Five Tips for Choosing a Sustainable Business MBA Program

This article is sponsored by Amsterdam Business School.

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A growing number of MBA candidates are looking for sustainable business MBAs as global business takes on a greener outlook.

A sustainable business is defined broadly as one whose activities meet the needs of the present, without compromising the ability of future generations to do likewise. It takes into consideration the planet and people alongside profits.

In today’s planet-conscious climate, vast crops of green, sustainable business opportunities exist – from implementing eco-friendly products to harnessing clean energy.

Contrary to popular belief, being ‘green’ doesn’t have to contradict the traditional definition of ‘business’ – the purchase and sale of goods in an attempt to make a profit. For starters, the average return on green investments for large businesses is 48%, according to a Carbon Trust report.

There are also growing markets for businesses to explore. For instance, demand in the UK for low-carbon goods will grow by £5 billion (around US$8.4 billion) a year to £140 billion (US$236 billion) by 2015, according to the Department for Business, Innovation and Skills.

Companies that crack the code of sustainable business will become the icons of 21st-century capitalism, according to emeritus professor Stuart Hall of Cornell University – a big claim for big business, and a huge incentive for anyone thinking of embarking along this path.

Furthermore, Michigan University Professor Andrew Hoffman has compared sustainable business to the Renaissance, in terms of its impact on society.

Arno Kourula, assistant professor at University of Amsterdam Business School, agrees: “Certainly, a rethinking is in order at all levels – individual responsibility, organization culture and societal systems.”

“Some foundations will prevail, but much of the old thinking should be thrown in the garbage bin.”

Internationally, governments have been working to influence the shape of sustainable business. Accordingly Arno thinks it’s time to change the consensus: “Government definitely has an important role to play in sustainability and we need to move beyond negative ‘government sucks’ thinking in business schools.”

“While government can build so-called win-win partnerships with businesses, there are also many ‘win-lose’ and ‘lose-lose’ cases. In our MBA program, we aim to learn from all types of cases. However, based on hundreds of studies, we know that it can pay to be green and good.”

An MBA program should highlight a shift from organizational responsibility to understanding the roles of different actors in systemic sustainability, according to Arno. He also suggests businesses need to go beyond simply measuring activities, and instead integrate the measurement of outcomes into a constant loop of feedback and learning.

“In addition, we need further stakeholder engagement and partnerships as well as giving a voice to those who have not had one before. We tend to look for one-size-fits-all, silver bullet answers – but the future will focus on contextual and often bottom-up solutions.

“An MBA program should incorporate these changes in creating a new style of leadership based on the knowledge of key ideas, approaches and tools. It should impart an understanding and appreciation for both the public and private sector, and the for-profit and non-profit – providing the necessary leadership skills to tackle the tough challenges of today and tomorrow,” he adds.

“Pick an MBA program that is offered by a business school with a strong sustainability track record. For instance, Amsterdam Business School is a global hub for research on business and sustainability issues.”