56 Ml CORPORATE SOCIAL RESPONSIBILITY world, several trends have converged to prompt attention within civil society to the idea of collaboration with business. Development-oriented civil society organizations (CSOs) are facing increasing uncertainty and reductions in financial resource flows from international donors and national governments. Simultaneously, demands for services are growing as large numbers of people suffer from decreased government services and economic dislocations that are associated with global financial shifts. Since governments are no longer viewed as having the legitimacy or capacity to provide basic services and social safery nets, private actors in civil society and the market are called on to address social demands. ‘The idea that increased levels of cooperation between civil society organizations and businesses will bring significant benefits for sustainable development in the global south needs further exploration. If collaboration with business is warranted as a major new strategy for civil society-based development organizations, it should produce significant impacts and be widely replicable across the global south. This paper assesses the sociery-business partnerships in India, It identifies the benefits of civil society-business collaboration and examines factors associated with it, The analysis suggests a more sobering view of the benefits of civil society-business collaboration than many expect. Corporate citizenship is not likely to produce significant development results unless civil society organizations are empowered partners in their collaborative ventures, THE CHANGING GLOBAL CONTEXT ‘The role of business in society is evolving in conjunction with global social and economic forces, constantly changing many aspects of how and where businesses operate. Business must respond to these changes while continuing to satisfy customers’ needs and to provide a reasonable rate of return to sharcholders. Globalization - the combined processes of faster communications, lower trade barriers, increased capital flows and greater individual mobility - is integrating economies and societies around the world. This has coincided with a global shift toward democratic market-based economies to the point where more than ever before, people live under governments of their own choosing. While quality of life has improved for many, sustained poverty reduction will require continued global economic integration, which leads to faster and more widespread economic growth. THE ESSENTIAL ROLE OF NATIONAL GOVERNANCE The current debate surrounding Indian scenario, includes concerns that the authority of governments is being undermined. However, commercial activityCSR DEBATE IN INDIA — FROM PHILANTHROPY TO PUBLIC... ll 57 and private enterprise depend on national governments to set a level playing so that competitive markers can flourish for the benefit of both consumer d society. This requires both the establishment and implementation of appropriate legal frameworks in areas relating to corporate governance, financial closure, bribery and corruption, environmental protection and labour rights. countries with ineffective domestic governance, companies and organizations contributed by promoting good business practices. However, such efforts ild not divert attention from the strong need for national governments to blish effective, appropriate legal frameworks to foster economic growth, ronmental protection and social progress. MAINTAINING GOOD GOVERNANCE rporate responsibility is a dynamic and multi-dimensional concept, with ss policies and practices evolving to adapt to variable economic, social d environmental circumstances. Implementation of corporate responsibility is and initiatives should be carried out. Such efforts should be intary, flexible, adaptable and participatory, as this approach will yield best overall results for businesses and their stakeholders, ss conduct must comply with applicable laws and regulations, including on competition, corporate governance, financial disclosure, employee shts and environmental protection. In many cases, however, compatiies and izations choose to exceed legal requirements to voluntarily advance their n corporate responsibility programs and practices, particularly where local is absent or insufficient. The benefits of setting challenging goals and ives, testing a variety of approaches or techniques, and engaging broad ipation are only possible through voluntary commitments. By contrast, nposing mandatory approaches to advancing company principles would likely mit innovation in business practices and reduce the overall impact of corporate ponsibility efforts. rf | porate responsibility programs are most effective when tailored co the que circumstances of a given company and the different countries in which erates, A one-size-fits-all approach limits creativity and innovation in the opment of effective corporate responsibility programs. To be relevant to pany's specific circumstances, business principles should be developed. ‘implemented by the companies themselves to reflect their individual stances and the priorities of their stakeholders. This approach does probibic collective action, as companies in similar industries have developed iatives to advance issues of common interest. Flexible programs also have benefit of changing with fluctuations of markers and the expectations of holders.58 mM CORPORATE SOCIAL RESPONSIBILITY Corporate responsibility initiatives should reflect direct company participation in the decision-making process. This will ensure that they reflect the experiences and business realities of a wide range of industry. Multilateral initiatives on, corporate responsibility should allow for company participation in the development, decision-making and governance processes, and should be open to participation or membership of all companies. The commitment by business to operate in a responsible and sustainable manner will provide greater overall benefit if a cooperative, flexible and open working environment between companies and their stakeholders is created and maintained. This approach will encourage business to continue advancing corporate responsibility and engaging the broader community in its efforts to contribute to economic growth, environmental protection and social progress. Many meanings have been attributed to the term "corporate responsibility”, but it generally refers to the role of business in society. Corporate citizenship, social responsibility, sustainability and triple-bottom-line management are terms that have also been used in this context and convey similar meanings, Corporate responsibility involves a commitment by a company to manage its various roles in society, as producer, employer, customer, and citizen, in a responsible manner. The commitment is usually in the form ofa set of voluntary principles and policies - over and above applicable local legal requirements - thar seek to ensure that a company has a positive impact on the societies in which it operates. The production and marketing of goods and services, business