beyond grey pins tr ipesP R E P A R I N G M B A s F O R S O C I A L A N D E N V I R O N M E N T A L S T E W A R D S H I P

beyond grey p ins tr ipesP R E P A R I N G M B A s F O R S O C I A L A N D E N V I R O N M E N T A L S T E W A R D S H I P

Jennifer Finlay

Rick Bunch

Kavita Prakash-Mani

W O R L D R E S O U R C E S I N S T I T U T E

Judith Samuelson

M a ry Gentile

M a u reen Scully

I N I T I A T I V E F O R S O C I A L I N N O V A T I O N T H R O U G H B U S I N E S S

A s p e n I n s t i t u t e

i i

world resources insti tute

The World Resources Institute provides information, ideas,

and solutions to global environmental problems. Our mis-

sion is to move human society to live in ways that pro t e c t

E a rt h ’s environment for current and future generations.

Our program meets global challenges by using knowledge to

catalyze public and private action:

To reverse damage to ecosystems. We protect the capacity

of ecosystems to sustain life and pro s p e r i t y.

To expand participation in environmental decisions. We col-

laborate with partners worldwide to increase people’s

access to information and influence over decisions about

natural re s o u rc e s.

To avert dangerous climate change. We promote public

and private action to ensure a safe climate and sound

world economy.

To increase prosperity while improving the enviro n m e n t .

We challenge the private sector to g row by impro v i n g

e n v i ronmental and community well-being.

initiative for social innovationthrough business

A PROGRAM OF THE ASPEN INSTITUTEThe Aspen Institute is an international nonpro f i t

educational institution dedicated to enhancing the

quality of leadership through informed dialogue. It

convenes men and women who re p resent diverse

viewpoints and backg rounds from business, labor,

g o v e rnment, the professions, the arts, and the

n o np rofit sector to relate timeless ideas and values

to the foremost challenges facing societies,

o rg a nizations, and i n d i v i d u a l s .

The Aspen Institute’s Initiative for Social

Innovation through Business works to enhance

d i alogue, teaching, and re s e a rch at the intersection

of business needs and social concerns, with special

focus on business and management education.

}i i i

A C K N O W L E D G M E N T S i v

F O R E W O R D 1

A N E W M O D E L F O R C O R P O R A T E C I T I Z E N S H I P 2

M A X I M I Z I N G C O M P A N Y I N V E S T M E N T I N M B A T A L E N T 4

T H E E N V I R O N M E N T A L S T E W A R D S H I P C H A L L E N G E 7

T H E S O C I A L S T E W A R D S H I P C H A L L E N G E 1 3

L E A D I N G M B A P R O G R A M S 1 9

w S c h o o l s a t t h e C u t t i n g E d g e 2 0

1 9 9 9 F A C U L T Y P I O N E E R A W A R D S 2 2

N E X T S T E P S 2 6

c o n t e n t s

AN M BA ST UD EN T P OS ES A QU EST IO NAT A SOCI AL RESP ONSIBI LITY S EMIN A R .

i v

a c k n o w l e d g m e n t s

BEYOND GREY PINSTRIPES: PREPARING MBAS FOR SOCIAL AND ENVIRONMENTAL STEWARDSHIP is a

c o l l a b orative eff o rt made possible by the contributions and support of many diff e re n t

individuals. We especially acknowledge the business school faculty, administrators, and

students, who helped this project come to life and who are working to move the discus-

sion of social and environmental concerns to the center stage in business education.

BEYOND GREY PINSTRIPES benefited significantly from the time and energy of our

corporate partners. The following individuals provided insight and guidance as

judges for the Faculty Pioneer Aw a rds, external reviewers of the re p o rt, and as par-

ticipants in our discussion of corporate re c ru i t i n g :

David Basile,H e w l e t t - P a c k a rd Company

Diana Ekstrand, GE Fund

G i l b e rt Hedstro m , A rthur D. Little

F a rha-Joyce Haboucha,Rockefeller & Co., Inc.

Lisa Leff , Salomon Smith Barn e y

Renee Lerc h e , F o rd Motor Company

Timothy McClimon, AT&T Foundation

B e rn a rd Milano,KPMG Peat Marwick Foundation

M a ry Beth Salern o ,American Express Foundation

Karl Schmidt, Johnson & Johnson

Stephen Stumpf, Booz Allen Hamilton

Deborah Zempke, F o rd Motor Company

This project would not have been possible without the generous support of our

funders. Our heartfelt thanks to the Alcoa Foundation, the Citigroup Foundation, The

F o rd Foundation, the Nathan Cummings Foundation, the National Enviro n m e n t a l

Education and Training Foundation, the National Fish and Wildlife Foundation, The

David and Lucile Packard Foundation, and the V. Kann Rasmussen Foundation.

We extend a special thanks to Peter Thorp, who as Vice President of the Citigro u p

Foundation off e red his vision, good humor, and strong commitment to social and envi-

ronmental stewardship in management education.

We also thank our wonderful team of “concept reviewers,” who explored options

for expanding the business school study to include activity at the intersection of

business and society. Maureen Scully, Mary Gentile, Jaan Elias, and Jim Thompson

posed important questions and shaped our thinking at a critical decision point in

the emerging partnership between the World Resources Institute and the Aspen

I n s t i t u t e ’s Initiative for Social Innovation through Business.

Our project team, internal reviewers, and communications team infused the

p roject with their fabulous energy and commitment. With tremendous gratitude we

thank: Matthew Arnold, Hyacinth Billings, Dana Caryl, Allison Cliff o rd, Liz Cook, Rob

D a y, Deborah Farm e r, Barbara Lau, Linda Lehre r, Tony Janetos, Maggie Powell, Janet

Ranganathan, Don Reed, Carol Rosen, Matt Sonne, Megan Shoup, Michael To t t e n ,

Elizabeth Wong, and Donna Wise.

