One of my assignments at my new job is to help develop the language of our new M.B.A. program set to launch this fall. Since there are several M.B.A. programs in the college-rich pioneer valley of western Massachusetts, our distinguishing factor is our Catholic identity and commitment to social justice.
Therefore, one of our models is the famously Catholic Notre Dame and its M.B.A. program. In addition to being considered one of the top graduate business programs in the country, it uses language in its course descriptions that reflects its religious values. Phrases like "ethical issues" "societal concerns" and "global impact" are disseminated throughout the text.
Browsing through Notre Dame's Mendoza College of Business web site, I became convinced that they were committed to cultivating ethical-minded businesss students who would go out and change the world. Imagine a society of business leaders who thought about the well being and safety of their clients and the impact of each decision they made. I think about local coffee-house owners that only buy fair-trade beans. I think of massive philanthropists like Newman's Own or the Bill and Melinda Gates Foundation.
Other times, I'm not so optimistic. Such an idealistic world requires all business owners to behave in the same manner; including ethical concerns into their cost-benefit analyses. All it takes is one business to cut corners and produce a smaller retail price that pushes the more ethical entrepreneurs out on the streets. Then, the fair-trade buyers of the world with a savvy marketing team are really the only ones that survive.
I think of a successful insurance business. What makes them successful? Is it creating low competitive rates? Is it providing broad coverage? No, these things only get people in the door. What leads to long-term success is limiting risk. The insurance salesman that can spot a potential client and determine "you are likely to have an accident that is going to be an expensive claim," and deny that person coverage, is going to be a succesful salesman.
Is that morally rightous? No. Does it lower the risk pool and the rates for all the other clients? Of course. The insurance salesman that takes on that client for eithical reasons is going to run out of business. How can they survive in this economy?
And yet the Mendoza's undergraduate program is still rated number one in the country. Either the country's brightest minds are attracted to the humane aspects of its program or the creaters of the program itself feel their moral values are of great importance and necessary in today's world.
I wonder if the next generation of business leaders will carry this commitment to the dignity of all human persons with them as they shape our country. I wonder if this buisness model can be a successful one. More importantly, I wonder if the patrons of our country will support it.
I believe that wealth is a finite source. To bring others out of poverty is going to cost us and I'm not sure how much we are willing to give up.
I think it's worth engaging the next generation of business leaders and showing them examples of business leaders acting in their own private capacity as well as companies that do good.
ReplyDeleteThe recent example of the Google exec Wael Ghonim in Egypt shows what business leaders can do in their own capacity. Eventually execs at Google HQ said they were proud of what he did in Egypt.
Going back a half century there was a core group of business leaders that helped Truman sell the Marshall Plan to a skeptical American public and Congress. While a rebuilt Europe was in their interest as exporters, it was also in the global public interest to rebuild after WWII. When private and public interests align I think do-gooders should run with it.
There are other times where companies need a push and that's where consumer advocacy, legislation, regulation, and other public advocacy can come into play to influence corporate behavior.
For some examples of work Oxfam has done to engage companies see http://admin.oxfamamerica.org/issues/private-sector-engagement/what-oxfam-is-doing