ethics, environmental practices, treatment of employees, approach to human rights, and community engagement are all examples of such impacts. While it enjoys growing public interest, corporate responsibility is not a new concept. Key aspects of what is now referred to as corporate responsibility have been identified and managed by the business community and other organizations for some time. Policies and business practices have been developed in the areas of corporate philanthropy, procurement guidelines, codes of conduct, ethics and compliance, community engagement, employee satisfaction and environmental protection. Indeed, developing and implementing policies and strategies in these areas have become part of what is generally considered sound management. Corporate responsibility typically involves the company integrating these activities into a single concept that supports the company's business objectives, promotes dialogue with its key stakeholders, and can result in real benefits in the communities where companies operate. Many companies that have integrated social and environmental strategies into their business plans have found that they can improve relations with legal and political entities, effectively address the concerns of external stakeholders,CSR DEBATE IN INDIA — FROM PHILANTHROPY TO PUBLIC... Ml S9 discover areas of strategic advantage and improve their management systems. ‘Integrating such aspects into performance objectives has also helped businesses us on a central issue for every company: improving the lives of the people olved in its business operations. Improved performance in these areas is ‘frequently cited as generating intangible assets, such as employee commitment and customer brand loyalty, that may lead to improved financial performance. Companies that actively manage these issues may also be better able to improve ions with other key stakeholders such as regulatory agencies, the financial unity, local communities and the general public. ‘How a company organizes itself to meet its corporate responsibility objectives fluenced by its history, experience, cultur-, philosophy, business sector d the laws and regulations of the countries in which it operates. These actors have led companies to adopt a wide range of approaches designed to t meet their needs or those of various stakeholders. panies have also benefited from doing business with suppliers and other ness partners that embrace high standards of ethical business behaviour ices. Business partners are expected to be in compliance with all relevant aws and regulations. Some companies are going further and asking suppliers 0 commit to terms regarding their legal, ethical, environmental and ployment standards. Such voluntary initiatives by companies have been useful in supporting a business culture that minimizes corruption and thical behaviour, and encourages full compliance with all relevant laws regulations. While there are practical limits to the ability of business to fence all aspects of the supply chain, companies can partner with others develop and advance solutions both up and down the supply chain. nally, businesses have important relationships with the communities in lich they operate, providing employment opportunities, wages, benefits a good work environment. Cooperation between companies and other ‘nal stakeholder groups-such as customers, investors, governments and ighbors-has also been a constructive way to implement corporate nnsibility programs. Companies have established external programs and ies to work closely with key stakeholders to strengthen human resource velopment, sustainable environmental practices and social services. However, ies should determine the best method and partners for such stakeholder ¢ to ensure shared values and common objectives. companies have adopted external corporate responsibility initiatives to lement internal policies. The decision to engage in an external initiative 's0, which one, will depend on the objectives of the individual company the relative added value that each code or initiative provides the company.60 ™@ CORPORATE SOCIAL RESPONSIBILITY External corporate responsibility initiatives vary according to the issues they cover. Key areas might include fair business practices, legal compliance, fair employment and employee rights, environmental stewardship and human tights. While many early initiatives were designed to address a single particular issue such as labour standards or environmental protection, more recent corporate responsibility initiatives have sought to address a range of social and environmental issues in a single framework. External corporate responsibility initiatives also vary according to the sponsoring organization or partnership. Most existing policies have been developed by companies for use in internal management systems. Business associations and groups of companies have also developed initiatives to advance a common stances, companies in similar industries have found interest. In some competitive advantage in following a single initiative. A growing number of initiatives are being developed by other interest groups, including trade unions, environmental groups and human rights organizations. And finally, governments and multilateral institutions have developed corporate responsibility initiatives both individually and as part of intergovernmental negotiations. A key audience for corporate responsibility islitiatives remains the company itself, namely its business units, managers, employees and shareholders. Companies may adopt an initiative to signal their sound business practices to current or potential host governments, thereby maintaining or enhancing the company's license to operate. Additionally, when initiatives are used to communicate a company's involvement with the communities in which it operates, local or national frameworks may be best suited. Finally, initiatives are targeted to a company's customers or suppliers, enhancing brand image and engaging the supply chain, respectively. The way companies communicate their commitment to corporate responsibility also varies from company to company. While some companies make their corporate responsibility policies very public and/or subscribe to outside corporate responsibility initiatives, others develop their corporate responsibility policies and programs internally and disseminate the policies throughout the company without making them widely available outside the company. Different public reporting approaches are also used, including issuing corporate responsibility-specific reports, incorporating corporate responsibility into annual reports, posting information on company websites, and/or publicising corporate responsibility practices through business associations. Some companies also develop corporate responsibility reports as a means to promote greater transparency and interaction with key stakeholders. Businesses are accustomed to being criticized for neglecting their responsibilities to society. Complaints that private enterprise puts profit before people haveCSR DEBATE IN