S OC I E TY ’ S F U T U RE IS T IE D TO T HEQ U A L I T Y O F B U S I N E S S L E A D E R S H I P— L E A D E R S H I P A B L E T O R E C O G N I Z E

A N D M E A S U R E T H E L O N G - T E R MI M P A C T O F B U S I N E S S D E C I S I O N SO N P E O P L E , C O M M U N I T I E S , A N D

T H E N AT U R A L E N V I R O N M E N T .

f o r e w o r d

We are not just training people to run companies, but to handle some of society’s most

i m p o rtant and complex tasks. After all, the private sector will be the engine of economic

g rowth and job creation every w h e re; it will increasingly create and manage the social

safety nets; it will have the most powerful voice in setting global regulations and technical

s t a n d a rds; it will re a rrange political and social re l a t i o n s h i p s .

J e ff rey E. Gart e n , Dean, Yale School of Management 1

S o c i e t y ’s future is tied to the quality of business leadership—leadership able

to re cognize and measure the long-term impact of business decisions on the natural

e n v i ronment, on employees, and on the communities in which businesses operate.

A master’s in business administration (MBA) is the degree of choice for many

f u t u re business leaders and, as such, is a key point of strategic intervention in the

development of business leadership. Designed to help students obtain the skills and

insight to manage critical issues facing business, MBA programs focus on the analyt-

ical and technical skills needed for traditional business tasks. A select few,

celebrated in this re p o rt, are also training their students to handle complex social

issues and provide stewardship of fragile environmental re s o u rces.

The Business Environment Learning and Leadership (BELL) project of the Wo r l d

R e s o u rces Institute (WRI) has been working with business schools since 1990 to

i n t roduce environmental issues in management into curricula and re s e a rch. The

Initiative for Social Innovation through Business (ISIB), launched in 1998 as a pol-

icy program of the Aspen Institute, works with business educators and business

schools to test new concepts about the role of business in society. As part of ongoing

re s e a rch eff o rts, both WRI and ISIB conduct periodic surveys that examine how well

graduate business schools train their students to manage social and enviro n m e n t a l

issues. BEYOND GREY PINSTRIPES: PREPARING MBAS FOR SOCIAL AND ENVIRONMENTAL STEWARDSHIP, a

joint re p o rt of the two institutions, presents this year’s survey results and identifies

the pioneering institutions and faculty dedicated to educating future business lead-

ers. This re p o rt can be a tool for faculty, students, administrators, and alumni who

want to build their school’s programs, but the ultimate audience for this re p o rt is

corporations—the consumers of MBA talent and business re s e a rch. The training

o ff e red by the leaders in this field should have high value for the companies that

face increasingly complex problems in the global marketplace.

We hope you find the results useful and inform a t i v e .

Judith Samuelson, Executive Dire c t o r

Initiative for Social Innovation

t h rough Business, A Program of the

Aspen Institute

Jonathan Lash, P re s i d e n t

World Resources Institute

1

2

a new model for corporate c it izenship

In the past, being a good corporate citizen meant donating money to social

or environmental causes. To d a y, corporate citizenship has far- re a c h i n g

implications as companies move beyond compliance to seek business

o p p o rtunities in solving significant social and environmental problems.

This new business strategy

involves e n g a g i n g in collaborative

p roblem solving, d e v e l o p i n g p ro d u c t s

that meet societal standards for labor

and for environmental and human

s a f e t y, b u i l d i n g employee re l a t i o n-

ships, m a x i m i z i n g the potential of

human capital, p a rt n e r i n g in commu-

nities and with nonprofit org a n i z a t i o n s ,

c o m m u n i c a t i n g company values and

s t a n d a rds, and re p o rt i n g p ro g re s s

on corporate environmental and

s o c i etal commitments.

The most successful businesses

will be those developing products and

s e rvices that solve environmental and

social problems while creating business

value. A move toward sustainable

development will re q u i re managers

with multifaceted skills—and a fine-

tuned awareness of issues vital to

business and society—to successfully

negotiate this transition.

How are future business leaders

being trained to deal with the rapidly

changing parameters of social and

e n v i ronmental issues in the market-

place? What skills will they need to

meet the demands and challenges of

e n v i ronmental regulations, sustain-

able development, diverse culture s ,

and mobile workforces? Will they be

able to balance the often-conflicting

expectations of investors, employees,

and communities?

E X T R A O R D I N A R Y B U S I N E S S O P P O R T U N I T I E SC A N B E F O U N D I N P R O T E C T I N G T H E N A T U R A L

E N V I R O N M E N T A N D S T R E N G T H E N I N G T H ESOCI AL FA BRI C OF OUR MU LT I C U LTU RAL WOR LD .

{Recent growth in business educa-

tion in the United States has been

dramatic: at the end of the 1950s,

only 125 U.S. colleges and universi-

ties off e red master’s degrees in

business education. To d a y, 748 U.S.

graduate business schools confer

a p p roximately 100,000 MBA degre e s

e v e ry year.3

While no other graduate degre e

holds as much marketplace cachet,

few MBA students are being trained

to understand the interd e p e n d e n c e

of business operating in a global

society as a business imperative.

Beyond Grey Pinstripes: Pre p a r i n g

MBAs for Social and Enviro n m e n t a l

S t e w a rd s h i p identifies business

schools that are training students to

tackle complex societal and enviro n-

mental challenges. In addition to

identifying leading schools and fac-

u l t y, the survey profiles the activities

that bring MBA students in touch

with environmental and social issues,

suggests ways for corporations to sup-

p o rt exemplary MBA programs, and

p rovides guidelines for re c ruiters on

how to assess societal and enviro n-

mental management skills.

The leading schools identified in

this survey go beyond providing basic

business training and deserve support

and recognition for their trailblazing

e ff o rts. These business school inno-

vators are preparing students for

stewardship of our natural environment,

our labor resources, our communities,

and of the greater society in which

we live.

