BUSINESS SCHOOL EFFICACY - OPINION ESSAY

I Teach at a Business School. It’s Time to Shut Them Down.

This fall, another cohort of ambitious young professionals has arrived at business schools around the world for two-year programs with price tags in the six figures. Their presence at some of the nicest and shiniest buildings on campus renews a familiar question: What exactly is an M.B.A. for?

This question has become more urgent as business education has expanded dramatically in the past decades. Today, nearly one in five American undergraduates majors in business, and the M.B.A. is the most popular graduate degree in the United States.

I have taught in business schools for over 20 years, at Harvard, Cornell and Cambridge. While some students appear to care only about their future compensation, I have met many with nobler goals: engineers who want to commercialize clean energy, physicians determined to fix the health care system, nonprofit leaders who have watched good missions fail for want of good management.

These students enroll hoping to learn what business schools say they teach: how to manage people, how to allocate capital and resources and how to make the world a better place through leadership. But I’ve come to see how the institution can reshape the worldviews of those who enter it, often undermining the very ambitions that brought them there.

This change can take place in a single semester. Again and again, I have watched students abandon their altruistic intentions, instead becoming consumed by whether to choose careers in consulting or finance and who will land a summer internship at McKinsey or Goldman Sachs.

The modern business school is designed to promote dealmaking, simplification and optimization. This mind-set has escaped containment and has spread to the wider world. Business-educated elites increasingly populate political leadership, bringing with them a transactional view of public life. One investigation found that out of 45 current heads of state who had studied in the United States, 10 were business majors, and six of those also earned M.B.A.s. President Trump, a Wharton undergraduate, has treated foreign policy and government itself as extensions of deal making and personal gain.

Surely, not every business graduate governs this way. But recent research by the Nobel laureate economist Daron Acemoglu and colleagues shows what tends to happen when you put an M.B.A. in charge. In both the United States and Denmark, firms that appointed managers with business degrees cut wages and reduced labor’s share of income. Yet these companies didn’t become more productive, nor did they grow sales, investment or employment any faster. What registers as managerial acumen turns out to be wealth transfer — value moved away from workers and toward profits, shareholders and executives.

I’ve come to realize that business schools don’t just reflect our economic system — they actively manufacture its priorities and normalize its harms, training the future leaders who will design and defend the structures driving our overlapping global crises. Tinkering at the margins with a class on corporate responsibility or ethics is not going to help. We don’t need to “fix” business schools. We need to abolish them.

Business schools have always struggled to justify their place in the university. A medical school’s core justification is health, and a law school’s is justice — undisputed public goods. Business schools are organized explicitly around a private good: the pursuit of profit. The American sociologist Thorstein Veblen identified this tension a century ago, criticizing university schools focused on commerce because they “need imply nothing in the way of serviceability to the common good.”

- Author: Chris Marquis (Mr. Marquis is a professor at the University of Cambridge Judge Business School and the author of “The Profiteers: How Business Privatizes Profit and Socializes Cost.”), The New York Times

Read more...