Edi­tor’s NOTE

Industry Leaders - - Front Page - by Anna Do­man­ska

The most pres­ti­gious B schools in the world ob­ses­sively pur­sue money. This ide­o­log­i­cal un­der­pin­ning has led to the arse­nal of junkbond-in­duced takeovers of the 1980s; the cor­po­rate ac­count­ing scan­dals of the 2000s; the out­ra­geous in­crease in the pay gap be­tween chief ex­ec­u­tives and work­ers; and even the real es­tate crash and the 2008 fi­nan­cial cri­sis. Just about every premise of this teach­ing model that dom­i­nates B schools’ cur­ricu­lum needs to be punc­tured; and the sooner the bet­ter, be­fore much dam­age is done. Be­yond hypocrisy, this model mis­leads the pub­lic and its own busi­ness grad­u­ates about lead­er­ship. They say - all that mat­ters is share­holder value, and the man­age­ment’s sole duty is to max­i­mize share­holder value. This idea has swept cor­po­rate Amer­ica. We may choose to look the other way, but that is not the so­lu­tion.

Some say, the schools have be­come de­tached from real-world is­sues. While we agree, elite B schools are the most in­tel­lec­tu­ally stim­u­lat­ing places in academia. Yet, the loss ex­tends far be­yond the class­rooms. Busi­ness grad­u­ates fo­cus far too much on max­i­miz­ing share­holder value and have a lim­ited un­der­stand­ing of eth­i­cal and so­cial con­sid­er­a­tions es­sen­tial to the core of busi­ness lead­er­ship. B Schools need to gain a re­bal­ance so busi­ness grad­u­ates de­vote over­whelm­ingly on not just the fi­nan­cial as­pects of the busi­ness, but also on ‘pru­dence’. This re­quires an ed­u­ca­tion in moral rea­son­ing. Do we have time for that?

Like al­ways, we wel­come your com­ments (Face­book.com/ In­dus­trylead­ers, @Indlead­ers on Twit­ter).

You may reach us at edi­tor@indlead­ers.com or Edi­tor – In­dus­try Lead­ers Mag­a­zine, The Fastest Me­dia, 3651 Lin­dell Road, Suite 320D, Las Ve­gas, NV 89103.

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