INDIA — FROM PHILANTHROPY TO PUBLIC... Mf 61 "long provided reliable applause lines for politicians and assorted activists, and “material for the briefs of crusading public-interest attorneys. But in the past few years, the concept of corporate social responsibility-increasingly part of the curriculum in America's schools of business and management-has cstablished itself as a political and social force to be reckoned with. This can seen in recent proposals in Congress and elsewhere to offer tax breaks or regulate differently firms that shoulder their "social responsibilities". ITIATIVES TOWARDS EFFECTIVE CSR CSR can affect a variety of stakeholders, including customers, employees and ‘their families, investors, local communities, environmental groups, government, suppliers, and competitors. Accordingly, CSR involves a wide of practices in the area of human rights, employee relations, diversity, sumer protection, environmental protection, fiscal responsibility and ountability, marketplace practices, and philanthropy. ndian MNCs like the Tata group, ITC, Ranbaxy, Infosys and DuPont India, endeavoured to create a better social order, What is significant with these companies is that they initiated the process of CSR from their very doorstep, ‘oviding a better and healthy work atmosphere to employees. J Part of the wealth created should be made available for the benefit of the nation. In the creation of wealth, care must be taken to not only protect the environment but also enhance it so that this world, which we have : ; borrowed from our children, is left in better shape for them. Leadership in business is living by these ideals and leading by example. In today's world, the only constant is change. Leaders must anticipate change, drive it, make it acceptable to all stakeholders, and turn threats “into opportunities through their vision and their actions. ¢ argue that there must be legal provisions for CSR, just like the recently duced concept of corporate governance in structuring the board of a , It is seen that most companies name independent directors in their f directors as a statutory requirement. The very notion and goal of ing shareholders’ interests is defeated as in many companies endent directors are "friends" of promoters and act as rubber stamps. from within the company, let it evolve as a company's philosophy, yg attached to the company's brand... and let society be the judge of rity of purpose and honesty of action.62 Ml CORPORATE SOCIAL RESPONSIBILITY A survey by Capital Care of the London business community points out "Over three-quarters of businesses here agree that their organisations should do more than the law requires on environmental concerns and over half think that they should do so on social objectives”. OF course, all companies must conform to the basic legal requirements pertaining to CSR, such as environmental norms, labour welfare requirements, and advertising laws. But they must strive beyond the legal requirements. Here, I would like to cite the example of DuPont India’s safety standards where all employees have a prescribed code of conduct - something beyond the legal requirement. Having been associated with the textile and fashion industry, I cannot ignore my responsibility to create a breed of professionals who think beyond just profit. While the textile industry must understand its responsibility in deploying environment-friendly technology, it must also ensure a better life for its labour force. So far as fashion and design industry is concerned, it must not ape the West. It must try to innovate products and designs to suit the socio-cultural fabric of the nation. The innovation must have the strength to influence the ideas of the Western world rather the other way round. There must be a set of ethical and moral values to guide all business processes at the workplace as well as at the marketplace. In the words of Kofi Annan, UN Secretary-General: "We have to choose between a global market driven only by calculations of short-term profit, and one which has a human face... Between a selfish free-for-all in which we ignore the fate of the losers, and a future in which the strong and successful accept their responsibilities, showing global vision and leadership.” CONCLUSIONS AND IMPLICATIONS FOR THE FIELD The pioneers of Indian Industry, during the colonial era, were leaders not only in the economic but also in the social field and many of them were men of great vision fired by ideas beyond the mere making of money. Thus, it was only natural that India's business leaders made yeomen contribution to the freedom struggle. Over the years, the vision has spread and a growing number of entrepreneurs have contributed to India's social development. The social dimension of sustainability captures the impact of an organisation's activity on society, including on employees, customers, community, supply chain, and business partners, Social performance is a key ingredient in assuring an organization's license to operate, and supports the organization's ability to deliver high-quality environmental and economic performance. Many stakeholders believe that reporting and improving social performance enhances reputation, increases stakeholder trust, cteates opportunities and lowers costs.CSR DEBATE IN INDIA — FROM PHILANTHROPY TO PUBLIC... MF 63 At present, reporting on social performance occurs infrequently and inconsistently across organisations. While there is some agreement on measures for certain dimensions of social performance, they are not as“well developed. Centre for Social Responsibility believes that the following principles play an active role in spreading the CSR movement. a. Motivating companies to contribute to society by organising seminars and conferences on subjects of social concern and role of the corporate sector. b. Integrating and synergising the work done by various organizations, NGOs, Corporate Sector, Govt. and International Agencies. € Participating in the developmental programmes by conceiving, implementing or monitoring various projects and programmes. d. Encouraging individuals and institutions to participate in social development by bestowing awards and recognizing their contribution. e. Empowering regional chapters of CSR to take up similar activities at the regional level. f A coherent CSR strategy, based on integrity, sound values and a long- term approach, offers clear business benefits to companies and a positive contribution to the well-being of society. g- ASR strategy provides the opportunity to demonstrate the human face of business. h, Such a strategy requires engagement in open dialogue and constructive partnerships with government at various levels, [GOs (intergovernmental organizations), NGOs (non - governmental organizations), other elements of civil society and, in particular, local communities. i, In implementing their CSR strategies, companies should recognize and respect local and cultural differences, whilst maintaining high and consistent global standards and policies. j. Finally, being responsive to local differences means taking specific