The report also spotlights 1999

Faculty Pioneer Award winners Stuart

Hart, James Johnson, Jr., Lester Lave,

and special lifetime achievement award

recipient John Ehrenfeld. Faculty

Pioneer Awards are presented to out-

standing faculty members in

recognition of their efforts to incorpo-

rate social and environmental topics

into the curricula and into the activities

of their business schools.

Complete details of the survey

results and additional information on

the business schools cited here can be

found at www.wri.org/wri/bschools, the

World Resources Institute web site.

3

Mark Moody-Stuart , G roup Managing Dire c t o r, Royal Dutch/Shell Group of Companies2

4

m a x i m i z i n g c o m p a n y i n v e s t m e n t i nmba talent

Tight labor markets—as well as the trend toward multiple jobs for short e r

periods of time—are challenging companies to develop ways to generate a

re t u rn on the considerable re s o u rces invested in re c ruiting, hiring, and train-

ing MBA talent.

MBA re c ruiting competition is

f i e rce. Survey results re c e n t l y

re p o rted by Business Wi re i n d i c a t e

that companies spend from $9,000

to $12,000 in direct costs to re c ru i t

one MBA. Corporations use six-figure

s t a rting salaries, signing bonuses,

stock options, and high-pro f i l e

assignments to get the top students—

only to see them jump to other org a n-

izations offering higher pay or more

i n t e resting opportunities. The key to

maximizing the value-adding potential

of these highly mobile employees lies

in retaining them.

To d a y ’s MBA degree is being

sought by a generation of students

with a wide range of employment

options and very diff e rent views on

the nature of work. Graduates evalu-

ating salaries, job re s p o n s i b i l i t i e s ,

and opportunities for advancement

a re also looking for the “right” corpo-

rate culture, one that incorporates

challenges, options, and values.

And yet, even those companies

with managers actively involved in

social and environmental issues often

fail to see this as a potential re c ru i t-

ing tool and have been slow to

translate the need for these skills into

corporate-wide re c ruiting practices

and employee training programs.

G R A D U AT E S A R E L O O K I N G F O R T H E“ R I G H T ” C O R P O R AT E C U L T U R E , O N ET H AT I N C O R P O R A T E S C H A L L E N G E S ,

O P T I O N S , A N D V A L U E S .

5

QUESTIONS TO CONSIDERCompanies have a key role to play in shaping MBA education. As

the ultimate target audience for business school programs, the busi-

ness community has significant influence over how schools stru c t u re

their training and design curricula. Yet, business schools re p o rt that

corporations have been lax in sending signals about the need for train-

ing in environmental and societal stewardship, either through their

re c ruiting eff o rts or in their job and internship offerings. There are

some encouraging exceptions, however.

The following questions can help individuals and companies assess

w h e re they stand in influencing the development of a labor pool trained

to manage the environmental and societal issues businesses face.

R e c ruiting Practices

w Do you screen for environmental and societal problem-solving skills?w Do your corporate recruiting materials communicate the company’s position and

activities on societal and environmental topics in management? w Do you discuss the company’s societal and environmental challenges

during interviews? w Do you use scenario questions to explore a candidate’s approach to societal and

environmental issues as business opportunities? w Do you provide feedback to placement office staff regarding candidate interview

performance on societal and environmental topics?

Corporate Actions

w Do you support schools that integrate societal and environmental topics into their core curricula or offer concentrations or joint degrees in these areas?

w Does your university relations staff communicate the corporate thinking on societal and environmental issues to the universities the company supports?

w Do company executives and board members use their university boardpositions to promote societal and environmental management training?

w Do you offer internships and consulting projects that allow students to gain experience in managing societal and environmental business challenges?

w Do you support student clubs and activities that focus on societal and enviro n -mental business concerns?

Alumni Activities

w Do you share your thoughts on the importance of societal and environmental business topics in the curriculum and in activities with your alma mater?

w Do you volunteer to speak on such issues in seminars or workshops sponsored by the business school? Or serve as a networking resource for students?

w Do you earmark your financial contributions to support teaching and research on environmental and societal business issues?

6

Corporate Champions for Education

w The Ph.D. Project is an example of corporate intervention to bolster minority enroll-ment in business education. Companies, universities, and academic organizationscollaborate to increase the number of minority business school professors by provid-ing a network and support during their Ph.D. education. These new professors act asrole models and mentors for other MBA and Ph.D. students.

w Established by Michael Porter of Harvard Business School, the Initiative for aCompetitive Inner City brings together expertise and resources of corporations anduniversities in an effort to build healthy economies in America’s inner cities that cre-ate jobs, income, and wealth for local residents. There is opportunity to developsimilar partnerships between companies and MBA programs that address other envi-ronmental and social issues. MBA students have internships in inner city businessesas one of the program’s core activities.

w Campus Compact is a coalition of college and university presidents committed tohelping students develop the values and skills of citizenship through participation incampus-based public and community service. These types of partnerships linkingbusiness and university leaders provide vision and support for academic change.

For more information on these initiatives, refer to the following websites: the Ph.D. Project,www.phdproject.com; Initiative for a Competitive Inner City, w w w. i c i c . o rg; and Campus Compact, www.compact.org.

{ David Reed, D i rector of Recru i t i n g / A m e r i c a s ,Andersen Consulting 4

7

the envi ronm en ta l s t eward ship ch al l e n g e

E n v i ronmental stewardship in a corporate setting cuts across business func-

tions and can include responsibilities such as maintaining the company’s

license to operate, finding and implementing efficiency improvements and

cost reductions, and seeking new business opportunities using the enviro n-

ment as driver of innovation.5

P rotecting a company’s license to operate involves having systems in place to

apply for permits, monitor and re p o rt perf o rmance, and appropriately dispose

of waste. Failing to carefully manage these processes can result in the tempo-

r a ry closure of facilities, delays, and fines.

The Organisation for Economic Co-Operation and Development estimates that

compliance with environmental and safety laws costs U.S. companies more

than $100 billion each year not including fines and closure s .6

8

{

HOW ENVIRONMENTAL TOPICS AREI N C O R P O R AT E D : INSTITUTIONAL SUPPORT

Inclusion of societal and enviro n -

mental topics in the business school

curricula and in institutionally support e d

a c t i v i t i e s is largely the result of pioneer-

ing e ff o rts by small groups of

dedicated faculty and committed

MBA students.

