Why B-Schools Are Tackling Social Issues - Poets&Quants

Former Uber CEO Travis Kalanick

Business Schools Are Revising Curriculum To Address Social Issues

In mid 2017, Uber’s Travis Kalanick stepped down as chief executive following months of turmoil. The move came after Uber had been exposed for having a culture riddled with sexual harassment and gender inequality—the image of a stereotypical Silicon Valley start-up gone wrong.

Across the nation, MBA programs are studying real life companies like Uber, and reshaping curriculum to explore ethical and social issues behind the headlines. David Gelles and Claire Cain Miller, reporters at The New York Times, recently examined how MBA programs are adapting to tackle issues like sexual harassment head on.

“There’s a turning point in what’s expected from business leaders,” Leanne Meyer, co-director of a new leadership department at the Carnegie Mellon Tepper School of Business, tells The New York Times. “Up until now, business leaders were largely responsible for delivering products. Now, shareholders are looking to corporate leaders to make statements on what would traditionally have been social justice or moral issues.”

A Push for Change

The New York Times reports that b-schools across the nation are revising curriculum to prioritize social and environmental responsibility. “At Vanderbilt, there are classes on Uber and ‘bro’ culture. At Stanford, students are studying sexual harassment in the workplace. And at Harvard, the debate encompasses sexism and free speech.”

From the #MeToo movement to social justice protests in the NFL, social issues have created a call for change. Such calls are filtering their way into the MBA classroom.

Revised Curriculum

In a recent survey by a United Nations group and Australia’s Macquarie University, business students report that ethical issues are a business’s most important responsibility.

LaToya Marc is a graduate of Harvard Business School and now works in sales and operations at Comcast. Marc tells The New York Times that ethical issues are starting to directly affect how a company operates and makes decisions.

“There’s a growing body of M.B.A.s who are really passionate about this,” Marc says. “It may not affect your bottom line directly, but it needs to be affecting how you make decisions.”

At Georgetown, Professor Ed Soule’s course is addressing Uber’s sexual harassment and how “companies like Amazon respond when attacked by Mr. Trump.”

“Ethics and values have taken on more significance,” Soule tells The New York Times. “It has to do with all of the things going on in this administration, often things that challenge our understanding of ethics and leadership.”

At the Stanford Graduate School of Business, an ethics course draws directly from topics like behavioral economics and psychology to address issues like sexual harassment. In the course, Stanford students “studied psychological research showing that people are more willing to challenge authority if at least one other person joins them, and discussed ways to encourage such reporting.”

Fern Mandelbaum is a venture capitalist and will be teaching a new class at Stanford GSB called Equity by Design: Building Diverse and Inclusive Organizations.

“It’s not just how the C.E.O. of Uber was treating women,” Mandelbaum tells The New York Times. “The bias is throughout the system.”

At Carnegie Mellon, a new leadership department sprouted up after alumni called for more training related to “skills like empathy and communication.”

Gender Equality

Gender equality has become a major topic of interest among business students. The Forté Foundation, a non-profit organization that works with business schools to launch women into fulfilling, significant careers, recently developed a tool kit to educate and partner men with female peers to encourage gender equity across campuses. According to The New York Times, two dozen schools have already established groups, labeled as “Manbassadors,” amongst their campuses committed to gender equity in schools and the business world.

Alen Amini is a third-year student at Dartmouth’s Tuck School of Business and founder of its Manbassadors group. Amini tells The New York Times that the goal is “making sure that as men we’re very aware of some of the privileges we’re afforded simply because of gender.”

For Soule, the Georgetown professor, it certainly seems like there is a shift in the classroom atmosphere.

“Something has changed,” he tells The New York Times. “I would be kidding you if I told you there wasn’t a different vibe in the classroom.”

Sources: The New York Times, Principles for Responsible Management Education

Applications Increasing Across Business Schools

A majority of US business schools are seeing a rise in applications.

Ilana Kowarski, a reporter at US News, reports that over the past decade a majority of the 107 ranked business schools experienced an increase in applications.

