specialistethics courses.

Doing good business is about being smart, and being smart is about making sure that you dontcreate costs that you have to account for later,whether those are political, social or environ-mental, he says.

While Said MBA students can choose options in

CSR and social entre-preneurship, the launchof a mandatory newcourse on how climate

change will affectcompanies, sectors andcountries is more centralto the curriculum.

Im not convincedthat teaching C SRshould be a big separateinitiative, Chamberssays. We are aboutteaching people to thinkrigorously about organi-sations. Were not aboutteaching our students to

break rules and accruecosts, but to do theopposite.

As growth motors ahead in Asias largesteconomies, it will be the students themselves whodecide which approach to global challenges is best. I

Indian schools

Ethics and successarent mixing

In contrast to the trend in the USand Europe, corporate responsibilityis still off the agenda for aspiringexecutives at Indias business schools.Rajesh Chhabara reports

Survival in Indias corporate jungle is not based onbeing nice a lesson the countrys job-huntingbusiness school graduates often learn at interview.

Our campus recruitment history shows that candi-

date s wh o sound eth ica l, upright a nd

principle-oriented during interviews mostly get

rejected. Companies consider them unfit for the corpo-

rate world, confides a professor at a top businessschool in India. That neatly sums up the state of corpo-

rate responsibility in the country.

Corporate responsibility has yet to find a place in

Indias booming management education sector, which

has over 1,250 approved schools teaching 125,000 full

time students and a further 100,000 on distance

learning courses.

Six elite schools, the Indian Institutes of Manage-

ment (IIMs), are hot favourites of global corporate

recruiters.

Modelled on US business schools, IIMs continue to

focus on increasing shareholder value. They use

management books written by American authors and

learn from western case studies and theories. The

system has successfully produced world-class

managers, many of them at the helm of global organ-

isations.

About 80% of IIM graduates join multinational

companies. In recent years, consulting firms andfinancial institutions both less known for CSR initia-

tives have been the top recruiters offering dizzying

salaries.

Curricula of top business schools including the six

IIMs do not include corporate responsibility as a

subject. IIM-Ahmedabad offers management ethics as

an elective and often finds no takers.

Vidyanand Jha, a professor at IIM-Calcutta, says:

Companies are not looking for CSR skills while hiring

fresh MBAs.

This message applies to students in other parts of

Asia. A recruiter at a global bank in Singapore who was

searching for a CSR head explains: This is essentially

an NGO job within the corporate setting to look afterour community work.

Salaries countRicardo Lim, assistant dean at the Asian Institute of

Management, Manila, in the Philippines, says: I dont

think recruiters come talking about triple bottom line.

They are still looking for conventional skills in manage-

ment, finance and operations.

Students and parents are driven by the brand

name and ranking of the school rather than the

curriculum offered. A schools brand is valued by the

salary its graduates receive.

International salaries offered to graduates of the

newly formed Indian School of Business averaged

around $135,000, while the highest offer stood at a cool

$269,000 by an Indian IT company. At IIM-Calcutta, the

highest offer of $250,000 was made by a leading

investment banker to two students for posts in New

York.

With rewards like this available to students without

any grounding in corporate responsibility, it is little

wonder schools are reluctant to teach the subject.

Biju Varkkey, a professor at IIM-Ahmedabad, esti-

mates that it will be another three to four years before

Indian business schools start taking an interest in

corporate responsibility.I

Eventual salary is the top priority

Oxfords Said Business School has 80% overseas students


14/36

What employerslook for

Employers have high

expectations of corporateresponsibility graduates.

Basic business skills are

taken for granted.

Leadership ability is much

sought after.

Personality traits

integrity, strength of

character, charisma all

rank highly.

Cultural awareness and

creativity to deal with the

triple bottom line arehighly relevant for global

companies in challenging

environments.


16 Successful

graduates

18 Campaigning counts

One type of web page gets more hits than almostany of the thousands of sites devoted to corpo-rate responsibility: job notice-boards. The search fornew motivation and challenges is bringing anincreasing number of job hunters to this competitive

sub sector.Acre Recruitment, an agency that focuses on

sustainability-related jobs, watches emerging trendsin the job market very closely.

In general there are more candidates wanting toget into CSR than jobs available, says Acresdirector, Tom Leathes. However there are emergingsectors where the reverse is true, such as ethicalsupply chains and climate change.

In-house corporate responsibility teams,specialist consultancies and dedicated NGO posi-tions managing corporate partnerships have fuelledAcres growth since it was founded in 2003. The jobmarket continues to expand, while also becoming

more complex.Where CSR used to be quite a general sector, it

is now becoming much more specialised into itsconstituent parts, says Leathes. The candidatesthat do best are those with a focus in a certain area.