Many students seek to develop

their business leadership potential in

addition to learning basic analytical

business skills. They challenge their

MBA programs to provide additional

l e a rning venues and opport u n i t i e s —

such as project-based experiential

l e a rning and leadership training—that

will allow them to expand core skills

gained in the classroom and develop

the strategic thinking they will need to

grapple with societal and environmental

business challenges.

Improving production efficiency or siting facilities in eco-industrial parks helps

the financial bottom line by reducing waste and lowering waste transport costs.

The Dow Chemical Company, in partnership with the Natural Resources Defense

Council, is working to cut its production of toxic chemicals targeted by envi-

ronmentalists by 37 percent and to reduce the release of these chemicals to the

air or water by 43 percent. Dow’s $3.1 million investment to make these

changes is expected to save nearly $5.4 million and improve product quality or

even add to production capacity in some businesses.7

The most significant business opportunities, however, lie in developing new

technologies, introducing new products, and penetrating new markets to lever-

age the environment as a source of competitive advantage. Companies such as

E n ron and BP Amoco are creating new businesses and renewable energy pro d-

ucts anticipating growing demand for low-cost power that does not contribute

to global climate change.

Corporate and business school eff o rts mirror each other: as companies seek

o p p o rtunity in environmental drivers,8 innovative business schools are train-

ing environmentally literate students to recognize these opportunities and

develop the business strategies to leverage them successfully.

9

{

Schools emphasize the importance

of environmental issues in business

t h rough conferences and seminars

that facilitate the interchange of

i n f o rmation between the business

c o m m u n i t y, nonprofit org a n i z a t i o n s ,

and government agencies. Examples

include Rensselaer Polytechnic

I n s t i t u t e ’s annual corporate aff i l i a t e

p rogram, “Linking Enviro n m e n t a l

Strategy to New Product Development

and Marketing,” and a conference on

e n v i ronmental information disclosure s

and stakeholder involvement held at

Vanderbilt University.

Business schools also offer

a variety of experiential learn i n g

o p p o rtunities ranging from o r i e n t a-

tion activities to established

on-going programs. Those focusing

on environmental issues in business

include the Berkeley Solution Gro u p

at the University of Californ i a ,

B e r k e l e y, which provides nonpro f i t

and small business consulting,

and the University of Michigan’s

Michigan Business Assistance

Domestic Corps, which offers tech-

nical and management assistance to

community service organizations and

local businesses.

VA N D E R B I L T U N I V E R S I T Y S T U D E N T S V O L U N T E E R T O H E L P S P R U C EU P T H E S E C O N D H A R V E S T F O O D B A N K WA R E H O U S E .

Some business schools have

established centers that focus solely

on environmental issues; others have

f o rmed alliances with established

university institutes working on

these issues. The Owen Business

School at Vanderbilt is part of the

Vanderbilt Center for Enviro n m e n t a l

Management Studies, which pro-

vides guidance and support

for the interd i s c i p l i n a ry study of

e n v ironmental business, policy, and

technology issues. The Kenan-Flagler

Business School at the University of

N o rth Carolina, Chapel Hill, is part

of the Kenan Institute’s Center for

Global Business Research, which

assesses corporate enviro n m e n t a l

management practices and dissemi-

nates this information to business,

g o v e rnment agencies, and enviro n-

mental interest groups.

1 0

STUDENT INITIATIVESStudent-led initiatives are another

i m p o rtant source of enviro n m e n t a l

training at many business school

c a mpuses. On many campuses, stu-

d e n t - o rganized environmental gro u p s

help to determine how the school

a p p roaches environmental topics.

Since most MBA students are only

on campus for two years, the existence

of ongoing, long-term student initiatives

demonstrates exemplary commitment.

For example, the Illinois Institute of

Technology and Tulane University both

have student chapters of the Air and

Waste Management Association. Tulane

also has clubs with broader focus,

such as their Business Council for

Sustainable Development. Dartmouth,

Northwestern, Stanford, and the

University of Texas at Austin have

e n v ironmental management clubs that

offer a broad spectrum of activities

from campus environmental improve-

w The York University Schulich School of Business in Canada offers an MBA specialization in business and the environment.

w At INCAE in Costa Rica, all students are required to complete a field project that focuses on societal, economic, and environmental issues relevant to business development in Latin America.

w ITESM in Mexico offers MBA students at the Graduate School of Business and Leadership (EGADE) a chance to specialize in environmental or societal fields.

w INSEAD in France houses the Center for Management of Environmental Resources (CMER), a specialized environmental research and teaching facility created through a partnership between INSEAD and international corporations.

w The Institute for Management and Development (IMD) in Switzerland offers an environmental management research project at the school, entitled “Managing the Industrial Business Environment (MIBE).” The school works with a number of companies to give faculty and MIBE participants hands-on experience in pilot projects.

w The Asian Institute for Management (AIM) in the Philippines supports faculty research on corporate environmental management in Southeast Asia, including ISO 14000, trade and environment, and environmental awareness. The Institute’s multinational character and experiential learning curriculum prepare students to understand and work in multicultural environments.

a s am pl i ng o f in ter nat iona l MBA p ro gr am act iv i t ie s B E Y O N D G R E Y P I N S T R I P E S B E G I N S A N E X P L O R AT I O N O F C O M M I T M E N T S A N D I N N O VAT I O N S I N T R A I N I N G F O R

B U S I N E S S A N D E N V I R O N M E N T A L / S O C I E T A L M A N A G E M E N T I N B U S I N E S S S C H O O L S O U T S I D E T H E U N I T E D S T AT E S .

ments to strategic business opportuni-

ties. Vanderbilt’s student, faculty, and

staff service group, “100% Owen,” is

involved in various projects including

the cleanup of e n v i ronmentally sensi-

tive areas in cooperation with the

N a t u re Conservancy of Tennessee. Net

Impact: New Leaders for Better

Business, formerly known as Students

for Responsible Business, with chapters

at more than 100 graduate business

schools throughout the United States,

provides its 1,300 members with a

f o rum for learning about entre p re-

neurship, corporate re s p o n s i b i l i t y,

e n v i ronmental management, and com-

munity development.

