Social and Environmental Responsibility Starts in the Classroom

The Moral and Ethical Standards of Business and the New Role of Education

To say that the world of business today is changing is, at best, an understatement; at worst, misleading. The very nature of business throughout history, much like all disciplines, has always been a constant shift from one set of norms and standards, to another. To put it in a rather simplistic and un-elegant way, the purpose of business is, as it has always been, the maximisation of profits coupled with the minimisation of expenditure. Of course, the application of this ethos has always been determined by the economic, political and social conditions evident within the market at any particular time.

In light of recent events such as the 2008 Subprime Mortgage Crisis and on-going environmental concerns, especially those in relation to Global Warming, the role of business has increasingly been subjected to the ethical and moral standards of the wider community.

The goal of business today, as increasingly seen by many, is to not only meet the goals of shareholders, but to meets these goals whilst adhering to the relevant social conditions and ethical standards of the location and period of which one operates. For us, this means a strong commitment to creating benefits for all stake holders, with the expectations and goals of the community considered to be as important as the expectations and goals of shareholders.

As educators, business schools must now recognise and play an integral role in instilling the notion that economic and financial success at the expense of the community and the environment is unethical and immoral, and an unacceptable and untenable approach to modern business.

At MIP Politecnico di Milano, we recognise the growing need for management graduates to adhere to such ethical standards. Like many companies, groups and individuals with business, our students are competitive and determined to succeed. For too long however, the price for such determination to succeed at all costs has been ignored, for which MIP and other business schools, as institutions responsible for teaching and promoting responsible values, must help correct.

The role of teaching corporate social responsibility has always been part of our educational platform, however we believe that still more can be done. To this end, we have put in place a number of initiatives in recent years that we hope will help to address the need for socially conscious graduates moving from the academic to business sectors.

Our MBA Oath is one example of how seriously our students take this issue. Each of the last few MBA classes have pledged to work as ‘professionals’, adhering to a set of principles and guidelines similar to that of a doctor or a lawyer. The oath states, in part: ‘As a business leader….I promise that….I will invest in developing myself and others, helping the management profession to continue to advance and create sustainable and inclusive prosperity.’ Indeed these qualities are also shared by the school, which holds the same values of integrity, professionalism, respect for diversity and a passion for innovation, and these values drive us constantly in our mission of educating future responsible business leaders.

Furthermore, we believe that positive and worthwhile progress in this regard requires significant and meaningful action. For our MBA students, the opportunities available to them ensure that their education encourages and instructs them with the knowledge and competencies to enact positive social and environmental change and responsibility, whilst striving for personal success and satisfaction in business. We in fact believe that the business world of tomorrow will be inclined to reward innovative and creative minds that seek to maximise and combine the accomplishments of business and community, with future achievements in one considered to be mutually beneficial for the other.

MIP and the Italian Chapter of the CleanTech Challenge, 2013

Two of the clearest example MIP’s commitment to these principles can be seen in our participation in the ‘CleanTech Challenge’ and the ‘Schmidt-MacArthur Fellowship’. Both these initiatives are aimed at promoting new ideas and practices that benefit the environment and sustainable energy, as well as encouraging social responsibility and accountability.

The ‘CleanTech Challenge’ is an annual competition intended for teams to develop clean technology business ideas. The competition awards designs that are innovative, practical and that have great potential for significant positive environmental impact, with finalist teams participating in London for the chance to receive £10,000. For the past three years MIP has had a team compete in the final of the competition, with many more students involved in the pursuit of clean and renewable energy through MIP.

The ‘Schmidt-MacArthur Fellowship’ is a joint university programme offered by The Ellen MacArthur Foundation and the Schmidt Family Foundation. These two foundations are leading advocates of new sustainable management and resource allocation practices and theories, especially in regards to teachings on the ‘Circular Economy’; a theory of resource management aimed at creating regenerative material flows, thus alleviating resource constraints on industry.

Furthermore, our course concentration on energy and sustainability management is a three-month intensive programme on current and renewable energy sources. This concentrations routinely attracts numerous candidates from energy and resource related backgrounds, looking to further their education and skills in this discipline.

We believe that business schools are to play an increasingly important role in the development of the social and ethical responsibilities as expressed by our graduates, the future managers and leaders of business. The role we play in guiding and educating students has an undeniable link between ethical and socially responsible business practices as exhibited by modern business. Increasingly, business schools must recognise the need for, and lead the way on developing and encouraging socially acceptable and environmentally sustainable practices. To do this, involves innovative thinking, new ideas and programs and teaching staff that reflect the drastic shift in practices and thinking evident, and still emerging, within the wider global community.