The Inspired Economist

On June 3, 2009, the day before their official graduation, 400 Harvard MBA’s took an unofficial oath to “serve the greater good”, “act with the utmost integrity” and guard against “decisions and behavior that advance my own narrow ambitions, but harm the enterprise and the societies it serves.”

It may seem idealistic or even naïve for students to be taking this unsanctioned oath yet, 8 years after Enron kicked off a two-year run on accounting and financial fraud (WorldCom, Adelphia, Tyco, Global Crossing), we seem surprised that financial fraud has brought the global economy to it’s knees.  Our infrastructure is begging for systemic changes and the principles of capitalism are being challenged, yet perhaps it’s simply our moral compass that needs re-setting?

When President Obama took office, he asked us to be virtuous.  He asked business to make decisions on not just whether it was profitable, but to ask the question “is it right?”

Fareed Zakaria suggested in Newsweek’s The Capitalist Manifesto: Greed is Good (to a point) this week, that no system can work without a “sense of ethics and and values at its core.”  No matter what reforms get put in place, no matter what systemic shifts we make, unless common sense, judgment and an ethical standard are in place, future innovations in business will result in the same excess and collapse.

And at TED Talks in February, Barry Schwartz,  a psychologist from Swarthmore who studies economics and psychology, spoke about the loss of practical wisdom in business.   Incentives have driven out moral will.  Rules have created an over-reliance on whether or not they exist. Instead of nurturing decision-making capabilities and moral character, a “solution” based on pay-offs has been implemented.

So maybe the students from Harvard, Oxford and Stanford aren’t so idealistic after all.  Across the spectrum, leaders and pundits are calling on a return to old-fashioned notions of virtue, nobility and the ability to distinguish between right and wrong.  As the next generation of business leaders emerges into the worst job market in decades, perhaps this re-focus will not only serve to raise our expectations (and hopes) for future business leaders, but will be a call to action for the current management profession as a whole.

image credit: JordanH at Creative Commons

A new report produced by AASHE - the Association for the Advancement of Sustainability in Higher Education - shows an explosion of activity around sustainability on campuses across the US and Canada. AASHE Digest 2006 offers a comprehensive review of campus sustainability efforts from the past year. The report includes over 600 stories about higher education institutions leading the way to a sustainable future. It is organized into 8 chapters covering: 1) institutional change, 2) education and outreach, 3) social responsibility, 4) green building, 5) energy management and renewable energy, 6) food and agriculture, 7) transportation, and waste, water, landscaping, and procurement. "The incredible variety of sustainability activities underway on campuses is a sign of a healthy movement," said Tom Kimmerer, AASHE’s Executive Director. "If the first two months of 2007 are any indication, we are heading for another vigorous year."

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A program with roots at Dominican is being added to the University’s graduate business offerings. Starting this fall, Dominican will offer an MBA in Sustainable Enterprise. Dominican has acquired the trademarked Green MBA program currently offered at New College of California. The Green MBA was among the first of its kind and remains one of only a handful of MBA programs specifically focused on corporate social responsibility, environmental sustainability, and social justice within the business context.

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The Sustainable Endowments Institute released its College Sustainability Report Card, which grades 100 leading colleges by looking at campus greening practices and endowment policies.

The Cambridge-based research institute announced that the report’s grade of "A-", the highest cumulative sustainability grade, was received by Harvard University, Stanford University, Dartmouth College, and Williams College. In addition, 26 schools received an average grade of "A-" or better upon assessing only campus operations.

The College Sustainability Report Card takes into account 26 indicators, from green building initiatives to endowment investment policies, and uses an A to F letter grading system to evaluate performance. The study indicates that some leading schools are taking proactive steps on both campus and endowment sustainability initiatives. Other schools are shown to have a less consistent commitment.

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As prestigious B-schools everywhere update their MBA curriculum to respond to today’s educational focus on socially and environmentally responsible business practices, one Bay Area college has been quietly gaining momentum for its innovative MBA program. Since 2003, San Francisco-based Presidio School of Management has offered an MBA in Sustainable Management that integrates environmental, ethical and socially responsible concerns into every course. Recently, the San Francisco Business Times listed Presidio School of Management as the 12th largest MBA program by enrollment numbers in the greater Bay Area. Last year, Presidio was named 15th on the MBA list.