For business schools and universities, the chal-lenge is to respond with courses that equip studentswith most sought-after skills, providing differenti-ated offerings that build on each institutionsstrengths.

In the UK, Said Business School in Oxford hasintroduced social enterprise courses to its MBAprogramme, using dedicated researchers at the

Skoll Centre for Social Entrepreneurship. HenleyManagement College has started an executive

education course titled Leading Sustainably.Full-time, specialist programmes have increased

their intake at institutions such as Nottingham andWarwick. At Birkbeck College, which specialises inevening courses for London professionals,

sustained demand has led to a growing number ofoptions covering CSR, the environment and corpo-rate governance.

The MA in responsibility and business practice atBath has just increased its intake to 33 a year, aftermany years of a 24-student limit, according tocourse tutor Peter Reason.

Popular and relevant

Jeremy Moon, director of Nottingham BusinessSchools International Centre on Corporate SocialResponsibility, says the school is committed toproviding courses that are relevant to the real worldof management.

Nottingham offers two dedicated corporateresponsibility postgraduate programmes: an MA inCSR and an MBA. Six academics and 12 PhDstudents do teaching and research. A key part of theprogrammes is an internship system that givesstudents actual work experience.

Moon believes the breadth of skills that corporateresponsibility students acquire is an asset in the jobmarket. He says: Some who have gone into main-stream functions that do not relate directly to CSRhave nonetheless been told that their CSR degreemade them attractive. As an example he highlightsa recent masters graduate now working in the

marketing department of a multinational foodcompany.

Career opportunities

Giving recruiters what they want

Demand for social and environmental expertise is growing and evolving. A diverse array ofpostgraduate courses is helping people find the roles they seek and providing companies withthe talent they need, explains Nick Jones

Ethical Corporation Education special reportThe student view


15/36

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Certificate Programs for corporate citizenship

and community involvement professionals

But people who are thinking of taking a specialistcourse should first take a hard look at what they willget out of it, says Leathes.

Marketing qualifications such as CIM [Char-

tered Institute of Marketing] have become standardin that industry, but as yet none of the CSR-relatedcourses have yet reached that level of acceptance,he says. If a candidate has achieved fantastic results

in a previous CSR role, this is likely to hold moreweight than a qualification alone, he adds. But thetwo together provide an extremely attractive back-ground for companies.

The right skillsKey factors set the best candidates apart: asuccessful track record in industry, strong commer-cial skills, mastery of any technical knowledge forthe job in hand, and being a good communicator.

But, as the directors of CSR courses are keen topoint out, many individuals have found that post-graduate study tips the balance in their favour.

The good news for corporate responsibility grad-uates is that as business becomes more sophisticatedin managing its social and environmental impacts,companies will need candidates with greater tech-nical expertise.

Climate change managers, for example, are nowin high demand, commanding salaries around$180,000. No doubt these sums will soon be higher.Now thats something worth studying for. I

Well-structured course content is vital

Ethical Corporation Education special report The student view

Many individualshave found thatpostgraduate

study tips thebalance in their

favour


16/36

When Gerald Maradan enrolledon an MBA programme atHEC Paris business school inSeptember 2004 he knew he wantedto start his own business. But theidea of sustainable developmenthad never occurred to him.

Three years later, Maradan, 33,and fellow HEC graduate ThierryFornas, 38, are busy runningEcoAct. This Paris-based start-upoversees social and environmentalprogrammes for companiesincluding GE, Coca-Cola and EDF.

EcoAct began as an MBA projectsubmitted for a school competition.Teams of students had six months tomake detailed business plans fornew ventures.

Maradan and Fornas had a

simple idea: to broker partnerships between companies and non-governmental organisations,enabling them to meet goals set outin corporate sustainability policies.

Their idea may have failed towin the competition, but HECprofessors backed the pair. Theschool gave them a room on itsParis campus to use as an office fora year after they graduated. Fellowinternational classmates wereenlisted to work for the companyaround the world, setting up

projects.

Spreading the messageToday, EcoAct runs projects thatinclude carbon offsetting inArgentina, clean technology devel-opment in Burkina Faso andreforestation work in France.

In early 2007, the companyopened an office in Brazil, headed

by another HEC graduate, Eduardode Freitas. Maradan and Fornas arecurrently looking at opening a

branch in India, to be run by afurther classmate.

Maradan is convinced he wouldnot now be running his owncompany were it not for attendingHEC. The business skills learnt andcontacts made on the course wereinvaluable. He says: Withoutdoing an MBA I dont know how Icouldve found good people tocreate the company with me.

Confidence and successBut he says an MBA is about morethan just networking or learning

business basics like finance andmarketing. For Maradan, the coursegave him the confidence to becomea successful business leader.