ENVIRONMENTAL TOPICS IN THE CURRICULUM

Faculty leadership is critical in

getting and keeping enviro n m e n t a l

components in the curriculum. A core

g roup of faculty in leading-edge envi-

ronmental disciplines is indicative of

institutional commitment and substan-

tial investment in enviro n m e n t - b u s i n e s s

training re s o u rces. Such an institution

is also likely to be a leading source of

e n v i ronmental business consulting and

managerial talent.

For students, the strongest evidence

of a topic’s relevance to business is its

inclusion in the core business curr i c u-

lum. Thirty-two of the 56 business

schools re p o rting environmental activi-

ties had at least one core class with

e n v i ronmental management or sustain-

ability content.

E n v i ronmental topics are most fre-

quently incorporated into core modules

such as ethics, public policy and law,

and economics. Finding enviro n m e n t a l

content in management disciplines

such as accounting, marketing, and

o rganizational behavior is rare. The

University of Colorado, Denver, is a

standout with environmental compo-

nents in all three of these disciplines.

1 1

S T U D E N T - L E D I N I T I AT I V E SA R E A N O T H E R I M P O R T A N T

S O U R C E O F E N V I R O N M E N T A LT R A I N I N G AT M A N Y B U S I N E S S

S C H O O L C A M P U S E S .

}1 2

Electives on environmental busi-

ness topics vary widely from risk

assessment to full-cost accounting,

p roduct design management, corporate

s t r a t e g y, and business development.

Most common are electives in strategy

and environmental management that

draw on various disciplines. Of the 56

schools re p o rting environmental activi-

ties, 43 had at least one elective with

e n v i ronmental components and 28

schools re p o rted having two or more.

A few business schools have

developed special programs that off e r

in-depth environmental management

training. The University of Michigan,

Duke University, and Yale University

o ffer dual degrees with their enviro n-

mental sciences programs. Other

schools, such as the University of

Texas at Austin, and Rensselaer

Polytechnic Institute, offer enviro n-

mental management concentrations

within their MBA pro g r a m s .

“The Dialectics of Competency Acquisition: Pollution Prevention in Electric Generation.” D. Geffen and A. Marcus. Strategic Management Journal. December 1998.

“Enviropreneurial Marketing Strategy: The Emergence of Corporate Environmentalism as Market Strategy. ” A. Menon. Journal of Marketing. January 1997.

“Capital Contests: National and Transnational Channels of Corporate Influence on Climate Change Negotiations. ” D.L. Levy and D. Egan. Politics and Society. September 1998.

“A Resource-Based Perspective on Corporate Environmental Performance and Profitability. ” P.A. Fouts and M.V. Russo. Academy of Management Journal. June 1997.

“Sustainability and the Corporation—Criteria for Aligning Economic Practice with Environmental Protection. ” F. Westley and H. Vredenburg. Journal of Management Inquiry. June 1996.

most frequently cited articles on environmental issues in business

1 31 3

th e soc ia l s tewa rds hip cha l l e n g e

The re c i p rocal relationship between business and society poses chal-

lenges and provides opportunities for managers in ways both similar to

and yet distinctly diff e rent from environmental issues. While it has become

easier to see what “environmental literacy” means in a manager, skill sets

for the broader business/societal relationship are not as easy to pinpoint.

The skills needed to be effective in a complex social context range from devel-

oping resources internally to reaching out to new stakeholders externally; from

perceiving opportunities in advance to grasping opportunities as they arise; from

addressing complicated values issues to paying attention to prosaic details.

Examples of strategies that benefit business and society include the following:

w Workforces that sustain businesses and communities…S e rvice industries depend on quality service, often delivered by low-

wage workers, to attract repeat customers and compete in tough

marketplaces. Managers at Marriott Hotels find that employee absen-

teeism goes down and customer service quality goes up when they pro v i d e

job support such as after-hours child care, public transportation vouchers,

and immigration counseling. Supporting a workforce at the front line of

s e rvice delivery benefits the business as well as the community.

1 4

w Inner-city business opportunities…The business potential of inner

cities is often overlooked because of

c o n c e rn about poverty and crime. But

businesses that take the time to do

p roper re s e a rch can develop new

m a rkets even as they re i n v i g o r a t e

communities. The Finast superm a r k e t

chain opened highly successful gro-

c e ry stores in the central-city area of

Cleveland after conducting ethnic

marketing studies re g a rding food

p re f e rences. They also worked to

f o rge relationships with local

c h u rches to find loyal workers and

to convince potential customers they

w e re delivering quality foods, not

s e condhand pro d u c e .

Business schools provide a

s u p p o rtive climate where future man-

agers can learn the skills they will

need to operate effectively at the

intersection of business concerns and

societal needs. This year’s surv e y

looks at how MBA programs appro a c h

the interconnectedness of business

and society as well as how faculty

re s e a rch stimulates new ideas about

the re c i p rocal role of business in

s o c i e t y. Because social issues are just

beginning to make inroads into busi-

ness school programs, the surv e y

concentrated on building blocks such

as extracurricular student pro g r a m s

and faculty re s e a rch that will pro v i d e

a foundation for the more challenging

task of curriculum revision.

Nine of the surv e y ’s top ten

schools organized conferences, semi-

nars, and/or speaker series on social

issues. Nort h w e s t e rn University

hosted three conferences, including

“Social Enterprise: Deploying

Business Skills in the Non-Pro f i t

S e c t o r.” The University of Notre

Dame organized a speaker series

focused on ethical dimensions of

leadership, and Case We s t e rn

University organized a Wo r k f o rc e

2000 conference entitled

“Capitalizing on Diversity: The

D i ff e rence is Management.”

