Sunday, March 29, 2015

A634.1.6.RB_DiazBrian

When I consider the dilemma faced by today's MBAs the phrase that comes to mind is "It only takes a few bad apples to spoil the bunch".  Corporations such as Enron and WorldCom can be assigned a portion of the blame for perpetuating this stigma.  Blame can also been placed on educational institutions for not adequately preparing students for the challenges they will undoubtedly face once they are finished with school and are exposed to the "real world" of business. Podolny (2009) wrote "First, business schools have largely ignored the teaching of values and ethics because those aren’t subjects of inquiry for traditional business school academic disciplines. The consequences have been disastrous" (p. 64).  Future managers and business leaders are always going to be faced with the task of decision making.  So why is it that these individuals are not exposed to the ethical training that would prevent them from making the types of mistakes that occurred at Enron?  For example, when Navy SEALs are trained, are they not taught to utilize more than one type of weapon?  Is it not important to train their minds as well as their bodies for any conceivable type of mission or circumstance?  To be a SEAL member you have to endure underwater demolition training, parachute training, communications training, and  sniper training, just to name a few ("Navy SEAL," 2015).  There is no reason that future Fortune 500 leaders should not be prepared in the same strategic manner in order to be prepared for any and all circumstances.

Business schools should proactively examine their programs to include not only quantitative methodologies, but qualitative methods as well. "Academics capable of teaching soft skills such as leadership, values, and ethics are in a distinct minority at most business schools. Without more faculty members in those areas, schools can’t weave such disciplines effectively into the fabric of MBA education"  (Podolny, 2009, p. 66).  There are three actions business schools can take to improve ethics training in education:
  • Place an emphasis on doing rather than telling.  Have students perform role-playing scenarios to provide them to the type of ethical scenarios they may encounter.
  • Create joint classes with students from B-schools.  This experience can create a greater appreciation of the challenges other countries are faced with.
  • Establish programs with global organizations to expose students to the real life scenarios they can expect, how they might face those challenges, and what outcomes can be expected based on their decisions.  Work or study abroad program can also be beneficial. (Himsel, 2014).
Business schools have created a distrust that they must work towards repairing.  Podolny (2009) wrote "In order to reduce people’s distrust, business schools need to show that they value what society values. They need to teach that principles, ethics, and attention to detail are essential components of leadership" (p. 66).  Potential MBA students should research the schools they are interested in and evaluate which institution's values most resembles their own.  It is important to know what companies are likely to hire you if you attend a specific institution.  At ERAU, we work closely with several employers such as Boeing, Lockheed Martin, and NASA.  By researching the culture associated with these organizations it is possible for potential students to recognize which employer might be a good fit for them.  Sites such as GlassDoor, Indeed, and LinkedIn are just a few sites that can provide help provide organizational information to job seekers.  Business schools interested in shaping future leaders have to be cognizant of the fact that ethics plays a significant role in the development of these individuals.  The men and women that their programs will graduate will enter the workforce and are a representation of their education and the skills acquired at these universities.  Podolny (2009) noted "in a world where MBAs have been directly or indirectly responsible for destroying so much value, business schools can’t point to isolated examples of leadership and scholarship as justifications for their existence. They must be able to say that they promote behavior that is consistent with society’s values. Business schools can never do that unless they reinvent themselves" (p.67).  As we are all aware the only certainty in life is change.  If business schools fail to adopt they can expect to see not only decreases in the value of their degrees, they can expect to be impacted financially as well.  Without alumnus who will pay for fancy new buildings?

Himsel, D. (2014). Business Schools Don't Teach Ethics Effectively. Retrieved from http://www.bloomberg.com/bw/articles/2014-08-06/business-schools-dont-teach-ethics-effectively


Podolny, J. M. (2009). The Buck Stops (and Starts) at Business School. Harvard Business Review, 87(6), 62-67.