Both EcoAct founders canremember moments on the HECcourse that were key to persuading

them to go into business.For Maradan, it was attending

sessions on the schools Visions ofLeadership programme.

Each week a chief executive isinvited to HEC to tell MBA studentsthe secrets of their success. Each isasked to focus on the un-teachableaspects of leadership such as values,relationships and judgement.

Maradan remembers meetingDidier Pineau-Valencienne, theformer chief executive of electronicsfirm Schneider, who said that big

managers are not exceptionalpeople and that anyone withenough courage and will powercould start their own firm.

Fornass moment of insightcame on the schools elite leader-ship programme The ExecutiveCommittee on Campus a studentversion of the original TEC, a USprogramme started 50 years ago.The programme involves monthlymeetings for chief executives todiscuss leadership.

Twelve select participants on theHEC programme attend six group

meetings and six one-on-onemeetings. Each is held at the RitzParis. TEC on Campus chairmanGary Brinderson, chief executive ofhis self-named construction firm,oversees the discussion.

Maradan remembers: ForThierry, that course was reallyimportant. It was there he discov-ered entrepreneurship could be anoption for him.

Personal development

Although Maradan had always

known he wanted to start a business, it was a hi-tech companyhe wanted to found, not an ethicalfirm like EcoAct.

A weeklong seminar on sustain-able development in mid-2005changed his mind, he says. Repre-sentatives from companies andconsultancies made a series ofpresentations to students on how

being ethical could be turned intocommercial opportunities.

Looking back, Maradan says: Itfelt that we were really at the begin-

ning of something new. I had afeeling the hi-tech business, the

business I knew very well, was not booming anymore. The seminar,he says, showed that sustainabledevelopment could be that new

business.Ultimately, says Maradan, the

real value of an MBA is the chanceit offers managers to escape thedaily office grind and reconsidertheir career options.

For the founders of EcoAct, their

MBA break was one that wasextremely well timed. I

Graduate profile

Putting values into practice

For the co-founders of EcoAct, studying for an MBA inspired themto start their own business and made them realise the benefitsof ethical management values. John Russell reports

An HEC MBA energised Maradan and Fornas

It felt that wewere really atthe beginning

of somethingnew



17/36


18/36

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I An advert in our fortnightly e-newsletter, read by 50,000+ per month

Campus activism

Protesting improves

your prospectsCampus students are agitating for businessto clean up its act. No surprise there,then except these days its managementstudents who are leading the calls.Lisa Roner explains why

Net Impact, the San-Francisco-headquartered business student organisation, is on a missionto change the world. Its bright-spark members are

busy building a network of new leaders committedto using the power of business to address social andenvironmental challenges.

The group is certainly being credited withhaving an impact on individual campuses, theircommunities and broader society.

Many business school deans, when asked abouttrends at their institutions, highlight studentinterest as one of the key drivers of curriculumchanges and course developments, says LauraHartman, a professor of business ethics and legalstudies at DePaul University, North Carolina.

Stanfords Graduate School of Business, forinstance, has redesigned its curriculum to empha-sise issues linked to the environment and corporateresponsibility, in large part based on student input,

much of it from Net Impact membersHartman says many deans also mention student

clubs and Net Impact specifically as a sponsor ordriver of activities and special events related toethics, corporate responsibility and sustainability.

Widespread impactSeventy-two per cent of the Financial Times top 50global business schools have active Net Impactchapters, Hartman says. With more than 120chapters around the world and partnerships with avariety of profit and non-profit organisations, thegroups are involved in a wide range of activities.

Most recently, Net Impact chapters across the

US have taken a strong interest in a grassrootsclimate change campaign called Step It Up thatis calling for the US Congress to take action for

an 80% cut in carbon emissions by 2050.Net Impact members are passionate about social

and environmental issues and say they should beimportant considerations for business schools,students career goals and the private sector ingeneral.

In a survey by Net Impact of more than 2,000current MBA students at 87 different businessschools, 90% say business leaders should factorsocial and environmental effects into their businessdecisions and 60% believe doing so can be prof-itable. Eighty-one per cent of those surveyed thinkcompanies should work toward the betterment ofsociety, but only 18% believe most companiesalready are.

As Michael Stepanek, the MBA programmedirector at the Kenan-Flagler Business School,University of North Carolina, observes: When youtake intelligent, ambitious, team-oriented studentsand combine these abilities with a heightened sense

of social consciousness, you are left with a future business leader capable of influencing significantand real change. I

Useful links:www.netimpact.org

http://stepitup2007.org

It pays to choose the right cause



19/36


20/36


22 Mainstream CSR

Whether it is product marketing or core finance,MBA students at Daniels College of Business,at the University of Denver in the US, are taught tolook at things differently from the norm. When theyreturn to the world of work, profit maximisation is

expected to be just one on a list of their new priorities.A quarter of the two-year MBA course is directed

towards values-based issues, says marketingprofessor and former dean Bruce Hutton. DanielsCollege first redesigned its curriculum in the early1990s, when there was a move from 25 standardsubjects to seven integrated courses, with titles suchas Values in Action and The Essence of Enterprise.