T h ree themes—social enterprise,

ethics, and diversity—were fre q u e n t l y

cited by the schools as examples of

what they were doing in the area of

business and social issues. These

themes are critical for both the con-

1 5

tent and skills they convey. However,

they stop short of integrating social

c o n c e rns into the very chart e r, opera-

tions, and sources of revenue for

business. “Social enterprise,” for

example, examines mission-driven

o rganizations and partnerships, but is

less concerned with business practice

in the organizations where most MBA

students are likely to secure employ-

ment—multinational corporations and

p rofessional firms. Ethics tends to

e x p l o re behavior and morality at the

level of individual choice, as opposed

to the dynamic, systemic engagement

of business in addressing complex

social problems.

w Global Initiatives in Management at Northwestern University provides students with practical training in the global marketplaceduring two-week assignments in foreign countries.

w MBAid at Stanford University is a nonprofit organization run by students to promote sustainable development worldwide. MBAid members have worked in Bangladesh, Central America, Brazil, Cameroon, and Vietnam.

w The William Davidson Institute Business Assistance Program at the University of Michigan sends students to international sitesincluding Russia, China, Vietnam, India, and parts of Africa to help countries make a transition to a free market economy.

w The MBA International Internship Program at the University of North Carolina provides short-term summer assignments in Asia through the Kenan Institute Asia in Bangkok.

p ro gr ams of fer i ng mul t icu l tur a l oppor tuni t ies

1 6

Nine of the top ten schools off e r

institutional support through commu-

nity development projects, intern s h i p

funds, or loan forgiveness pro g r a m s

to students pursuing business con-

c e rns in social domains. Stanford

students founded Start Up, which

p romotes economic development in

the depressed areas of East Palo Alto

t h rough training, capital investment,

and other assistance to local busi-

nesses. Students at Yale School of

Management voluntarily pledge

i n t e rnship support for other first-year

students who intern in the public and

n o n p rofit sectors.

Many school activities are initi-

ated and run by students, with

schools stepping in to pro v i d e

re s o u rces and continuity. Student

demand has fueled the growth of

experiential learning as a way to

understand business/societal connec-

tions and to gain experience that is

p rofessionally pragmatic and person-

ally satisfying.

“A Survey of Corporate Governance.” A. Shleifer and R.W. Vishny. Journal of Finance. June 1997.

“What is the Difference between Organizational Culture and Organizational Climate—A Native’s Point-of-View on a Decade of Paradigm Wars.” D. R. Denison. Academy of Management Review. July 1996.

“What Makes Teams Work: Group Effectiveness Research from the Shop Floor to the Executive Suite.” D.E. Bailey and S.G. Cohen. Journal of Management. 1997.

“The Ethical Superiority and Inevitability of Participatory Management as an Organizational System.” D. Collins. Organization Science. September-October 1997.

“The Link between Ethical Judgment and Action in Organizations: A Moral Approbation Approach.” T.M. Jones and L.V. Ryan. Organization Science. November-December 1997.

most f requently cited articles on social issues in business

}

FACULTY RESEARCHFaculty re s e a rch is critical to a

v i g o rous learning climate. Faculty

re s e a rch defines emerging areas, pro-

vides new ideas that innovative

business managers can implement,

and documents experiments. A

respected re s e a rch portfolio helps

faculty members reach corporate

audiences and influence peers within

and across disciplines. And, ulti-

m a t e l y, since faculty teach what they

re s e a rch, it brings new knowledge

into the curriculum and exposes a

wider range of students to new ideas.

Intellectually engaged faculty can

also help students discover new

themes and readings, pursue inde-

pendent projects, and maintain their

e n e rgy and commitment.

1 7

FA C U L T Y R E S E A R C H D E F I N E S E M E R G I N G A R E A S , P R O V I D E S N E W I D E A S T H A T I N N O V A T I V E B U S I N E S S M A N A G E R S

C A N I M P L E M E N T, A N D D O C U M E N T S E X P E R I M E N T S .

1 8

The survey for Beyond Gre y

P i n s t r i p e s took a comprehensive look

at current faculty re s e a rch on busi-

ness/societal issues to determine the

level of re s e a rch literature on these

complex, multifaceted issues and, as

an indication of the quality of train-

ing being off e red, identified the

schools with the most re s e a rch in

these areas. Three online databases

w e re used to identify faculty re s e a rc h

published in leading business jour-

nals. The results show small, bright

a reas of innovative work, but also

l a rge areas of blank canvas waiting

to be filled.

Even top schools had as few as

t h ree or four re s e a rch articles pub-

lished on business/societal concern s

a c ross their entire faculty. Many excel-

lent re s e a rch schools scored zero for

published articles. If re s e a rch is not

happening, there is a serious void in

business school content. If re s e a rch is

happening, but not finding its way into

the leading business journals, that

also presents a serious problem since

faculty must “publish or perish.”

Potential champions could be forc e d

to leave or to divert attention to other

a reas if they can not build a care e r

based on business/societal issues.

These faculty champions need finan-

cial and intellectual support to

succeed in the academic arena and

bring their ideas into the classro o m .

E V E N T O P S C H O O L S H A D A S F E W A S T H R E E O R F O U R R E S E A R C H

A R T I C L E S P U B L I S H E D O N B U S I N E S S / S O C I E T A L C O N C E R N S ,A C R O SS T HE I R E N T IR E FA C U LT Y.

1 9

{

WHAT A DIFFERENCE A YEAR MAKES In 1998, the World Resourc e s

I n s t i t u t e ’s surv e y, G rey Pinstripes

with Green Ti e s, found that a num-

ber of leading U.S. business schools

o ff e red environmentally f o c u s e d

electives, while some a d d re s s e d

e n v i ronmental subjects in c o re cur-

ricula. But the marketplace signals

of corporate interest and business

school commitment remain muddy.

