SPECIAL CASE: Australia, Denmark & USA OECD Conference- Higher Education at a Time of Crisis (Copenhagen, Denmark) 29 June 2009

Transcription

1 SPECIAL CASE: Australia, Denmark & USA OECD Conference- Higher Education at a Time of Crisis (Copenhagen, Denmark) 29 June 2009 Robert Strand Ph.D. Fellow- Copenhagen Business School Center for Corporate Social Responsibility Net Impact Fellow Europe 1

2 Smith, A. (1776) The Wealth of Nations. London: Penguin Group 2

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4 "It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self-interest. -- Adam Smith (1776) 4

5 Smith: Overall, the result is positive. The necessities of life are better provided for everyone through self-interest rather than benevolence. The modern-day corporation is also driven by its own self-interest to make profits and, as in Smith s time, society benefits from these goods and services. 5

6 + Dow Jones Today s US MBA education 6

7 However, there is a fundamental difference between the butcher, baker, and brewer of Smith s time and the modern-day corporation. Smith s butcher, baker, and brewer lived within the communities that they served and directly interacted with their stakeholders on a daily basis. 7

8 So, while the butcher, baker, and brewer produced goods out of their own self-interest, they also had a strong incentive to take into account the interests of their stakeholders because their personal reputation would suffer if they mistreated their suppliers, cheated their customers or polluted their community s environment. 8

9 200 years later: Stakeholders of the corporation- including suppliers, customers, employees and shareholders- are increasingly located in different corners of the world. Moreover, corporations are building corporate campuses that further insulates the corporation and its employees from their communities. 9

10 SO WHAT? 10

11 Self-interest model MBA education in US largely inward focused: Business subjects often silo d Business schools often not engaged with other schools within their universities Curiosity for outside world is not widely celebrated Business students offered little preparation for stakeholder understanding & engagement At best this amounts to ignorance at worst ignorance & arrogance Result: BUSINESS STUDENTS ARE LARGELY DISCONNECTED WITH THE WORLD OUTSIDE OF BUSINESS.. (and the world outside of business is largely disconnected from business & business students) 11

12 Do you trust Ordinary man in the street: 52% Business Leader: 26% 12 Available at:

13 Financial Crisis How to Fix Business Schools debate 13

14 Students want to distance themselves from earlier generations of MBAs, whose wonky moral compasses were seen to have contributed to the turmoil, especially on Wall Street, the biggest employer of Harvard MBAs in recent years. 14

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17 THE MBA OATH As a manager, my purpose is to serve the greater good by bringing people and resources together to create value that no single individual can create alone. Therefore I will seek a course that enhances the value my enterprise can create for society over the long term. I recognize my decisions can have far-reaching consequences that affect the well-being of individuals inside and outside my enterprise, today and in the future. As I reconcile the interests of different constituencies, I will face choices that are not easy for me and others. Therefore I promise: I will act with utmost integrity and pursue my work in an ethical manner. I will safeguard the interests of my shareholders, co-workers, customers and the society in which we operate. I will manage my enterprise in good faith, guarding against decisions and behavior that advance my own narrow ambitions but harm the enterprise and the societies it serves. I will understand and uphold, both in letter and in spirit, the laws and contracts governing my own conduct and that of my enterprise. I will take responsibility for my actions, and I will represent the performance and risks of my enterprise accurately and honestly. I will develop both myself and other managers under my supervision so that the profession continues to grow and contribute to the well-being of society. I will strive to create sustainable economic, social, and environmental prosperity worldwide. I will be accountable to my peers and they will be accountable to me for living by this oath. This oath I make freely, and upon my honor. 17

18 MBA schools must be deeper, broader, and more dynamic Explore & challenge theories of business World is a messy place where neat models & templates do not always apply; dig deep in these areas MBA must be more cross-thematic It's Time for the 3-D MBA -- Roger Martin (HBR How to Fix Business Schools ) 18

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20 US MBA schools should explore outside of the US Scandinavia offers strong examples for US Copenhagen Business School embraces cross-thematic approach to teaching business 20

21 Some Concluding Comments Self-interest as foundation of (US) MBA education called into question Harvard Business Review debating How to Fix Business Schools MBA oath called for by (US) MBA students Many cite this is simplistic but at the least this is indication of student interest Others call for deeper, broader, and more dynamic MBA education US MBA schools should look abroad; Scandinavia offers strong examples of stakeholder engagement.. Copenhagen Business 21School embraces cross-thematic approach to teaching business

22 Some Concluding Comments Society grants professions (business and education, and perhaps business education ) the autonomy to self-regulate only so long as these institutions continue to operate in the best interests of society. How long will it be before we lose this privilege? -- Rakesh Khurana & Scott Snook (HBR How to Fix Business Schools ) 22

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24 Note: Adam Smith and Wealth of Nations discussion within this presentation was adapted from The Stakeholder Dashboard by Robert Strand within Consulting for Business Sustainability (2009), Greenleaf Publishing 24