We wanted to put economic prosperity in thecontext of social equity and environmentalintegrity, Hutton explains.

The decision paid off. Over the last 15 yearscompanies and students have come to see the impor-tance of balancing social and environmental goals

with economic objectives. In turn, Daniels Collegehas become known for its specialism in areas such as

business ethics, innovation and globalisation

Creative careersMore and more small business schools are lookingto follow the same path. Recent years have seen anexplosion in MBA providers promising to equiptheir students in sustainability, social innovationand similar emerging themes.

As a marketing tool, the focus on non-traditionalsubjects makes sense. Not only does it help themdifferentiate themselves from large business schools,

but it also taps into the growing interest among MBAstudents for creative, values-based careers.

Some small schools are going even further,however, offering MBAs that are focused entirely onsustainability-related issues. Malboro College is oneof the latest to jump on the bandwagon. TheVermont-based graduate centre is promoting a new,

accredited MBA in Managing for Sustainability.An increasing number of graduates are looking

to change their careers into the sustainability area,says George Kao, admissions director at the PresidioSchool of Management, a pioneer in the sustain-ability-only MBA.

Presidio currently has more than 200 students,four-fifths of whom work in the for-profit sector. Tofurther differentiate itself, the San Francisco-basedschool has a well-developed summer programmedesigned to offer its students in-house experienceon sustainability issues.

Flexibility and motivation

Specialist MBA courses tend to attract professionalsthat are working or wanting to work in sustain-ability-related jobs. Sach Baumer is a case in point.An environmental consulting engineer by training,he enrolled on the Presidio MBA with a view tomaking a difference on issues such as pollutioncontrol and waste reuse.

Smaller business schools often have more organ-isational flexibility and greater market motivation toadopt sustainability than their larger counterparts.In this respect, many are rightly earning a reputa-tion for excellence and innovation in the teaching ofsocial and environment management.

Students, however, should be conscious of theirown marketability. There is a world of difference

Ethical specialists

Small schools stand out

As the market for MBAs gets ever more crowded, sustainability and other progressive businessideas are helping smaller business schools emerge from the crowd. Oliver Balch investigates

Companies andstudents havecome to see theimportance ofbalancing socialand environmentalgoals witheconomicobjectives

Ethical Corporation Education special reportSpecialisation


21/36


22/36

Specialisation Ethical Corporation Education special report

Ethics centres

Keeping ethics

mainstream, notcut adrift

With increasing resources being investedin corporate responsibility, business schoolsneed to be careful that the subject is a centralteaching focus, and not ghettoised, saysOliver Balch

As with all good stories, the tale behind the devel-opment of the Centre for Sustainable GlobalEnterprise at Cornell Universitys Johnson School ofManagement has a short and a long version.

The short version centres on Samuel Johnson,former chief executive of the family-owned SC

Johnson. Upset that the business school bearing hisname had come out poorly in a ranking on sustain-ability, he decided to endow a centre and a chairedprofessorship to ramp things up, as facultymember Mark Millstein puts it.

The longer story, on the other hand, dates backseveral decades. It relates to the growing awarenessin business academia of the limitations inherent topure agency theory. As externalities such as climatechange and business ethics increasingly colour thedecision-making landscape, so must business

schools determine how to equip tomorrowsbusiness leaders.

The answer for many has been to set up aspecialist centre. Starting with the Ashridge Centrefor Business and Society in the UK and finishingwith the Yale Centre for Business and Environmentin the US, the Aspen Institute has a list of 351 suchinstitutes around the world.

Isolation risksAs well as being a good source of potential funding,such centres generate high-level research, raiseawareness among faculty and introduce externalexperts with fresh perspectives onto campus.

But specialist centres have their problems too.The chief danger, critics maintain, is their potentialto ghettoise social and environmental issuesrather than integrating them into mainstreammanagement education.

Business ethics provides the classic example. Arecognised discipline in its own right for at leastthree decades, business ethicists now boast animpressive range of research centres and academic

journals. Yet the subject continues to operate on themargins of most MBA courses.

The risk [for specialist centres] is placing corporatesocial responsibility and sustainability issues into a silo

and making them distinct from the other businessfunctions, argues Dean Krehmeyer, executive director

of the Business Roundtable Institute for CorporateEthics at the University of Virginia.