initiatives. R many companies, managing corporate social responsibility well is no longer een as an extra cost or burden on hard-pressed management. Rather, CSR is creasingly viewed, not only as making good business sense but also ntributing to the long-term prosperity of companies and ultimately its jival. Being a good neighbour and showing that you care on the one hand d being a successful business on the other, are flip sides of the same coin.64 @ CORPORATE SOCIAL RESPONSIBILITY Increasingly, companies manage social issues in the same way as they manage any other strategic business issues and there is a growing array of tools available to assist and guide chem. It is important to recognize that CSR means more than promulgating the company's own values and principles. It also depends on understanding the values and principles of those who have a stake in, or are affected by, its operation. The past twenty years have seen a radical change in the relationship beoween business and society. Key drivers of this change have been the globalization of trade, the increased size and influence of companies, the repositioning of government and the rise in strategic importance of stakeholder relationships, knowledge and brand reputation. The relationship between companies and civil society organisations has moved on from paternalistic philanthropy to a re-examination of the roles, rights and responsibilities of business in society, Corporate Social Responsibility (CSR), defined in terms of the responsiveness of businesses to stakeholders’ legal, ethical, social and environmental expectations, is one outcome of these developments. ‘Accusations by governments and civil society alike, of environmental pollution, human rights abuses, and exploitation of labour in supply chains, has pressured companies into becoming more environmentally and socially responsible However, companies have quickly recognised the strategic value of being more responsible and are beginning to align products and business relationships, in particular through their supply chains, accordingly. CSR is not a replacement for the rightful role of democratic governments to set regulatory frameworks for the benefit of society. The polarisation of the debate as to whether voluntary or regulatory approaches are the most effective way to improve social and environmental performance is misplaced. It is more useful to understand when and how different approaches can create business and societal benefits. Often the two go hand in hand, as is the case with labour standards where both voluntary and regulatory approaches (codes of conduct, independent monitoring, and legislation) are in place. The key is to understand how they work together. CSR has focused around ‘hot spots': key issues, sectors and regions that drive forward developments in CSR at different times, CSR developments have been concentrated in industries that involve high health or environmental risks, activities covered by high levels of regulation, and industries that provide essential services or lifestyle products. The issue focus has moved from bribery and corruption to environmental stewardship to social issues such as labour standards and human rights. Current emerging issues include product responsibility, responsible downsizing and corporate influence on public policy. Civil society and consumer campaigns and media attention have focusedCSR DEBATE IN INDIA — FROM PHILANTHROPY TO PUBLIC... M65 tention on major national and international brand names, however Be ptitidardergralinceeastnglpbeing developed wpeelee oka framework for CSR and overall sustainability management. CSR must be underpinned by a strong business case that links social and environmental responsibility with financial success. Business benefits include, operational cost savings through environmental efficiency measures; enhanced reputation through positive responses to stakeholder concerns; increased ability to recruit and retain staff; sharper anticipation and management of risk; and ‘improved capacity to learn and innovate, However these business benefits will not be significant for all companies. For cach company the business case needs to be carefully developed according to the product, industry, and/or service in question. CSR needs to be integrated in core business strategies if it is to survive global recession or insecurity. CSR has gained prominence against a backdrop of cycles means that this pattern of growth will at some point slow down, and possibly go into recession. If any downturn is compounded by global insecurity a result of increased political conflict, the further development of CSR may challenged. Where CSR is ae within the core ; business ased on its ability to be at diene dis enietish busines en elopment, thereby becoming part of ‘business as usual’. @ Anita Roddick, KLM Herald magazine, @ N. Balasubramanian (ED): Corporate Boards ~ August, 1999 and Governance, Sterling Publishers, New ROME Stivaitova. cand < Shanker = ou ee ateshwaran, The Business of Social @ R. Aga: Embracing CSR —The saner hsb, Books for Change, Bangalore, alternative, Forum of free enterprise Rossabeth Moss Kanter: notes in ‘From Spare d Business Review Articles on CSR Change to Real Change: The Social Sector as a Beta Site for Business Innovation’ ) J. Wolfensohn, World Bank, article in | ert Jane 21, 1999 © Vasudha Joshi, Corporate governance The Indian Scenario.Management Education and Value Based Curriculum AJIT PRASAD* There is probably no count on the number of business schools in the world.* In India alone, we have over 1100 business schools recognized by the regulatory authority, AICTE. This excludes the university departments that also offer management education. These schools have a turnover which results in a gross addition to our managerial workforce of over 100,000 managers every year! Considering that most of these will find employment with the (private) corporate sector, which may not follow a uniform set of curricula practices, it is imperative that at a societal level, we consider introducing a set of courses that will integrate the existing “business related courses” with those that include a certain holistic approach to managerial decision making. The business school curricula has developed very well through the years and now has become uniform in terms of developing the special competencies that are required for managing a business. Indeed most of the course contents have also become standardized, as have the course materials. In the first year of a two-year MBA program, participants study 20-odd courses that are termed Professor, International Management Institute, Delhi. A preliminary version of this paper was presented at the NIBS conference in 2003 at Rennes, France. Acknowledgments are to be made to IMI for funding this project and to Shilpi Mahendroo, at IMI ‘for research support Assuming 100 students graduate every year from these schools. This is probably an underestimate, as this figure pertains to schools that are recognized and registered by AICTE [All India Council for Technical Education]. In