Business Education for Responsible Capitalism: Developments and Challenges

1. Business Education for Responsible Capitalism: Developments and Challenges Jeremy Moon Director www.nottingham.ac.uk/business/iccsr

2. Role of the Business School in Responsible & Sustainable Business • Blame Enron/ Worldcom/ Financial Crisis / negative social & environmental impacts • NB Physics, Engineering & wider education? • Wider impacts of education and socialisation on business roles; particularly in-work socialisation? • Contribution of BS experience to business behaviour? How has BS experience changed in a decade? What drives BS education? Should BS reflect system or change it?

3. A Decade of Progress: Programmes • Growth in programmes, modules and enrolments ethics, responsibility, sustainability • Key variables: • ‘Leading’ schools appear most committed: branding, resources & flexibility • Associated with dedicated research centres; faculty-engagement; student mobilisation • Continental divide? USA market driven; EU academic driven

4. Maturation of R&SB research field: Converging ‘conversation’ & replicable studies (but also issue-led, conceptually fluid) Distinctive theoretical orientations PhDs; Journal status of CSR as per Entrepreneurship + Status in academic associations (AoM, EGOS) Dedicated journals; mainstream journals; conferences & networks; text books, handbooks A Decade of Progress: Research ?

5. A Closer Look at ‘the Committed’ • Analysis of UN PRME Signatory Sharing Information on Progress (SIP) Reports (see ICCSR Working Paper 2011) • SIP as mutual learning device; for STK communication; no template or verification • Six SIP principles as foundation for integrating R&SB education + 7th ‘operations principle’ • Analysis of first 100 reports is ostensibly of ‘the committed’ (nb now 400+)

6. What has been analysed?

7. Key Messages from the analysis • Vast majority aim to embed R&SB in all areas; most emphasis on teaching; especially MBAs • Although dedicated R&SB research capacity common, little elaboration of understanding of and approach to R&SB research • Committed to campus greening/ CO2 reduction and community involvement (reflecting university responsibilities / capabilities)

8. Strategies for Integrating Sustainability

9. Questions Remain • Progress beyond the committed? • Among the committed how widespread is intra School commitment (R&SB as fad or taste)? • Are the committed / leading schools main-streaming R&SB or co-existing with financial business model? • ... Given FT Index remains main yardstick of Business Schools • How effective is the education for R&SB?

10. Questions Remain • In light of these questions and surveying the prospects, ‘What sort of business education is appropriate for responsible capitalism’? • What we teach? • Governance of business education?

11. What we teach? • Main barriers to curriculum change are cognitive (given organizational enablers for change e.g. branding; strategy; staffing)? • Usually entails budget and time re curriculum revision; staff recruitment, development etc. • From learning about R&SB (knowledge) vs. learning for R&SB (capabilities)? • What is relationship between four strategies for integrating R&SB?

12. What we teach? 61 % 10 % 35 % 53 %

13. What we teach? • Innovation easier in new structures than mainstreaming? (Nottingham: mainstream on basis of niche innovation) • How to achieve lasting impact on graduates’ knowledge of & capabilities for R&SB? • Blended pedagogies: conceptual, evidence-based, tools, experiential, creative (Nottingham) • Alumni engagement for longer term impact? • Co-learning?

14. Responsible capitalism agendas & governance questions for companies & markets … and BS? As per companies who commit to R&SB, questions of depth of commitment; need for assurance arise Will new watchdogs emerge? Will existing watchdogs include / prioritise R&SB? Where are we now? R&SB educators use STK analysis: use on BS? Governance of business education?

15. Owners and Students? • Owners (oftenUniversities) often see BS as ‘cash cows’ & means of engagement • Students (potential, enrolled, alumni) • Expect: career development / ‘a ticket to ride’ / ‘finishing school’; salary enhancement - especially MBAs or is this an FT driven myth? • Is UK student expectation of ‘education for sustainability’ shared in BS (especially MBA)?

16. Employers & companies in general • Expect BS graduates & their skills & knowledge to be conducive for individual / collective business success i.e. sustainable profits • Expect information and knowledge for practice • Reward schools with internships; research partnerships; recruitment; £$ • Variable business perspectives on significance of R&SB (sector, national factors; innovators, imitators, laggards)?

17. Staff • Expect career development; educational / academic standards; excellence in teaching and research; recognition; engagement & impact • R&SB agendas have potential here: how are they conveyed / articulated and by who within BS?

18. Society • Expects BS education to reflect / serve broad societal values • BS could align responsibility to society & sustainability for society with education • Stewardship, citizenship or network models to underpin R&SB strategy and to recognise and take account of business power?

19. Governance of business education? • STK analysis locates prospects... • Reveals drivers of BS behaviour and weak mechanisms for responsibility to society? • Impact of leading R&SB schools on dominant gate-keepers (e.g. FT Index) or graduate employment criteria is modest? • Responsible capitalism raises doubts about self regulation in markets

20. Governance of business education? • Leading schools can manage this complexity through ‘co-existence’, more challenging for others (resources- & reputation-light) who otherwise reflect logic of STK system • Is there a wider challenge to be more like professions (used to be?)? Serving system; themselves; clients (challenge to STK model?) • What are mechanisms for more responsible self-regulation or co-regulation?

21. Governance of business education? • Can institutions offer opportunity for mutual governance? (accreditors, EABIS, UNPRME, Aspen BGP? • Costs to organisations and risk of membership exit? • Alternatives?

22. Is progress masking ‘co-existence of R&SB & financial business education? • How can we teach R&SB? • Are our stakeholder relations / governance systems structured against R&SB?

23. Godemann, J, Herzig, C, Moon, J and Powell, A (2011) ‘Integrating Sustainability into Business Schools: Analysis of 100 UN PRME Sharing Information on Progress (SIP) reports’ ICCSR Research Paper Series No. 58-2011 Lockett, A, Moon, J & Visser, W (2006) ‘Corporate Social Responsibility in Management Research: Focus, Nature, Salience and Sources of Influence’ Journal of Management Studies Matten, D & Moon, J (2004) ‘Corporate Social Responsibility Education in Europe’ Journal of Business Ethics References

24. References • Moon, J & M Orlitzky (2011) ‘Corporate social responsibility and sustainability education: A trans-Atlantic comparison’ Journal of Management Education • M Orlitzky and J Moon (2010) ‘Corporate Social Responsibility Education’ in D Swanson and D Fisher eds Assessing Business Ethics Education Information Age

25. Your next steps – making the most of your EAUC Membership… • Resources - • visit the dedicated Education for Sustainability section on the EAUC resource bank • visit SORTED - the online resource for sustainability in the Learning and Skills sector • Networks - Join SHED - the leading cross sector Community of Practice in the UK for Education for Sustainability (EfS). Developed in collaboration with Higher Education Academy. • Visit the EAUC stand for more information on this group • Recognition - want recognition for your curriculum projects – enter the 2012 Green Gown Awards courses and/or skills categories. Entries open summer 2012 • Measure and improve - sign up to LiFE for help on embedding ESD into your institution - visit www.thelifeindex.org.uk Membership matters at www.eauc.org.uk