The leaders of such centres are not blind to theserisks. Much comes down to the physical nature ofthe centres. Many are housed in designated build-ings with nominated employees and a tailoredresearch programme. Others are more like virtualnetworks, grouping together faculty from acrosscampus that have an interest in social, environ-

mental and ethical issues.Cornells Centre for Sustainable Global Enter-

prise is a mixture of the two. With a skeleton staff ofthree full-time researchers, it draws on other expertsfrom the business school and the wider university.

The centres internal network, for example,includes faculty members from Cornells schools forart and architecture, hotel management, industriallabour relations, agriculture and life sciences, engi-neering and human ecology.

We motivate them to ask good research ques-tions in their own areas that relate to the innovationagenda for sustainability, Mark Millstein says.

Building these cross-disciplinary research links

into the teaching programme is a second key step.While some business schools have adopted puresustainability-related MBAs, most have resisted thetemptation to teach social and environmentalmanagement in isolation.

The way I approach this is not as an issue ofcorporate social responsibility, but about smart

business, says Doug Hoffman, professor in sustain-able enterprise at the Erb Institute.

The Erb Institute feeds into the mainstream MBAcourse at Michigan Universitys Ross School ofBusiness. Students graduate from the three-yearcourse with the opportunity of obtaining both an

MBA and an MSc.Hoffman argues that the institutes focus on

Business ethicscontinues to

operate on themargins of mostMBA courses

Specialists focus on issues like environmental change


23/36

Ethical Corporation Education special report Specialisation

environmental issues helps prepare students forfuture business challenges that traditional MBAsubjects do not cover. It is not a different valuestatement, he says. It is a different lens to add onto

your other lenses so as to keep your eye on the ballof what is important to business.

Integrating social and environmental issues intocore MBA disciplines such as strategy, finance,accounting and marketing is not easy. But it is essen-tial for the subjects lasting credibility.

And specialist centres are helping to make thathappen, not least in the area of social entrepreneur-ship. The University of Californias Davis Centre forEntrepreneurship and Stanford Universitys Centrefor Social Innovation, for example, have done muchto advance business thinking around the marketopportunities of sustainability.

Two-way learningNot that the traffic is all one way. Specialist centresfocusing on disciplines such as accountancy,finance, social psychology and marketing havedone much to advance academic understanding ofsocial and environmental impacts on business.

Corporate responsibility issues are getting moretraction because they are being linked in withfaculty research on issues such as behaviouraleconomics and occupational psychology, saysMary Gentile, an independent consultant to severalleading business schools.

Specialist centres on social and environmental

business issues still have at least two importanthurdles to climb, however. The first relates to disci-plinary boundaries. As faculty and student interestin these non-traditional aspects of business strategyand behaviour continue to develop, greater claritywill be needed.

At present, sustainability and corporateresponsibility are often used as convenient catch-alls for a range of different disciplinary areas.

Subjects such as the environment, ethics, greensupply chains and social enterprise may seemlike they all fall under the CSR umbrella, but theyare all interesting topics worthy of a separateconversation, argues Rich Leimsider, senior

programme associate at the Aspen Institute.Proving the link with the future human resource

needs of businesses represents a second importantstep. Business schools have long been accused ofchurning out robots, graduates that lack initiativeand creative thinking.

Focusing on the socialand environmental agendanot only prepares studentsfor future business chal-lenges, but also trains themto use their imaginationand to use their businessskills flexibly.

So, for those afraid ofspecialist centres leading todisciplinary ghettoisation,there is hope. It is to befound in the structure ofcorporate and academiclife. Few CSR jobs, assuch, exist in corporationsand fewer still in businessschools. Career interest,if nothing else, shouldkeep specialists frommaking themselves too

comfortable in their ivorytowers.I

Cross-campus expertise at Cornell

Integrated cross-disciplinary courses are smart business

A focus on

environmentalissues helpsprepare students

for future businesschallenges


24/36

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25/36


27 Boardroom basics

29 Broad church

30 Better leaders31 Harvard reviewed

University executive education programmes arerapidly changing to meet the needs of todayscompanies and executives. As business seeks agreater return on its investment and executives lookfor more streamlined learning experiences, business

schools are responding with innovative newapproaches integrating ethics into their executiveeducation courses.

Craig Smith, a senior fellow in marketing andethics at London Business School, says that the pres-sures on companies, especially large multinationals,to be socially and environmentally responsible arehere to stay. Although he believes corporate respon-sibility used to be in the public affairs ghetto, hesays that is changing, with businesses giving it moreattention all of the time.

And as businesses place more emphasis on thesoft skills of leadership, executive educationproviders are looking for effective and efficient

ways of integrating business in society issues intoboth open enrolment and tailored programmes.

Beyond the classroomBob Stilliard, the chair of Unicon, the InternationalUniversity Consortium for Executive Education,and the director of executive education at AshridgeBusiness School in the UK, says one key trend is theincreasing demand for customisation of andinvolvement in learning experiences.