addition to these there would be unrecognized schools, those not failing under the ambit of AICTE [e.g., the Indian Business School at Hyderabad}, and of course the Universities.MANAGEMENT EDUCATION AND VALUE BASED CURRICULUM & 67 as core courses; in the second year, the students gravitate towards the “specialization” courses ot the “electives”. So much so that what started off as a general management course, focusing on the skill development that is required for the position of holistic requirements— the general manager—has now turned into a specialized degree: thus the emergence of the MBA with specialization in Marketing, or specialization in inance. There is now an increasing tendency to minimize, if not do away ‘with the core papers totally and replace them with the special electives, with the logic that “this is what the market demands”. THE PROBLEM PERSPECTIVE In addition to the holistic approach, it is argued elsewhere that managers ‘need to have a value based approach to learning and education. This is specifically important in developing countries like India, which through the development process and because of the existence of an imperfect market, may lead to a situation which encourages decision designed at short-term profit making, rather than socially acceptable and sustainable competitive behavior. Recent trends of privatization, shifting foci of the government from interventionist to a more regulatory role, implies that there is greater onus on part of the corporate sector to espouse the cause of a set of systems devoted to good governance and, of course, to good corporate citizenship. The managers if the corporate sector need to inculcated these values at the learning stage lf. he focus of education, especially at the post-graduate level, purely in the ormative manner must be aimed at: Providing a set of tools that provide for an integrated approach to managerial decision-making, That this integrated tool must have “social value” relevance, i.e., providing a set of values that are in consonance with a long-term symbiosis berween the social fabric and the business culture, with the overall “blessings” of the state. Ensuring that this “social relevance” does not emanate from textbook courses but from life experiences gained through a holistic approach to education (say, for example, the study of history and philosophy). 5 to say, all three seem to be missing in the curricula of most business Is today. There are, however, some efforts made by the more “enlightened” chools like [IM Calcutta and SP Jain in Mumbai that have made pioneering rts in the area of introducing the value based curriculum—IIM Calcutea68 Ml CORPORATE SOCIAL RESPONSIBILITY in its efforts through the Centre of Human Values and the elective courses that it offers, and the SP Jain Institute through its novel “Village Visit” that is an integral part of the MBA course. These efforts, however, are limited and have not had any demonstrable impact on defining the courses of other B-Schools THE STATUS TODAY The education system as prevalent today is naturally biased in its approach towards the more “commercial” aspects of business. On the average, in most MBA? programs, over a period of two years, a total of 40 courses are covered. Each course involves about 30-36 hours of teaching time, and in a semester system is spread over 12 weeks. In between the two years, during the summer break, participants are encouraged to do a summer internship with a corporate body, working on a specified project. A typical course distribution is placed in Annexure “A”. As can be seen from the annexure, all of the first year is spent in dealing with hard core business subjects, with an inbuilt focus on maximizing profits. The softer side of the course starts only in the second year, where, for example in Strategic Management IT, the subject of Ethics would be dealt with. Alternatively, if a student chooses the “right” electives, he may be doing some more courses related to value based education. If we allow for the fact that there is an imperative for introducing VBC in the business schools, several problems stand out with this existing system. 1. Apart from the different names that the course on Business Policy is taught, there is very little of an integrative approach to the education that is provided in the business school. 2. There is also a total lack of integration so far as the Value Based Courses [VBC] are concerned. These courses, more often than not, turn out to be faculty specific. The course outline and the offering of these courses also turn out to be situational. 2 will be using she acronyms MBA (Masters in Business Administration] and PGDM [Post Graduate Diploma in Management] interchangeably. Asis well known, the MBA degree is awarded only by a University. Most business schools are equipped to award only a PGDM. In India, the Association of Indian Universities, grants equivalence with an MBA after a rigorous examination of both the academic and administrative systems prevalent in the school. This is also the practice in many other countriesMANAGEMENT EDUCATION AND VALUE BASED CURRICULUM 69 5.» The readings, syllabus etc., do not have too much correspondence with _ the contents of the other courses and do not supplement the synergistic Igarning, The net result is that there is a total absence of integrated social development of the student. ‘It may be interesting to point out the dichotomy that exists between the Indian Scenario and the International one. While the Indian B-school ‘curriculum focus mostly on problems that have been identified in western “case studies”, the west has left us significantly behind, and, having realized ¢ importance of a truly global perspective, have revised the curriculum not to include global and Asian’ case studies, but have also encouraged the lopment of courses on business ethics etc as core courses to be taken by ALYSIS OF PRESENT SCENARIO ¢ present scenario is not very encouraging. In fact, things are getting iplicated as there are increasing divergences between the requirements from essional manager across countries. Thus there would, to say the least be stantial difference between the requirements of a manager in a developing intry and a developed country. ith increasing globalization, this emerging dichotomy has to be curtailed, th particular reference to the points of differentiation between the two sets order to achieve convergence is reached. Why is convergence important? mply because without convergence, it will not be possible to develop a perspective. Thus, the bottom line is that the developed country MBA a5 to look at the problem from a developing country's perspective and a loping country MBA has to look at the problem from the developed itry’s perceptive. _ & REQUIREMENTS business seems to be operating in a “borderless world”, the need to about several issues has increased. Although business schools prepare a to get educated in the diverse fields of management, it is getting away eccie purpose of “learning”. Curriaulums have adopted various new as modules of a subject or a whole new