Friday, February 18, 2005

School for scandal

This Economist article complains that the focus on Economic theory in B-Schools might be a cause for unethical behavior. But B-Schools cannot do much !!

Mr Ghoshal and his supporters are right that top business schools strive for academic respectability, and that this has led them to rely heavily on economic theory. But they are wrong to criticise this. As long as schools are teaching academic degrees (and, after all, the letters MBA stand for Master of Business Administration), they have to teach the most compelling business theories around. It may be a pity that these are mostly to be found in economics. But that is the fault of other disciplines for not coming up with ideas to rival, for example, agency theory or the maximisation of shareholder value.

In a similar way, a good MBA degree can help provide a student with analytical skills and theoretical knowledge useful to a business career. But becoming a successful leader of men and women in a turbulent business world requires maturity and wisdom. Happily, there is no degree programme for those.

13 comments:

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