Corporate clients expect a much broader range oflearning methodologies, stretching beyond theclassroom, and a high degree of relevance, Stilliard

says. Chris Musselwhite, chief executive andfounder of the leadership development consultancy

Discovery Learning, agrees. He says many universi-ties are adding business simulations to theirexecutive education programmes in response.

At the University of San Franciscos School ofBusiness and Management, classroom simulations

are designed to give working managers theproblem-solving skills and experience necessary toeffectively manoeuvre in todays complex businessworld. By using interdisciplinary teaching teamapproaches, the schools faculty can role model thekinds of discussions and interactions that occur incorporate boardrooms, allowing students to thinklike senior managers.

In fact, simulation approaches to ethics educa-tion that allow students to learn by doing are now

being broadly applied throughout traditional MBAand executive education courses.

One cutting edge approach being developed bythe Aspen Institute and the Yale School of Manage-

ment involves students in what if scenarios togive them first hand experience to address valuedilemmas. According to Mary Gentile, Aspensresearcher director for the giving voice to valuescurriculum development initiative, the approachuses scripts and action plans to give students expe-rience at voicing their values effectively and actingon them.

The programme, which has been piloted in avariety of MBA and executive education settings,allows students to test and become comfortablewith their own values voice before encounteringethical challenges in the workplace. Gentile says the

approach is not about whether to act on yourvalues, but about how to do so.

Integrating ethics

Learning through doing evenat the topRole-play, simulation and action learning are the latest buzzwords in executive education,as schools give students a taste of tough decision-making. Lisa Roner investigates What is

executiveeducation?

A short-course, corporate

responsibility executive

education programme

typically costs $4,000.

An executive MBA

programme costs over

$30,000.

Participants are typically

senior managers, aged

between 35 and 40.

Short-courses last

anywhere from a couple

of days to a few weeks.

Executive masters

programmes last a year.

Executive MBAs two years.

Most programmes are

bespoke, or tailored to

the needs of participants.

A small number of

general management

programmes are

available.

Ethical Corporation Education special report Executive education


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Executive education Ethical Corporation Education special report

Mitchell Neubert, Chavanne chair of Christianethics in business at Baylor Universitys HankamerSchool of Business in Texas says exposing studentsto ethical models and questions and deliberating

ethical dilemmas through role-playing is highlyeffective in teaching students to understand andappreciate ethics.

By concentrating on developing strong leader-ship skills among current and future managers,ethical business practices are more likely to becomepart of company-wide culture, says David Blake,chairman of the Ethical Business Leadership TaskForce for the business honorary group Beta GammaSigma and a professor of business at the Universityof California, Irvine.

Games that offer executive education studentsreal-time lessons in ethics are another simulationtool being employed by business schools.Computer-based games plunge students head firstinto thorny business situations and provide asophisticated model of play.

The Laboratory of Sustainable Business at MITsSloan School of Management is using a simulationgame Fish Banks Ltd to teach students about theeffects of global warming, pollution and other envi-ronmental factors on business.

According to James Chisolm, co-founder of simu-lation design company ExperiencePoint, the realvalue of the games is that they provide a sharedexperience and common language to discuss issueslike ethics.

Global leadershipLeadership, particularly in a global context, anddiversity, according to Stilliard, are key areas ofinterest for many executive education students.

HEC School of Management in France islaunching a unique leadership programme in theglobal context through an executive education part-nership with cotton producers in Senegal. Students,especially executive MBA students concentrating onsustainable business, will work at the local level indifferent villages to understand how to adapt oper-ational models for future business development tolocal contexts and cultures.

According to the Fletcher School of Law andDiplomacy, many companies are looking to boosttheir executives knowledge of international politics,culture and business. To meet the demand, manyschools, including Northwestern UniversitysKellogg School of Management, based in Illinois,have launched executive MBA programmes in loca-tions like Hong Kong, Frankfurt and Tel Aviv. In2006, in fact, 62% of Executive MBA Councilmember programmes required an international trip.

Craig Smith says every subject, from economicsto operations, needs to deal to some degree withsocial and environmental impacts. Corporate

responsibility, he says, is the missing piece of thepuzzle in a lot of courses.

London Business School has had a required business ethics and corporate responsibility coursefor its full-time MBA students for ten years, but

added it to the executive MBA in 2003, Smith says.The challenge, however, in integrating ethics and

social responsibility more completely into businesseducation is the lack of case studies for basic courseslike finance, organisational behaviour and strategy,Smith says. But a European Academy of Business inSociety project, for which Smith is the academicleader, is working with European business schoolsto develop as many as a dozen case studies that willfit core business classes.