subject, but the question is: a business school really need co adopt these concepts as a subject? Why be interesting to note shat the latest edition of Jobnson & Scholes, (PHI, 7th Edition) a dard text-book in the area of Strategic Management has included a large number of cases relating India and other Asian & South Asian Companie70 ™ CORPORATE SOCIAL RESPONSIBILITY not enable a student to think of anticipated problems and find the solution from various other fields? Let us look at some of the points of difference that are evident: THE MBA PROGRAM: SOME POINTS OF DIFFERENCE studies relating to the base country; some consulting projects done by faculty are used as case study Developing Countries Developed Countries STUDENTS Age group 21-23 years > 25 years Minimum Undergraduates: few with work Work experience for minimum of 2 years Qualifications experience Educational Generally commerce/engincers; some | Any stream Background from arts stream too 1 oat CURRICULUM Subjects Inspired from the top western schools | Self developed and evolving: generally new with a slight touch of the base concepts which originate in the business county's business environment world, or a new research topic inspired by an emerging discontinuity Cases ‘Adopted from other schools; few case | Self developed by faculty or students; through consulting projects done by students or faculty Incorporate new subjects New/upcoming business related issues are taught as a module of a core/elective subject Taught as a core/elective subject practical; business Ethics and CSR is, possibly a module; both formulation and implementation; analyze an ill- structured competitive situation and give solutions SUBJECTS Economics Application oriented; basic Application orlented: economic reasoning: fundamentals of micro and functioning of markets and price macrueconomics; concentration‘on —_|_mechanism: drivers of a firm — revenue and development economics cost Finance In-depth study of all methods used: | In-depth study of all methods used: understand, analyze and interpret ‘understand, analyze and interpret financial financial data; No stress on ethical | data; but recently some schools have standards in financial reporting incorporated ethical accounting techniques in the curriculum Marketing, Learning westem marketing concepts | Strategic marketing oriented program; role and relating them to the country’s play ~ extremely tough and highly realistic situation: marketing simulation Organizational | Basic concepts; sometimes role play | Baste concepts with a focus on practical Behavior and Indoor and outdoor activites; slwations; Manage individual and team learn and acauire critical leadership | performance; learn and acquire critical skulls leadership skills: Operations Principal operational issues in an Principal operational issues in an organization; highly practical; organization; highly practical; operational operational strategies, process strategies, process analysis and managerial analysis and managerial options options Strategy Focus on the basic concepts; highly | Focus on the basic concepts; highly practical; both formulation and implementation; analyze an ill-structured competitive situation and give solutions. Emphasis on GovernanceMANAGEMENT EDUCATION AND VALUE BASED CURP!CULUM ® 71 The curriculum needs a make over so that business schools can sustain over the years to come. Introducing new mantras is not the key. The gaps in a business school curriculum are: oa Oo ao To train and educate an individual beyond “marketing” or “finance” moving back to being a general management program. . To create an atmosphere [and eventually a habit] where he can have a “borderless mind” The ability to correlate issues in business to any other subject, e.g., the Mercedes Tata relationship dates from the time when Germany was ruled by Hitler, till dace Make them “street smart” and not mere managers. Stress more on skills like selling, negotiating, managing — yourself and the organization, communication skills and entrepreneurship. Remove the use of Internet from the curriculum. Make the computer a mere typing tool*! ‘Among the topics that will find relevance with the student, and to which the student must be made to take cognizance of are [illustrative]: 5 Strategy as inferior choice and distinct from Operational Efficiency and thus the need for an integrative approach. The role of ethics in commercial decision making. Labor laws and dealing with practices like child labor/social causes. Ecological imperatives including trade in environmentally friendly products, the role of the “green dot”. ‘The issue as quality, and quality as essentially an ethical question. The concerns with profitability and the definition of “fair” profits; related to this, the reconciliation of profits with rent seeking behavior. The individual vs. the organization; the role of HR is converging individual aspirations with organizational ones. The broader issue of leadership, motivation and the questionable “follower-ship”. One problem that Indian Business Schools are facing, which Lam sure must be.a universal problems, is he downloading of project reports, exc. This bas even led ro a flourishing market in one of the crowded areas of New Delhi, where students can buy a soft copy of an indexed project for at Uirle as $5!72 ™@ CORPORATE SOCIAL RESPONSIBILITY It is clear that we are looking at a much more integrated approach to management education, something that can be well defined over both the business domain as well as the social domain. WHY CSR AND ETHICS? Apart from the integrated approach to education, a value based approach is also an imperative, A course in CSR and Business Ethics must not be regarded as an attempt to convert sinners to saints, preach absolute truth or deter’ the morally vulnerable. It will help groom the student to anticipate issues beyond the six functions of management science. It will enable him to examine conceptions of leadership where values and ethics play the central role. It will require students to reflect on their own values and ethics and examine the importance of them to their own definition of leadership. The course should be able to deliver issues like: the definition of success in business, race, gender, the role of culture, the privileged place of the executive and new understandings or models of human beings. It will be a systematic analysis of business as a moral enterprise. ‘There is a need to build up the competencies of future generations to addtess a rapidly changing context, which is making the management of ‘the interdependency between business and its economic, social and ecological environment a greater concern for individual businesses and their stakeholders. Today's decisions are not simply in terms of maximizing shareholder value bur also in terms of minimizing the negative and maximizing the positive environmental and social value of their activities. Conventional models of organizational behavior, strategic management and even business ethics do not provide adequate preparation for managing companies in this rapidly evolving