Mission: Social Responsibility

A U.N. initiative to promote business ethics is readying a set of principles. It could change the way B-schools operate

Dr. Angel Cabrera
Senior Adviser for Academic Affairs
UN Global Compact Office
President, Thunderbird, The Garvin School of Global Management

Dr. Manuel Escudero
Head, Global Compact Networks & Academic Initiatives
UN Global Compact Office

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In July, 2000, the U.N. launched the U.N. Global Compact, an initiative to encourage responsible business practices worldwide. The program developed principles for responsible investment and now has more than 3,800 participants, including more than 2,900 businesses in 100 countries.

Recently, the Global Compact decided to expand its efforts to the academic community and is in the process of developing a set of Principles for Responsible Business Education. In January, Angel Cabrera, president of Arizona-based Thunderbird School of Global Management was named senior adviser to the Global Compact and is heading the task force developing the principles, which are to be presented at a meeting in Geneva in July.

Members developing the principles envision that business schools will reassert their commitment to teaching business ethics and address issues of human rights, labor, environment, and corruption.

Last month, Cabrera and Manuel Escudero, the head of global compact networks and academic initiatives met at U.N. headquarters in New York to fine-tune the education initiatives. There, they discussed the project with BusinessWeek.com reporter Janie Ho. Edited excerpts of the conversation follow:

More than 150 academic organizations are already part of the Global Compact, in places ranging from the U.S. to Nigeria. What role will they play with the new principles?

Cabrera: Lots of business schools want to be part of this movement with the Global Compact, but when you read those Principles for Responsible Investment, it's meant for policing companies. Business schools would have to be pretty creative to violate human rights issues, child labor, or even environmental issues. Maybe some money issues.

It's to have a clear commitment to ensure that their graduates joining the ranks of companies around the world understand that.

So B-schools would have to change their curriculum?

Escudero: Yes, exactly.

Cabrera: We want to make it clear: Your very mission as an educational institution must ensure that business leaders understand their social responsibilities. You must be committed to integrate that kind of thinking into your subjects—MBA, undergrad, research. You need to be listening to the companies that you serve. Then you need to make this progress public. Just like the companies do. If you're going to sign up with these principles, you need to publicize what you do.

How many academic partners do you hope will sign on these new principles, if adopted?

Escudero: We have participants from all over the world. It's not limited to those 150-plus schools that are already involved with the Principles for Responsible Investment, aimed at companies. We're aiming at a wider participation in the Principles for Responsible Management Education. We're trying to create change throughout business schools all through the world.

Who else besides business schools are to follow these principles?

Cabrera: First we need to figure out who influences academic institutions, how we can ensure that academic institutions do this. The U.N. can influence them by publishing this report.

So you want accrediting bodies such as the Association to Advance Collegiate Schools of Business (AACSB) to try to help instill these principles or make this part of the accrediting requirements?

Cabrera: Ideally, we want to be co-conveners of this project. They have not agreed yet to make this part of the accreditation. It may take a few years to agree to incorporate it into their accrediting process.

Would cost be a factor such that smaller schools may not have the resources to adhere to these principles?

Cabrera: Well, it could be. Some of those things are more a question of attitudes.

Escudero: I'd like to add that the U.N. does not work on our own.