Companies want schools to cover corporateresponsibility more thoroughly, Smith says, andtheir support is shown by sponsorship of EABISfrom the likes of IBM, Johnson & Johnson, Unilever,

Microsoft and Shell. They need MBA students whoappreciate how corporate responsibility and ethicsfigure into all parts of the business, he says.

Effectively integrating ethics into executiveeducation is not about preaching right and wrong,Smith says, but is a matter of helping students under-stand how ethical issues arise in business and givingthem the tools necessary to see the big picture.

Karen Morley, associate dean of executive educa-tion at Melbourne Business Schools Mt Eliza Centrefor executive education says companies wantprogrammes that build learning into action. And so,innovative business schools around the world are

taking strong steps in the right direction when itcomes to integrating ethics into executive education.I

Useful links:

www.uniconexed.org

www.betagammasigma.org

www.eabis.orgwww.emba.org

Exposing studentsto ethical models

and questions,and deliberatingethical dilemmasthrough role-playing is highlyeffective

Computer-based simulation exercises give students realistic experience


27/36


Top-level programmes

CEOs in the

classroomEven chief executives are taking time out to goback to college, as interest in executive educa-tion booms across the board. Lisa Roner reports

Despite a downturn during the widespreadeconomic slump that followed the September2001 terrorist attacks on the US, and the eliminationof more than one million jobs worldwide thisdecade by large corporations, demand for executiveeducation is on the upswing.

In a survey by the International UniversityConsortium for Executive Education of 43 univer-sity-based executive education programmes, 84% ofrespondents report revenue gains in 2006, with 43%logging increases of at least 10%. Of those surveyed,78% report growth in customised courses in 2006,while 70% say their open enrolment programmesgrew.

Iese in Spain reports that although customisedprogrammes are becoming increasingly popular,there is still strong growth in its open enrolmentprogrammes, especially overseas. The school nowteaches its renowned advanced managementprogramme in Germany, Brazil and Poland andother open enrolment programmes in Africa, China

and South America.Executive MBA programmes are seeing an

increase in applications even though fewer compa-nies are footing the bill for their employees.According to the Executive MBA Council, 32% ofstudents paid their own way in 2006, convinced thatan MBA will advance their careers.

Teaching soft skillsNon-degree executive education programmes arestill popular, however. Companies face increasinglycomplex and competitive global business marketsthat require highly trained and effective leaders,says Stephen Burnett, associate dean for executive

education at the Kellogg School of Management atNorthwestern University, Illinois.

Most business schools report increased interestamong companies in soft skills, including ethics andintegrity prowess. Michael Hoffman, executivedirector of the Center for Business Ethics at BentleyCollege in Massachusetts, says the growth in

business ethics education over the past ten years hasbeen driven by tougher regulations and scrutiny inthe press.

After the collapse of Enron, Hoffman says, highereducation realised it had not done enough to inte-grate ethics, sustainability and corporate

responsibility into the business curriculum. Andcompanies around the world are feeling the

pressure to improve management skills and leader-ship development to avoid being the next frontpage ethics scandal.

And many companies are starting at the top by

enrolling their directors in executive educationprogrammes to brush up on their skills.

Director educationIn the wake of corporate scandals and Sarbanes-Oxley, stakeholders are demanding moreaccountability from corporate boards. Businessschools are reforming existing programmes andlaunching new ones to meet the needs of theirnewest executive education students.

Institutional Shareholder Services is a providerof proxy voting and corporate governance guidancefor more than 35,000 companies. It says that among5,400 US companies, the number sending boardmembers to educational programmes had increasedfrom just 7% in 2004 to 24% by October 2006.

Maureen McNichols,director of the StanfordDirectors Forum, says about55 corporate directors attendits ISS-accredited courseannually to learn about chiefexecutive selection andsuccession, litigation risks,financial reporting and exec-utive compensation.McNichols says thanks to

increasing demand thecourse is being offered twiceannually, and began withwith the 2007-08 academicyear.

Wharton Business Schoolat the University of Pennsyl-vania says it is launching anew course for first-time corporate directors thatwill cover everything from how to read a balancesheet to ethical obligations. The school is alsooffering similar programmes to directors in Chinaand India.

Continuous learning has become a vital part of

many companys retention strategies, says BethStoops, head of corporate learning at Thunderbird.

Graeme Gherashe, director of executiveprogrammes at the Australian Graduate School ofManagement, agrees and says employers want toup-skill, develop and retain their most talented andmotivated people. Leadership and sustainabilityrank among the top concerns of AGSMs businessclients, Gherashe says.

The demand has driven the development of newprogrammes like Stanfords Business Strategies forEnvironmental Sustainability, aimed at sustain-ability practitioners. According to the school, the

course will explore what it means to turn sustain-able business practices into competitive advantage.