business environment. Every manager needs greater understanding of this area and enhanced skills to operate within the new context. For example: (1 Business leader: These wider aspects of business performance are now more commonly discussed by the leaders of large companies but few have yet implemented policies and management processes to deliver them, OG = Middle-management: There is a often a substantial segment of middle management in even those companies most exposed to the pressure of societal issues, sometimes referred to as the clay layer, who have no experience of this aspect of business, have received no education or training in it and are focused on pursuing the financial goals which still dominate their performance contracts.MANAGEMENT EDUCATION AND VALUE BASED CURRICULUM m@ 73 Stakeholders of companies: Particularly those in governmental and non- governmental organizations who work with this area of business and can be influential in raising the social and environmental performance of business. The educational need is less about the traditional learning about business and more about developing leadership skills. These are skills such as thinking globally, developing and managing a shared vision and set of values within a complex and uncertain environment, sharing leadership and managing across boundaries, building teamwork and partnership and demonstrating personal integrity. Seeing the above comparison, all business schools, by and large, have a similar curriculum, From teaching general management subjects to area of specialization ~ all walking on the same path, the difference is which school is closer to reality. The reality is that a business school curriculum is lacking skill and mental development and instead is concentrating on “elective” and “specialization”. B-schools have become market need oriented and are considered as suppliers of “MBAs” to the business world. The role of a business school is to provide such a type of education that removes the barrier of thinking “marketing” or “finance”. What happens in case the financial markets are down [recession]? Where do finance specialists go? If they were generalists, they could probably get accommodated in any situation FACILITATING CSR THROUGH HOLISTIC LEARNING In our mind, the adoption of CSR curriculum by the business schools can be supplemented by taking a holistic approach to learning. This can be introduced by reemphasizing the study of three additional subjects in the MBA program, History, Philosophy and Literature’. Why Study History?: We have probably forgotten that history ‘helps us understand People and Societies — history offers a storehouse of information about how people and societies behave. Understanding the operations of people and societies is difficult, though a number of disciplines make the attempt. How can we evaluate war if the nation is at peaco—unless we use historical materials? How can we understand genius, the influence of technological “innovation, or the role that beliefs play in shaping family life, if we don't use what we know about experiences in the past? History offers the only extensive evidential base for che contemplation and analysis of how societies function, and people need to have some sense of how societies function simply to run their own lives. Perhaps the ultimate ability to think holistically is to view Ina tangential retrospect, perhaps one of the best holistic courses was/is the famed PPE at Oxford, where it was proudly claimed that “gentlemen” took the pass course in Politics, Philosophy and Economics () as a reflection of overall personality development.74 @ CORPORATE SOCIAL RESPONSIBILITY things from a long-term perspective, some thing that history excels at. Arnold “‘Toynbee's ‘A Study of History’ — or any similar book could be made compulsory reading for an MBA program. History Contributes to Moral Understanding - “History is teaching by example” is one phrase that describes this use of a study of the past—a study not only of certifiable heroes, the great men and women of history who successfully worked through moral dilemmas, but also of more ordinary people who provide lessons in courage, diligence, or constructive protest, from Socrates to Nelson Mandela. What skills will a student of business develop by reading history? 1 The Ability to Assess Evidence (1 The Ability to Assess Conflicting Interpretations © Experience in Assessing Past Examples of Change and Change Management The reasons history of some level should be taught is to identify a broad perspective is that it gives students the range and flexibility required in many work situations. They develop research skills, the ability to find and evaluate sources of information, and the means to identify and evaluate diverse interpretations. Work in history also improves basic writing and speaking skills and is directly relevant to many of the analytical requirements in the public and private sectors, where the capacities to identify, assess, and explain trends is essential. Why Study Philosophy?: People today often emphasize “marketability” when they talk about a university education. If marketability means learning what will make you an attractive candidate for employment, then philosophy has @ great deal to offer. There is no doubt that an education in business, commerce, finance, marketing, economics, etc., provides immediate skills and practical tools for finding entry-level employment. Philosophy does not emphasize such skills but it provides an ideal atmosphere in which one can develop the more basic abilities on which they depend. Philosophy is irrelevant to marketability only if learning how to think, analyze, and communicate an idea clearly is inapplicable to workaday life. Management guru Henry Mintzberg’, who divides his time between McGill University and the European business school INSEAD, has long criticized business school education for future CEOs and is particularly withering about MBA programs. But he admits it is hard to advise young would-be leaders to avoid business programs when recruiters 5 Globe and Mail article "What it Taker to Make a Million,” (April 24, 1996), also Minseberg, Musings in Management, Harvard Business Reviews 1996MANAGEMENT EDUCATION AND VALUE BASED CURRICULUM &@ 75 favor them so much. He would want companies to look for other training in future leaders, arguing business skills cannot be taught in a classroom and are not easily transferred between companies. “I would get a university degree, not in business, but in philosopiny or history, or geography, or whatever you like. Just learn to think,” he says. “Then get into an industry or organization or sphere you really like and work your way up by learning to lead.” Why might someone like Mintzberg call for a recurn to basics? Why a solid undergraduate grounding in the areas of thought and analysis, before the jump into business or any leadership-driven, top management position? There are many possible answers to these questions. It may be that leadership and top management success depend on skills which are less job-specific and more