Getting In October 10, 2007, 5:55PM EST

Stanford Tops Sustainability Rankings

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Research Not Keeping Up

The growing interest on campus in sustainability is reflected in the number of electives that look at the social and environmental challenges associated with conducting business. Schools now offer on average six electives dedicated to social and environmental issues, an increase of 20% since the last survey, the study found. Despite this, the number of core finance courses that focus on social and environmental topics remains low. For example, in accounting classes, only 5% of the schools said professors discuss how mainstream business can address social and environmental issues, compared to 2% in 2005. In core finance classes just 1% of classes tackle these topics.

The study's authors say that research on social and environmental issues also isn't keeping pace with the general growth of interest at business schools. Only 5% of business schools surveyed published research related to social and environmental issues, just a 1% jump from the previous survey. A number of theories exist as to why research in this area lags. It may be a lack of acceptance by peer academic journals, or the research that has been done may not yet be ready for publication, Leimsider says. "I don't know if we've figured that out yet, it's not as bright a spot on the survey."

Still, some schools are bucking that trend, including Stanford, which publishes the Stanford Social Innovation Review, a quarterly publication that looks at business through an innovation lens. The school's leading researchers are focusing their research on these issues, publishing papers on sustainable supply chains or how businesses can look at environmental issues from a strategy perspective.

Efforts Are Paying Off

Stanford created the Center for Social Innovation back in 2000. The center is now a hub for students and faculty on campus, driving the dialogue on how to equip students to deal with today's social and environmental issues in business, says Kriss Deiglmeier, executive director of the center.

Other schools have established similar initiatives. Cornell, the seventh-ranked school in the survey, created the Center for Sustainable Global Enterprise (BusinessWeek.com, 8/1/07) in 2003. The University of Michigan, the second-ranked school, houses the William Davidson Institute, an independent research institute founded in 1992 and specializing in emerging market economies.

Stanford's efforts in this area appear to be paying off. Recent graduates have started companies such as d.light design, which develops and commercializes sustainable lighting and power solutions for people in rural areas without access to electricity. Last summer, three students took internships with the sustainability division of Wal-Mart Stores (WMT) and more graduates are expected to pursue similar opportunities at other mainstream businesses, Deiglmeier says.

"The student demand is moving, academics and business are now starting to move," she says. "That is where you are getting the momentum to keep this going."

Damast is a reporter for Businessweek.com.