Most businessschools reportincreased interest

among companiesin soft skills,including ethicsand integrityprowess

Pay attention, captains of industry


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Executive education Ethical Corporation Education special report

complexity and level of scrutiny of their businessoperations and include the industrial and manufac-turing sector (27%), finance and banking (14%) andmining/oil/chemicals/pharmaceuticals (12%).

The global focus of such sectors is drivingdemand for schools with an internationally diversefaculty and a global outlook. Peter Degnan, execu-tive director of Whartons executive educationprogrammes, says there is significant growth in theneed for leadership training, particularly in devel-oping countries, and a better understanding ofwestern business practices.

Della Bradshaw, business education editor at theFinancial Times, says executive education providers,including the London School of Business, have seengrowing demand for programmes that includesocio-politics and cultural awareness. The schoolsglobal mix of students has also been a magnet forinternational participants, says Nirmalya Kumar,faculty director for its executive educationprogrammes.

And the interest in executive educationprogrammes focused on ethics and corporateresponsibility will continue to grow, predicts CraigSmith, a marketing and ethics professor at LondonBusiness School. I

Duke Corporate Educations marketing directorGordon Armstrong says large multinational corpo-rations are also turning to business schools foreducation and training to run operations in devel-

oping countries. The oil and mining sector inparticular, he says, needs to manage complex social,economic and cultural factors with increaseddexterity and local sensitivity to protect operationsand investments.

Sustainable business practices, says WilliamBarnett, faculty director of the course at Stanford,must be based on rational activity that includes notonly a profit motive, but also concerns for the envi-ronmental impact of what we do.

Thinking and actingThe educational model offered by business schools,Armstrong says, brings out the discussion andhelps companies build in-house capability andexpertise to find their own solutions to complexethical and social challenges. The sustainable

business practices course is an approach to trainingfuture leaders to think and act rationally.

It is a challenge that is catching the attention of avariety of businesses. The top buyers of customisedexecutive education programmes reflect the

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Future leaders

Develop an

internationalistmentalityTomorrows business leaders will have to workin diverse cultures and handle complex globalproblems. Business schools can prepare themand teach the soft skills they will need, saysLisa Roner

A s business goes global, there is a growing needto build the international capabilities of keyemployees and to sharpen their understanding ofdifferent parts of the world. Business schools, there-fore, face a greater need to expose their students tonew markets, countries and cultures.

Boundaries between countries are not as specificor relevant as they once were, says Gary Carini,associate dean for graduate business programmes atthe Hankamer School of Business, Baylor Univer-sity, Texas. If those conversations are not broughtinto the classroom, he says, a real disservice is doneto students.

Companies increasingly want more than simplemanagement refresher courses, as they seek to boostexecutives knowledge of the international politics,culture and business context in which they must

operate, says Stephen Bosworth, dean of theFletcher School of Law and Diplomacy, part of TuftsUniversity, Massachusetts.

Nurturing soft skillsTony Buono, coordinator of the Bentley Alliance forEthics and Social Responsibility says it is difficult totalk about business without now putting it in aninternational context. The same is increasingly true of

business ethics and corporate responsibility, he says.Many companies are seeking to upgrade execu-

tives soft skills to equip them to approach businesssmartly.

The globalisation of business means companies

must address the needs and requirements of anincreasingly diverse group of clients, shareholdersand employees. And thats where so-called softskills like leadership, being a team player, empathyand communication become critical.

Business schools are responding with new andupdated programmes that include an increasedfocus on ethics. Some are even launching entireprogrammes dedicated to the soft skills required byglobalisation.

Excellent leadership, coupled with moral goodsense and core values, is central to incorporatingethical behaviour throughout the corporation,

which should be our goal, says David Blake,chairman of the Ethical Business Leadership Task

Force for the business honorary society BetaGamma Sigma and a professor at the University ofCalifornia, Irvine.

Blake says schools must establish the tone,

provide the tools and teach a business culturewhere ethical behaviour is insisted upon and prac-ticed at every level within an organisation. Onlythen, he says, will ethics be ingrained into thecorporate fabric of the total marketplace.

Improving ethical IQExposing students to ethical models and questions,deliberating over ethical dilemmas and interactingwith faculty and practitioners who model ethicalleadership can raise a students ethical IQ, saysMitchell Neubert, the Chavanne chair of Christianethics in business at Baylor.

At the University of Michigans Ross School ofBusiness, students are exposed during their initialorientation to leadership rotations that includeexaminations of globalisation, diversity, integrityand social responsibility. Susan Ashford, theMichael and Susan Jandernoa professor of organisa-tional behaviour and human resource managementat Michigan, says that it is important symbolically toset boundaries of issues that will be co

executive education for responsible business

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