In 1999, the University of Nort h

C a rolina, the University of Californ i a ,

and the University of Pennsylvania’s

W h a rton School formalized their pro-

grams and re s t ru c t u red courses to

include environmentally related top-

ics. The University of Te n n e s s e e

and the University of Wa s h i n g t o n

had key faculty leave and re d u c e d

their commitments, citing conflict-

ing educational priorities and

limited re s o u rc e s .

l eading mba programs

The Beyond Grey Pinstripes s u rvey was sent to the 313 North American

graduate business schools accredited by the International Association for

Management Education (AACSB). This includes 40 percent of the 748

business schools in the United States. Responses were received from 110

schools, with 60 re p o rting activity on environmental and/or social topics.

Respondents included 43 of the top 50 business schools, as ranked by U . S .

News & World Report, including all of the schools ranked in the top 10 and

24 of the top 25.9

The survey captured information on institutional support, student coursework,

and faculty re s e a rch. Information was gathered through school and faculty sur-

veys, from school promotional materials, from online databases, and fro m

members of Net Impact (formerly Students for Responsible Business) chapters

on business school campuses.

2 0

PROGRAMS INCORPORATING ENVIRONMENT-BUSINESS ISSUESThe survey of environment-business programs evaluated student coursework,

including core and elective courses, concentrations, and joint degrees; institutional

s u p p o rt, including loan forgiveness programs, internship funds, experiential learn i n g

modules, and community service opportunities; and faculty re s e a rch and publica-

tions. One to five points were awarded for perf o rmance in each of these categories.

Note: Schools are listed in alphabetical order within each tier. Complete details of the sur-vey results and additional information on the participating business schools can be foundat w w w. w r i . o rg / w r i / b s c h o o l s. For a list of other schools re p o rting activity, see page 27.

Student coursework Institutional support Faculty research(50 percent of total) (30 percent of total) (20 percent of total)P R O G R A M S A T T H E C U T T I N G E D G E

C o rnell University (Johnson)

G e o rge Washington University

Rensselaer Polytechnic Institute (Lally)

Tulane University (Fre e m a n )

University of Michigan—Ann Arbor

University of North Carolina–Chapel Hill (Kenan-Flagler)

University of Pennsylvania (Whart o n )

University of Te x a s – A u s t i n

Vanderbilt University (Owen)

P R O G R A M S S H O W I N G S I G N I F I C A N T A C T I V I T I E S

C a rnegie Mellon University

Columbia University

H a rv a rd University

Illinois Institute of Technology (Stuart )

Indiana University (Kelley)

N o rt h w e s t e rn University (Kellogg)

S t a n f o rd University

University of California–Los Angeles (Anderson)

University of Colorado–Denver

University of Pittsburgh (Katz)

Yale University

P R O G R A M S W I T H M O D E R A T E A C T I V I T I E S

D a rtmouth College (Tu c k )

Duke University (Fuqua)

University of California–Berkeley (Haas)

University of Californ i a – I rv i n e

University of Maryland—College Park

University of Minnesota (Carlson)

University of Oregon (Lundquist)

University of Vi rginia (Dard e n )

mba programs incorporating environment-business issues

2 1

MBA PROGRAMS ADDRESSING THE INTERSECTION OF BUSINESS AND SOCIETYThe survey of social programs evaluated institutional support including loan forgive-

ness p rograms, internship funds, experiential learning modules, and community serv i c e

o p p o rtunities as well as faculty re s e a rch and publications. An evaluation of student

coursework will be included in the 2001 surv e y. Concentrations and joint degre e s

based on social issues in business were included in the institutional support category.

mba programs incorporat ing soc ieta l -business i ssues

Note: Schools are listed in alphabetical order within each tier. Complete details of the sur-vey results and additional information on the participating business schools can be foundat w w w. w r i . o rg / w r i / b s c h o o l s. For a list of other schools re p o rting activity, see page 27.

Institutional support Faculty research(75 percent of total) (25 percent of total)P R O G R A M S AT T H E C U T T I N G E D G E

Case We s t e rn Reserve University (We a t h e rh e a d)

H a rv a rd University

Loyola Marymount University

N o rt h w e s t e rn University (Kellogg)

S t a n f o rd University

University of Michigan—Ann Arbor

University of Notre Dame

University of Pennsylvania (Whart o n)

University of Pittsburgh (Katz)

University of Vi rginia (Dard e n )

P R O G R A M S S H O W I N G S I G N I F I C A N T A C T I V I T I E S

Arizona State University

Columbia University

Cornell University (Johnson)

Dartmouth College (Tuck)

George Washington University

Texas A&M University

Tulane University (Freeman)

University of California–Berkeley (Haas)

University of Colorado–Denver

University of North Carolina–Chapel Hill (Kenan-Flagler)

Wake Forest University (Babcock)

Yale University

P R O G R A M S W I T H M O D E R A T E A C T I V I T I E S

Duke University (Fuqua)

Georgetown University

Indiana University (Kelley)

Michigan State University (Broad)

New York University (Stern)

University of California—Los Angeles (Anderson)

University of Chicago

University of Detroit Mercy

University of Maryland—College Park

University of Texas—Austin

University of Washington

Vanderbilt University (Owen)

2 2

Stuart HartAssociate Pro f e s s o r, Management;

and Dire c t o r, Sustainable Enterprise

I n i t i a t i v e, Kenan-Flagler Business School,

University of North Carolina-Chapel Hill.

A leader in analyzing and inter-

p reting sustainability pre s s u res on

business, Stuart Hart founded the

Sustainable Enterprise Initiative at

the Kenan-Flagler Business School,

and is the moving force behind the

development of UNC’s Center for

I n t e rnational Business Education and

R e s e a rch, which focuses on incorpo-

rating sustainable development into

business strategies.

While at the University of

Michigan, Hart founded the Corporate

E n v i ronmental Management Pro g r a m

(CEMP), a dual master’s degree pro g r a m

of the Business School and the School

of Natural Resources and Enviro n m e n t .

