The Association of MBAs, the worldwide association and accreditation agency for MBAs, recently confirmed its commitment to the development of responsible business leaders by announcing its adoption of the United Nation’s Principles for Responsible Management Education (PRME). The UN Global Compact developed the principles by a process involving a task force of 60 business school deans, university heads and other representatives of leading academic institutions. The six principles lay the foundation for a global commitment to responsible management education – a timely and highly relevant initiative in the light of recent corporate scandals.

With the adoption of the PRME, the Association of MBAs is giving a clear indication that the values of sustainability and corporate citizenship are fundamental to the MBA qualification. The Association has forcefully defended the MBA over the past year against new criticisms that business schools share the blame for the recent collapse of financial institutions. Critics have claimed that MBA teaching focuses too much on the drive for short-term financial gain and too little on the creation of sustainable growth and ethical values in business. In response, the Association has demonstrated that such notions of the MBA are outdated. Good quality business schools, offering accredited MBA programmes, have made significant positive changes to their courses over the last five to 10 years. Contrary to what is suggested, the development of skills in leadership, ethics, and corporate responsibility has long been a part of any accredited MBA programme.

A different approach
Nevertheless, most business schools recognise that, in the context of the current economic crisis, there is an opportunity (even an obligation) to review their approach to management education. The question is: can we do more to develop responsible managers with the right attitudes, skills and understanding to lead others in a complex and changing business environment? The challenge was expressed clearly by the Deputy Dean of London Business School at the Association of MBAs’ Annual Conference in May. He argued that management needs to be taken more seriously as a profession. The emphasis on professional management involves ensuring students understand the context of their decisions and take responsibility for their actions. So the notion of responsibility continues to emerge as a crucial component in future management teaching and practice.

Global commitment
So how do we make the desire to improve a reality? The PRME is one very important way of encouraging and supporting a global commitment to the development of responsible managers. Another is to ensure that the principles of responsible management form the basis of the quality standards and criteria for MBA accreditation. The Association’s accreditation criteria for the MBA and other Masters in Management qualifications are applied and recognised internationally. Now, over 165 business schools worldwide are offering MBAs that have met the Association’s accreditation requirements. Already, the criteria include requirements concerning corporate social responsibility, sustainability, ethics and leadership. However, the criteria will, over the next year, undergo an extensive review involving wide consultation with individuals, corporates, employers and academics. The intention is to create an exciting opportunity for the review to address the issue of responsible management, to determine what responsible management entails and to articulate what this means for the training, development and support of MBA students. The new criteria emerging from this initiative are likely to give confidence in the continuing relevance and value of the MBA, and will help us to respond to the increasing demand for responsible, professional business leaders. 

Jeanette Purcell is Chief Executive of the Association of MBAs