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A degree of responsibility

Words | Laura Latham

As corporate social responsibility becomes key to business strategy, MBA courses are adapting to stay ahead of the trend

ONE OF THE MOST important aspects of MBA degrees is their ability not just to teach the fundamentals of business but to draw on important new developments. Chief among these at present is corporate social responsibility (CSR), or the ability of companies to take into account the effects of business practices on local communities and the environment.

Several MBA courses are at the forefront of changing business trends and many now include important lessons about CSR. In a recent survey by the University of California, Santa Barbara, MBA students at 11 top business schools ranked CSR high on their list of values. Many claimed they’d be happy to accept a lower salary to work for an employer adopting ethical business practices. This echoes society’s steady shift towards greater public awareness of corporate responsibility.

Professor David Grayson, chairman of the Doughty Centre for Corporate Responsibility at Cranfield School of Management, believes responsibility, sustainability and issues surrounding the globalisation of trade are becoming increasingly important in the corporate world.

“Our goal is to make sure students have the opportunity to be exposed to debate about the role of business in society and a globally connected economy,” he says.

Grayson sees this new breed of MBA as a way of creating future managers able to implement sustainable and responsible business practices.

At Nottingham Business School, Professor Jeremy Moon says there is a growing demand for more socially responsible courses within the MBA structure.

“There’s evidence that more business schools are integrating social and environmental stewardship into their MBAs, as well as developing specialist CSR modules and programmes,” he explains. “There appears to be a growing interest in the business world as to what skills and competences a CSR manager requires and this may create a greater future interest in the subject.”

Moon says the main aspects MBAs should address are: “the responsibilities of business; the scope and limits of these responsibilities, particularly in respect to governments, societies and individuals, and the different global, national, cultural and company contexts of these responsibilities”.

He adds that the growth of interest in CSR among the wider public is what makes it so important to MBA students. “Increasingly, investors, employees and customers bring social and ethical criteria into their decisions about investment, work and consumption. Companies value our graduates for their CSR positions, but they also value CSR education in graduates entering other business positions. This suggests CSR training will have an impact on the future of global business.”

David Rodger, communications manager for the Aberdeen Renewable Energy Group and a graduate of Aberdeen’s Robert Gordon University, agrees that CSR skills now being taught on MBA courses are paramount to tomorrow’s business models.

“There’s been a real shift in our culture and issues of CSR now have a broader application in business than previously,” he says. “Companies need to think about the way they’re doing things and how they can change.”

While at university, Rodgers studied the renewable energy industry and he finds satisfaction in using his education in the sector. “MBAs with a CSR relevance definitely encourage students to consider how they can achieve business targets while still having empathy for society and the environment,” he says.

CSR issues are now regarded as so important that Manchester Business School has devoted a department to them. Professor Rosa Chun says: “Corporations are under a lot of pressure to be responsible and universities are also under pressure to include ethics into the curriculum.

“MBA students are future business leaders and, therefore, our mission is to put the curriculum into our courses.”

The school aims to provide a framework to help students understand how aspects of running a business and making a profit can exist alongside ethical issues. However, Chun explains that, because the subject is still relatively new, there’s little evidence yet to indicate whether CSR training is making any discernible difference to business practice.

“It’s doubtful whether new graduates can completely change the way companies or governments do business. But if we supply them with the knowledge and a framework then maybe change can happen by degrees,” she says.

“There’s no doubt multinationals are welcoming students with a CSR background and demand is growing among students, as it’s seen as something that could help you find a better job after graduation.”

CASE STUDY
Steven Lang, 34, from Bromley, Kent, graduated recently with an MBA from Manchester Business School and was formerly a marketing professional with Disney in France. He majored in corporate social responsibility (CSR) but was president of the business school’s CSR club. “Students now have a better awareness of CSR issues,” he says. “They are conscious about corporate ‘greenwash’ and want to be able to tell when a company is genuinely involved in CSR and those just paying lip service to it.”

Lang believes corporate responsibility used to be merely part of a company’s marketing or PR strategy but the issues are now becoming so critical to consumers that they are beginning to form the core of many corporations’ business practices.

“It’s definitely important to MBA students,” he says. “Our CSR club got more students to its talks and events than those for investment banking.”

Lang now seeks a position in a mainstream company that allows him to practise his knowledge of CSR. “Responsibility crosses all sectors – retail, banking or renewable energy,” he says. “Companies realise there has to be someone in their organisation who is taking responsibility for how those concerns are met.”