CEMP graduates now work on some of

the most interesting sustainability

p ro jects in corporate America.

1999 faculty pioneer awards

Innovation, re s e a rch, and institutional activities reflect strong faculty lead-

ership. Faculty Pioneer Aw a rds are presented to outstanding faculty

members in recognition of their eff o rts to incorporate social and envi-

ronmental topics into the curricula and into the activ it ies of their

business schools.

The 1999 Faculty Pioneer Aw a rd recipients, Stuart Hart, James Johnson, Jr. ,

and Lester Lave, have changed learning opportunities in their business schools,

their communities, and in corporations around the world. John Ehrenfeld is also

being honored for lifetime achievement as a faculty leader. The recipients were

selected by a corporate panel of judges.1 0

S T U A R T H A R T

{2 3

James H. Johnson, Jr.D i re c t o r, Urban Investment Strategies

C e n t e r, Frank Hawkins Kenan Institute of

Private Enterprise; and E. Maynard Adams

Distinguished Professor of Geography,

Sociology & Business Management, K e n a n -

Flagler Business School, University of Nort h

C a rolina-Chapel Hill.

James Johnson’s multidisciplinary

i n t e rests include teaching MBA

courses on social entre p re n e u r s h i p

and on managing diversity, as well

as re s e a rch on the impact of race,

e t hn i c i t y, income disparity, and immi-

gration on urban economic and social

v i a b i l i t y. Under his leadership, the

Urban Investment Strategies Center

(UISC) has become a prototype for

p a rtnerships between universities,

the urban community, and the private

sector for urban reinvestment and

revitalization. The UISC Durh a m

Scholars Program brings young peo-

ple to the campus to work with

MBA volunteers.

Johnson is director of the Urban

Enterprise Corps (UEC), which

re c ruits and trains MBAs from leading

business schools across the country

to provide technical and managerial

assistance to inner-city businesses

t h rough community-based economic

development institutions. UEC assists

community development corporations,

minority-owned banks, credit unions,

and savings and loan associations

that serve economically distre s s e d

communities. Since 1994, UEC has

placed 22 MBAs from 15 U.S. gradu-

ate business schools in economic

development org a n i z a t i o n s .

J A M E S J O H N S O N , J R .

{

2 4

Lester B. LaveH a rry B. and James H. Higgins Professor of

Economics; and University Professor and

D i re c t o r, Carnegie Mellon Green Design

Initiative, Graduate School of Industrial

Administration, Carnegie Mellon University.

Lester Lave holds full pro f e s s o r-

ships at Carnegie Mellon’s business,

engineering, and public policy

schools. He is the head of the univer-

s i t y ’s widely respected Green Design

Initiative, a university-govern m e n t -

business initiative to improve the

design and production of systems

that prevent pollution.

L a v e ’s “Green Engineering and

Management” course was a pioneer in

business school executive education

p rograms focused on the enviro n-

ment. His current re s e a rch focus

includes policy analysis; enviro n m e n-

tal economics; risk analysis of air

pollution, carcinogenic chemicals,

and dams and highways; and enviro n-

mental product and process design.

He has served on numerous advisory

b o a rds and committees including the

National Academy of Sciences, the

E n v i ronmental Protection Agency,

the National Research Council, the

American Association for the

Advancement of Science, and the

Aspen Institute.

L E S T E R B . L AV E

FA C U L T Y L E A D E R S H I P I S C R I T I C A LI N G E T T I N G A N D K E E P I N G E N V I R O N -M E N T A L A N D S O C I A L C O M P O N E N T S

I N T H E C U R R I C U L U M .

2 5

1999 LIFETIME ACHIEVEMENT AWARDJohn EhrenfeldD i re c t o r, Te c h n o l o g y, Business &

E n v i ronment Program, Massachusetts

Institute of Technology; Senior Researc h

Associate, Center for Te c h n o l o g y, Policy &

Industrial Development, Massachusetts

Institute of Technology; and Senior Lecture r,

Technology & Policy Program, Depart m e n t s

of Chemical Engineering & Civil and

E n v i ronmental Engineering, Massachusetts

Institute of Te c h n o l o g y.

John Ehre n f e l d ’s work in the field

of environmental management is a

testament to his scholarship and ded-

ication. In addition to teaching

e n v i ronmental and technology man-

agement and policy, he conducts

re s e a rch on pollution pre v e n t i o n ,

industrial ecology, enviro n m e n t a l

management and policy, enviro n m e n-

tal practice in businesses, and the

ways in which businesses manage

e n v i ronmental concerns.

Although his appointment at

MIT is not in the business school,

E h re n f e l d ’s impact on the field of

e n v i ronmental management can not

be overstated. He established the

Te c h n o l o g y, Business and Enviro n m e n t

(TBE) program, an interd i s c i p l i n a ry

educational, re s e a rch, and policy

p rogram, at a time when business

re g a rded environmental issues with

hostility and mistrust and academics

thought they were irrelevant to scholar-

ship. In view of how many enviro n -

mental management professors have

e m e rged from that program, Ehre n f e l d

d e s e rves substantial credit for the

s i gnificant shift in these attitudes.

J O H N E H R E N F E L D

FA C U L T Y R E S E A R C H P R O V I D E S N E W I D E A S T H A T I N N O V AT I V E B U S I N E S S

M A N A G E R S C A N I M P L E M E N T .

4

Each World Resources Institute Report re p resents a timely, scholarly tre a t m e n t

of a subject of public concern. WRI takes responsibility for choosing the study

topics and guaranteeing its authors and re s e a rchers freedom of inquiry. It also

solicits and responds to the guidance of advisory panels and expert re v i e w e r s .

Unless otherwise stated, however, all the interpretation and findings set fort h

in WRI publications are those of the authors.

Copyright © 1999. World Resources Institute, Washington, D.C. All rights re s e rv e d .

L i b r a ry of Congress Catalog Card No. 99-67374

Printed in the United States of America on Recycled Paper.

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