The reason is clear, according to Dr. Ron Nahser, Presidio School of Management provost since 2004. “People are more aware than ever about the importance of creating and managing socially, environmentally and financially sustainable businesses and organizations. Through the project-oriented curriculum and practical experience offered through the Presidio MBA program, our students are helping companies solve real-time challenges while they’re learning how to think like sustainable managers – and be the next generation of business leaders.”

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Beyond Grey Pinstripes, a biennial survey and ranking of business schools, spotlights innovative full-time MBA programs and faculty that lead the way in integrating issues of social and environmental stewardship into business school curricula and research. These programs and pioneering faculty are preparing students for the reality of tomorrow’s markets, equipping them with an understanding of the social, environmental, and economic perspectives required for business success in a competitive global economy.

The survey results allow prospective and current students, faculty and administrators to compare best practice. For corporate recruiters and human resource executives, the results help identify the MBA graduates best equipped to lead business in the 21st century.

Via: (Beyond Grey Pinstripes)

Bainbridge Graduate Institute’s MBA in Sustainable Business program was ranked #1 in Net Impact’s Student Guide to Graduate Business Programs.

Net Impact is an international organization of more than 10,000 business leaders, experts, entrepreneurs and students committed to using business to make a positive impact on our world. Students at each of 89 business schools, including 22 of the top 25 business schools as ranked by the Wall Street Journal, were surveyed on 20 questions.

In addition to its overall number one ranking, Bainbridge Graduate Institute (BGI) took first place in 12 of the 20 categories.  Duke, Boston College and Case Western scored best on two of the twenty categories.  Harvard, Stanford, Darden, Cornell and seven others had top scores on one factor.  The remaining 80 schools had no first place finishes.

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The Association for the Advancement of Sustainability in Higher Education (AASHE), is a membership-based association of colleges and universities working to advance sustainability in higher education in the US and Canada.  They work in partnership with businesses, NGO’s and government agencies that support their mission.

On this website you’ll find many resources to assist your campus sustainability efforts, including a sustainability policy bank, a campus sustainability professionals page, interest groups, publications, classroom resources, and useful links for virtually every aspect of campus operations.  Many of these resources are members-only. To see how your school or business can join AASHE and be part of this growing network, visit their membership page.

Net Impact, a nonprofit organization with graduate business students and professional members dedicated to creating a better world through business has just released Business as UNusual: The 2006 Net Impact Student Guide to Graduate Business Programs. The guide, available for download at www.netimpact.org/bizschoolguide, is the first of its kind to focus specifically on student perspectives on social and environmental themes in MBA and other graduate programs’ curriculum, career services, and student activities. The Guide contains detailed profiles of 39 programs, as well as student ratings of their schools along 20 different categories.

Business as UNusual: The 2006 Net Impact Student Guide to Graduate Business Programs was created in response to numerous inquiries from students applying to business school on what is available for those with social and environmental interests. The Guide provides a student perspective on how well programs are preparing socially and environmentally responsible business leaders, compares data on different MBA programs, and helps to educate graduate school applicants on which program is right for them.

The information in The Guide was compiled from two sources: a qualitative survey completed by 39 Net Impact student chapter leaders, and an online survey completed by 1,191 student Net Impact members. Schools were rated on a variety of factors including curriculum, student activities, career services, and administrative support. The introduction, written by Net Impact, highlights school stand-outs and overall trends. The Guide was published for free online on August 28, 2006.

The Erb Institute MBA/MS Program at the University of Michigan is a graduate level masters program focused on Global Sustainable Enterprise.  Students in the three-year program earn two degrees — a Master of Business Administration (MBA) from the Stephen M. Ross School of Business (Ross) and a Master of Science (MS) from the School of Natural Resources & Environment (SNRE). The MBA/MS Program is the largest and most integrated of its kind worldwide.

Objectives

• To educate and provide relevant working experiences for the future leaders focused on balancing environmental, social, and economic interests.
• To attract highly talented students to pursue sustainability-related careers.
• To work with organizations in developing challenging and rewarding career paths for graduates.
• To promote and sponsor interdisciplinary courses and team projects which provide students with invaluable experience relative to their future sustainability-related careers.
• To provide financial support for University of Michigan research at the intersection of business and the environment.