general: thinking logically, analyzing critically, as well as being able to communicate articulately and precisely both orally and in writing. Why Study Literature?: The business schools have to re-enforce the basics of few subjects and relate it to business. For example if a professor is teaching about power and leadership, Shakespeare can be a great cxample. Hamlet can thus be looked as an exercise not only in leadership but also the divergence between Mission and Vision. Mark Antony's speech in Julius Caesar “Friends, Romans, Countrymen ...” can be used effectively to teach the basics of ‘communication. In fact, most of Shakespeare's plays are replete with examples f management structures, office politics and, more often than not, incest and pile of bones at the conclusion (for murder, read ‘shafted’; and for death and banishment, read ‘sacked””) This is usually due to a bad manager/King or a bad system of management. Por instance, Shakespeare was well aware of the -need for ‘unity of command’ knowing that a ‘divided house’ is more likely to fall and that any organization needs to have one clear leader, be it a house or a kingdom [or a business!) Running a kingdom is, after all, not too distant fiom running a business; the same rules apply. ‘Hence, if professors use English literature as a form of explaining a concept, he students gain the following: They shall be forced to read at least the relevant aspect of the play [enhancing reading comprehension]; Reading the lines is nor enough, reading in between them is the key to the problem; Enhances the ability to think way beyond the text or lecture and get solutions from a very totally diverse, “non-management” subject; Encouraging ‘out-of-the-box’ thinking, as when Birnham Woods move forward to attack Duncan-vindicating the prophecy of the three witches (Adacheth) =76 @ CORPORATE SOCIAL RESPONSIBILITY The following table illustrates some elements of the “out of box-thinking” process that only a holistic education can bring. Subjects Example of CSR content Philosophy Why do business exist, what is the goal of a corporation etc? Politics / Geo-Politics What are the ethical issues involved in shifting polluting industries to the third world? Development of thought "Strategy as Choice™ made famous by Porter can actually be traced to Lionel Robbins, [1932]. Can Corporate Philanthropy be viewed ay strategic choice? History related to business Reverberations of the Gold Rush of 1849 and the Klondike Gold Strike; the earlier Louisiana Purchase by Jefferson, The transatlantic gold transfers after WWI and the rise in American wealth leading to the Great Depression of the 1930s. Keynes vs Friedman and World War Il, are still felt today. English Literature Hamlet a5 a study in Leadership, and the ethical issues involved of not murdering his uncle when he was in prayer. Business relationships Till today Britain is India’s oldest steady trade partner: why and how has this relationship being maintained? Is is correct to give Britain preferential treatment? Religion & Culture Understanding the differences between Indian Buddhists and Thai Buddhists. Does this have an impact on trading patterns? Learning from The Godfather. CSR of Michael Corleone towards the members of Movies/fiction/non fiction the “family”; ‘The Ten Commandants’ that Moses received on Mt. Sinai. Business planning Is it ethical for a hospital to be run on conimercial lines, the case of Apollo Hospitals. ‘Skill development Negotiating, managing, communication, and entrepreneurship in the area of NGOs. Taw The differences between corporate social accountability and corporate social responsibility. Environmental Concerns in a | How something can be simultaneously both a short-term cost and Business long-term revenue! The role of perspective CONCLUSIONS Where does this get us? It is obvious that the current curricula content of the MBA education as we see it is totally inadequate to meet the demands of the modern global manager who has to take an integrated “general” management view of the global problems. The integrated general management view has to be a holistic one, where the different streams of education like politics, history, law, etc., are integrated to serve as inputs to the managerial decision making process. For this to be changed, we need to revise the entire approach to education by removing the emphasis on specialized “elective” courses, to a more holistic approach that can be done through a “return to the classics” approach of studying History, Philosophy and Literature.MANAGEMENT EDUCATION AND VALUE BASED CURRICULUM 77 Three action points stand out in their imperative requirement: 1. Are the current practices and processes in curriculum development amenable to changes? 2. What is the leadership role that has to be played by key B-Schools to bring about this change?, and 3. What are the ways in which we can influence stakcholders’ (prospective employers) perceptions about the importance of CSR and ethics. The first question is perhaps the easiest to answer. It may not take too much ofan effort to bring about this change. It may also be done insticutionally. For example, AICTE may give recognition only when these courses are included in the criterion. The second and third questions are, however, difficult to answer. The issue of leadership will have to rest with the top 10 or 20 business schools, and more importantly, in.a unified, concerted manner, It is only by this show of unity, can both questions be addressed : as catalysts to facilitate curriculum development in other B-Schools, and more importantly, to convince industry of the need to have managers well trained in the art of making not only legal, but also moral and above all ethical choices, With this perhaps we can help bring up a more relevant breed of business managers.78 @ CORPORATE SOCIAL RESPONSIBILITY. ‘Sem | Courses Ist Year ‘Sem | Courses it Year Management Accounting | 4 | Strategic Management / Business Policy | Math & Stats for Management | International Business Managerial Economics International Marketing ‘Computer Appl. In Management Electives [3] Organizational Behavior | Human Resource Management Foreign Language [optional] Management Accounting I 3__| Strategic Management / Business Policy 2 | Maths & Stats for Management 2 Business laws Financial Management | International Finance Organizational Behavior Il Electives [3] Marketing Management | Operations Management | Macroeconomic Theory and Policy Foreign Language [optional] Marketing Management Il 6 | Gco-Pol Environment of Business Financial Management I Electives [3] Operations Management Il Research Methods Business Communication Skills Management Information Systems Electives are normally offered in the following areas: 1 Av bp ww Organizational Behavior and HRM? Marketing Finance Operations Management Policy and Strategic Management Information Technology This area may offer some relevant electives like [1] Self Discovery and Personal Growth Lith (2) Leadership, Group Dynamics and Exhies, et, Exact nomenclavure may vary across institutes and instructor.