5.10. Corporate Governance
There have been a great many instances of poor corporate governance and corporate social responsibility (CSR) in recent years in businesses around the world. The most widely reported cases have been the WorldCom and Enron collapses. Directors of public companies were alleged to be actively hiding losses in offshore accounts to boost their reported profitability. This malaise has now been exposed in Europe, with directors and auditors of Parmalat apparently guilty of similar malpractice. As global outsourcing spreads, the opportunities and risks of corporate financial catastrophe from poor governance increase. Several US apparel retailers have been subject to a multi-billion dollar class action from a group of Chinese workers in Saipan, for allegedly maintaining illegal working conditions. “The crisis can be viewed as a failure of boards of directors, accountants and others who let down corporate stakeholders.” says Paul Danos, Dean of Tuck School of Business at Dartmouth College in the US. Matt Tuchow, Professor of CSR at Geneva International Organisations MBA programme says, "Today no famous brand or publicly traded company is immune from potential attack by stakeholders who now expect more responsibility, accountability and transparency."
"CSR is a mandatory
course for all our MBAs"
Paul Danos, Tuck
European business schools are actively taking a lead in fostering good CSR management practices. Alessandro Lala an MBA applicant reports that he "met Manchester Business School at the World MBA Tour in Rome last year. It was great to speak face-to-face with an admissions officer. Amongst other things, I was impressed by their commitment to fostering good governance." Manchester Business School offers a number of electives, which look at the checks and balances used to manage the relationships between the board, management and investors/owners of a company. Those electives include: Business Law, Corporate Financial Management, Corporate Reputation and Competitiveness, Corporate Social Responsibility and Business Ethics. In addition, there is a CSR Club run by the students. Many US business schools have also responded to the CSR challenge. Harvard Business School came in for criticism because Jeffrey Skilling, the CFO of Enron was a Harvard MBA. Yet, Paul Danos of Tuck says, "…we screen our applicants in terms of their potential to be principled leaders and CSR is a mandatory course for all our MBAs."
| School Name | Country | % |
|---|---|---|
| Source: QS TopMBA.com International Recruiter Survey 2007 | ||
| Harvard Business School | USA | 100% |
| Columbia Business School | USA | 77% |
| Tuck School of Business at Dartmouth | USA | 73% |
| The Kellogg School of Management, Northwestern University | USA | 68% |
| Sloan School of Management, Massachusett Institute of Technology | USA | 64% |
| The Wharton School, University of Pennsylvania | USA | 59% |
| Stanford University Graduate School of Business | USA | 59% |
| IE Business School (Instituto de Empresa) | Spain | 45% |
| The University of Chicago Graduate School of Business | USA | 45% |
| McDonough School of Business, Georgetown University | USA | 36% |
| IESE Business School | Spain | 36% |
| University of Virginia's Darden School of Business | USA | 36% |
| The Fuqua School of Business, Duke University | USA | 36% |
| NYU Stern | USA | 32% |
| INSEAD | France | 27% |
| Melbourne Business School, The University of Melbourne | Australia | 18% |
| Yale School of Management, Yale University | USA | 18% |
| Marshall School of Business, University of Southern California, | USA | 18% |
| University of South Carolina, Moore School of Business | USA | 18% |
| Oxford University, Said Business School | UK | 18% |
| Kenan - Flagler Business School, University of North Carolina at Chapel Hill | USA | 18% |
| London Business School | UK | 14% |
| Stephen M. Ross School of Business, University of Michigan | USA | 14% |
| UCLA Anderson School of Management | USA | 14% |
| S.C. Johnson Graduate School of Management, Cornell University | USA | 14% |
| The School of Management, University of Bath | UK | 14% |
| Vanderbilt University, Owen Graduate School of Management | USA | 14% |
| W. P. Carey School of Business, Arizona State University | USA | 14% |
| IMD (CH) | Switzerland | 9% |
| Australian Graduate School of Management | Australia | 9% |
| ESADE Business School | Spain | 9% |
| Haas School of Business, UC Berkeley | USA | 9% |
| Thunderbird, The Garvin School of International Management | USA | 9% |
| RSM Erasmus University (NL) | Netherlands | 9% |
| Richard Ivey School of Business, The University of Western Ontario | Canada | 9% |
| Joseph L. Rotman School of Management, University of Toronto | Canada | 9% |
| Boston University School of Management | USA | 9% |
| Henley Management College | UK | 9% |
| Tepper School of Business, Carnegie Mellon University | USA | 9% |
| Babson College | USA | 9% |
| Joseph M. Katz Graduate School of Business, University of Pittsburgh | USA | 9% |
| Cranfield School of Management | UK | 5% |
| Warwick Business School, University of Warwick | UK | 5% |
| SDA Bocconi School of Management (Italy) | Italy | 5% |
| Judge Business School, University of Cambridge | UK | 5% |
| Kelley School of Business, Indiana University | USA | 5% |
| McCombs Sch. Bus., Univ. of Texas at Austin | USA | 5% |
| Goizueta Business School, Emory University | USA | 5% |
| Desautels Faculty of Management, McGill University | Canada | 5% |
| Manchester Business School | USA | 5% |
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