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In a live interview aired this morning on CNBC (Blame the B-Schools? – CNBC.com) Steven Kaplan of the Chicago Booth School of Business argued that blaming business schools for the financial meltdown is “silly”. The market system has done a lot of good and that proves that business schools haven’t done anything wrong.
I on the contrary argue that not assigning any blame to business schools is intellectually arrogant and socially irresponsible. After a plane crash, investigations are conducted to explain the causes and avoid future failures. Here’s some news: the economy just crashed, the global financial system just crashed… and we happen to be in charge of training the “pilots”… shall we just look elsewhere for an explanation?
For too many years we have taught managers to make as much money as they can (for shareholders and themselves) as long as what they do is legal. It’s time we start teaching people to do what is right rather than what is legal.
We will never have a perfect regulatory system, and therefore we need to ensure that the people that will be calling the shots on our behalf are taught to protect the public interest, to create real value and to serve the greater good.
June 16th, 2009 at 12:56 pm
From Scott W. Lowe:
Dear Dr. Cabrera,
I just watched your discussion with Steven Kaplan. Dr. Kaplan is wrong. You are correct!
I am a practitioner who is currently a lecturer at a state university in Virginia. I have been fortunate to teach finance in an entrepreneurial program during the past 4 years. The traditional business educational model falls short to transferring the practical knowledge and professional attributes needed in the emerging economic environment.
As a retired airline captain, and instructor pilot, I know for a fact that pilot training falls short of providing the practical training and experience necessary to make appropriate decisions. As a result, airplanes crash due to pilot error. Inadequate business education has similar effect. Poor decision-making and self-interest causes businesses to fail. Employees, investors, and communities lose; life’s are destroyed.
I encourage you to speak out and work to make the educational process more relevant and effective.
Best regards,
Scott
–
Scott W. Lowe
MBA, CPA, CMA
June 17th, 2009 at 6:46 am
Dear Dr. Cabrera,
There is a lot of work to do, as you know I work in technology in both Europe and South America and I have to say that the moral relevance of leaders actions in business and Government is high.
Todays leaders are really not aware of the importance of limiting personal gree, therefor the people recieve constant messages to unlimit theirs.
Its not a new problem, most religions base their message on loving others as much as you love yourself and these have been going on for a long time.
But not until now the combined greed and lack of values of a relatively small number of individuals could produce a Global problem.
I think that is the difference of the problems we address from now on.
Pleasure to contact you again.
José Ignacio
June 26th, 2009 at 10:47 pm
When business schools started adding ethics courses and centers for the study of ethics in business after Enron and the dotcom bubble bursting, they neglected to examine who they permitted to take business school courses of any kind. I went to a top-20 undergraduate business school. Most of my peers couldn’t care less about ethics, let alone ethics classes. Business schools aren’t solely to blame, but they could do a much better job selecting candidates who’ll take ethics seriously.
January 25th, 2010 at 8:04 am
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