corporate social responsibility Archives – Page 2 of 3

March 5, 2020May 22, 2023

Preparing tomorrow’s leadership for climate change

Schools must help tomorrow’s leaders take decisions together, with those from several areas of expertise, while understanding how these decisions will affect different groups in different ways across the world, say the University of Gothenburg’s Thomas Sterner and Åsa Löfgren.

Global changes are so significant that geoscientists speak of Earth entering a new geological era, the ‘Anthropocene’, during which many crucial variables for the planet are controlled by man, and our activities and consumption patterns risk exceeding the planetary boundaries. This leads to a changed climate, acidification of the oceans, loss of biodiversity and many other global environmental problems. These problems are global, long term and uncertain. They are also interconnected and must be analysed together in order to find solutions that provide synergies and avoid those that solve one problem but worsen others.

For example, it is not sustainable to aggravate problems related to a loss of biodiversity, or vital water/nutrient cycles, when you are trying to solve the climate problem through a poorly conceived forest policy.

Biologists, physicists and other natural scientists document and analyse many of the changes mentioned above, and are usually the ones who write about planetary boundaries and the Anthropocene. Social scientists, meanwhile, are experts on how society and the economy work. Both of these areas of expertise are indispensable when analysing social causes and proposing solutions that are effective and politically feasible. Therefore, collaboration between economists, social scientists and natural scientists is urgently needed to discuss solutions.

An interdisciplinary approach

Business schools have the important task of preparing students to become tomorrow’s leaders in business and other organisations. It is vital that these aspiring leaders are given tools to understand our current and future predicament since it will be decisive for future success and, indeed, survival. One of the prerequisites for a sound future education is an interdisciplinary approach to problems where this is necessary. When it comes to sustainability, we need expertise that understands both natural and social sciences.

When training tomorrow’s leaders, standards must be high in all areas. We need interdisciplinary understanding of environmental challenges and opportunities, high ethical standards, and a capability to
work with leaders from other countries, cultures and disciplines.

The School of Business, Economics and Law at the University of Gothenburg (the School) has taken on this challenge in several ways. Most importantly, it is a strategic mission of the school to integrate sustainability into all education: ‘To develop knowledge, educate and foster independent thinking for the advancement of organisations, policy and a sustainable world’.

Over the the past decade, the school has turned its mission into practice by integrating sustainability-related learning outcomes for all undergraduate programmes and strengthening the progression of sustainability concepts between courses. This allows programme coordinators and lecturers to develop curricula in the knowledge that these learning goals must be met.

Sustainability days

Another important activity is the school’s compulsory sustainability days. The concept was introduced in 2013 and was implemented fully in all undergraduate programmes in 2016. It consists of three full days of focus on sustainability from various perspectives. The overall aim is to complement the sustainability content of courses by raising awareness and providing knowledge around three themes: challenges, responsibility, and solutions. During this time, students from different programmes meet and learn to work with, and respect, those from a variety of backgrounds.

At an international level, and in collaboration with Gothenburg’s Chalmers University of Technology, there is the school’s Environment for Development unit. With support from the Swedish International Development Cooperation Agency, the Environment for Development has trained PhDs from emerging markets in environmental economics for decades and helped build centres in more than 12 countries in the
Global South.

In the future, the unit’s plan is to co-teach master’s courses with students in several countries simultaneously. In a pilot course run at Chalmers this year, students in Asia, Africa and the US solved problems related to fairness in climate negotiations simultaneously. In a second step, students held discussions with real climate negotiators to develop their negotiating and leadership skills. A capability to work with leaders from other countries,
and understand the positions of other groups or countries, is key to addressing global environmental problems such as
climate change.

More specifically, while it is important to find effective solutions, it is also important to educate students about the income distributional effects of policy measures and their perceived fairness. These effects are vital determinants of political feasibility and aspects that must be considered carefully when policy instruments are selected and designed. The task is complex since policies need not only be feasible in Europe or the US, but globally.

There are ways that global environmental problems can be addressed. But the solution relies on there being leaders who are responsible, knowledgeable and understand the importance of, and are open to, collaboration with those who possess skills from other disciplines. business schools have a responsibility and an important role to play in the education of such leaders.

Thomas Sterner is Professor of Environmental Economics and Åsa Löfgren is an Associate Professor in the Department of Economics, part of the School of Business, Economics and Law at the University of Gothenburg.

Download the latest edition of the Business Impact magazine

Want your business school to feature in
Business Impact?

For questions about editorial opportunities, please contact:

Tim Banerjee Dhoul

Content Editor
Business Impact

Share this page with your colleagues

August 15, 2019May 22, 2023

Business schools for business and society

Business schools must understand how they can contribute to the wellbeing of society, adopting an active stance, writes Loïck Roche, Director and Dean at Grenoble École de Management

On 11 December 2017, the then French Minister of Environmental Transitions and Solidarity, Nicolas Hulot, announced in a speech, at the Medef Employer Federation in Paris: ‘We [the French Government] are going to help companies evolve in terms of their social objectives, which can no longer be limited to earning profits without regard for working women and men, and without consideration for environmental consequences.’

His proposed French Pacte Law (action plan for business growth and transformation) was put forward, with the goal of helping to ‘reintegrate morality in capitalism’.

To ensure financial objectives better support the greater good, the law will re-write two 200-year-old articles in the French Civil Code (articles 1832 and 1833, see box overleaf).

The articles redefine a company’s role as simply creating profit for shareholders. The proposed modifications will integrate social and environmental considerations. At the time of AMBITION going to press, the law was to be voted on in autumn 2018 and its primary actions could come into effect as early as 2019.

But, taking this news out of the context of the French arena, and into the wider global economy, could this development suggest that the era of the Chicago School and one of its most noted economists Milton Friedman – who coined the phrase ‘money matters’ – is over?

A reason for existence

The step change outlined above looks set to take business thought back to 19th and 20th century business magnate Henry Ford’s fundamental advice: ‘Business must be run at a profit, else it will die. But when anyone tries to run a business solely for profit, then also the business must die, for it no longer has a reason for existence.’

This gives us, as business school leaders, the opportunity to position social responsibility as the foundation for business.

The perspective that a company can no longer exist within a silo, but instead must be part of the whole, builds on the stakeholder theory developed by R Edward Freeman, an American philosopher and Professor at the University of Virginia’s Darden School of Business.

His theory suggests companies should not only consider their own interests but also the interests of all concerned parties (employees, customers, stakeholders, leaders, and so on). This helps to improve the wellbeing of society. Corporate social responsibility is an example that was born from the concrete application of this approach.

To implement these changes, and to ensure companies accept that they must go beyond their mission (to manufacture products or deliver services) and participate in a larger responsibility, Business schools have a primary role to play as they train future managers and leaders and offer continuing education for working professionals who are ready to question their practices.

Beyond the ‘usual goals’ of the business school

The first step in taking on this new role, is to go beyond a business school’s usual goals (for example ‘training the leaders of tomorrow’ or ‘ranking in the top 10, 20 or 30’) in order to ask: ‘why train the leaders of tomorrow?’, ‘what do the leaders of tomorrow need to be able to do?’, and ‘why attempt to be in the top 10, 20 or 30 business schools?’

The second step is a result of this exploration: in addition to working through these questions with students, professionals and employers, business schools have to consider the bigger picture.

Much like what is expected of companies, business schools have to understand how they can contribute to the wellbeing of society. As a result, schools are preparing and implementing a process of change to become ‘schools for business for society’.

It is a positive sign to see that what was once the perspective of a few has become a generally shared vision. While not all business schools are currently working in this way, they are all headed in the same direction and that’s a great result.

It might not seem like much, but there is an important difference between saying ‘we want to train the leaders of tomorrow,’ and ‘we want to train the leaders of tomorrow to do something special’.

It’s vital to understand that this concept of doing ‘first, for society’ is, in fact, quite complicated to implement because it’s a reversal of traditional values. For business schools, it means that if we only carry out our mission to offer training and support research we will miss our fundamental objective. And, if we miss this fundamental objective, we will still be doing something positive – but the current stakes are so much higher.

In addition to working with students and companies, business schools have to offer a vision and solutions for major global challenges (issues surrounding end of life, climate change, energy transition, immigration crises, terrorism, epidemics, corruption, child exploitation, human rights, women’s rights, cybersecurity and artificial intelligence).

The challenge for business schools

The mission is for business schools, and higher education in general, to continue working in their particular fields of expertise, while contributing to solving the world’s larger challenges. They have to go beyond their comfort zone; in other words, move beyond their limited focus on business, in order to understand and explore the complexities of the world.

It’s a change that will enable them to provide support in overcoming the major hurdles faced by society.

When business schools take the step to work on major societal problems, they open the door to risks and are forced to take sides. By this, I mean that business schools do not currently think (and this is a simple fact, not provocation). Their researchers and professors think, but the schools themselves do not. They ‘describe’ and often they do so after the fact. This was illustrated by the 2008 financial crisis – no business school anywhere in the world predicted or anticipated this crisis. In other words: schools do not think, they do not take sides, they do not act.

For example, what does Harvard Business School think about problems impacting on society? Does Harvard voice an opinion, not on immigration, but on what we should do in concrete terms about immigration and immigrants? Going further, if a school’s opinion supports immigrants, does the school work actively to welcome them?

Another example that might offer better perspective is the case of US President Donald Trump. The researchers and professors at Harvard voiced many negative opinions before and after the election of Trump. But in concrete terms, what has Harvard done about it? Nothing.

If the school had an editorial policy, if it truly wanted to change the world, then Harvard wouldn’t simply denounce policy or take sides. The school would act in concrete terms. How? For example, by setting up locations in the US where people voted overwhelmingly for Trump.

That would be going beyond its comfort zone in Cambridge, Massachussets, and entering the playground where things are taking place. To understand societal changes, events and facts, it’s important for business schools to be ‘external’ and to maintain a certain impartiality. But if you want to change things – and to have an impact – you have to be where the action is. While business schools have been limited to describing and explaining, they now also have to (and I do mean ‘also’, not ‘instead’), state their aims, choose sides, communicate and convince.

They have to act, which is at the heart of being engaged and inciting change within the world. In this way, schools can help federate the business world and public institutions in order to work together on important human values and the goal of companies: to perform and create profit for all concerned parties, thereby improving our shared social fabric and contributing to the common good.

Loïck Roche is Director and Dean at Grenoble École de Management (Grenoble Business School). Coming from a corporate background, he worked for 10 years in France and internationally as a consultant in the field of human resources.

Download the latest edition of the Business Impact magazine