According to the US News report, applications among top 10 MBA programs increased 26.9% between 2006 and 2016. Beyond the top 10, applications are increasing as well. US News reports that the average number of applications there rose 11.2% over the same period.

The University of Delaware’s Lerner College of Business and Economics had the greatest increase in applications with a 185.5% jump between 2006 and 2016.

According to Times Higher Education, a 2016 Application and Enrollment Report by the Association of MBAs (AMBA) found a net growth of 5% globally in the number of applications for AMBA-accredited programs in 2014-2015. Compare that to four years prior to 2014, when application numbers saw a decrease by 14%.

Reasons for Increase in Applications

The biggest reason for the increase in applications is the belief that an MBA will pay off as a investment and provide opportunities for prominent leadership positions.

Andrew Main Wilson is chief executive of AMBA. Wilson tells Times Higher Education that quality business education has become a crucial necessity as competition continues to grow.

“Whichever country you’re living in and working in, you’re facing global competition, and the need to be a more professional manager,” he says. “The need for the best possible business education you can afford has never been more important or desirable.”

Jack J. Baroudi is a professor and senior associate dean of academic programs at the University of Delaware. Baroudi tells US News that the increase in MBA applications reflects the “relevance of business school courses to everyday working life.”

Acceptance Rates Dropping

As demand for quality business education increases, competition grows as well.

According to US News, average acceptance rates among top 10 MBA programs dropped 2.2% between 2006 and 2016 (from 18.1% in 2006 to 15.9% in 2016). Among all ranked schools beyond the top 10, the acceptance rate fell from 48.9% to 48.1%.

Alex Min is the CEO of The MBA Exchange, an admissions consulting firm. Min tells US News that business schools can afford to raise their standards given the increase in applications. Increased competition and standards draws better talent, which makes a school more attractive to future applicants. Yet, Min also says that schools with fewer applicants could also lower their academic standards, which in turn, would make them less attractive to applicants.

To Wilson, demand for quality business education will only continue to grow, which means competition will too.

“People realize the world is not going to suddenly get a lot easier,” he tells Times Higher Education. There’s no point in waiting two or three years to see if the [economic] climate might be more favorable.”

Sources: US News, Times Higher Education

How To Secure an Acceptance Letter

Applying to business school takes more than strong academic and exam performance. For many, strengthening your application requires multiple steps.

Ilana Kowarski, a reporter at US News, recently discussed 10 ways applicants can strengthen their application and secure an acceptance letter.

1.) Take time for introspection

Understanding your strengths and weaknesses is crucial to building a strong application, experts say. Although it’s one thing to know those strengths and weaknesses, it’s another to convey them effectively to admissions committees.

Chad Losee is managing director of MBA admissions and financial aid at Harvard Business School. Losee tells US News that understanding how you make decisions is crucial to acceptance.

“We don’t feel that people need to come in with a life plan already mapped out, but we do like to get a sense for how people think about the decisions that they make,” he says.

Conveying this understanding is helpful in interviews. A strong interview evaluation can often make the difference between acceptance and rejection. The best way applicants can have this understanding is by taking the time to have introspection and self-awareness regarding their decisions.

Soojin Kwon is the admissions director with the Ross School of Business at the University of Michigan—Ann Arbor. Kwon tells US News that the applicants who stand out in interviews are the ones who offer an introspective reflection on their career.

“It’s being able to have perspective about the things that you’ve done and the import of those things, because there’s value in everything that an applicant might have done in their career,” she says. “It’s knowing how that translates into something that will be valuable in your business school experience, in life and in work.”

2.) Prove your potential

Self-awareness and introspection is the key first step to acceptance. Once applicants understand themselves, the next step is to prove to admissions committees that they have the potential to succeed.

Proving potential comes from evidence that backs up a resume. Stacy Blackman is a contributor at US News and founder of Stacy Blackman Consulting, an MBA admissions consulting company. Blackman says leadership experience can help an applicant stand out.

“To stand out in the eyes of the admissions committee, you need to provide hard proof that you made a difference,” she says. “But it’s not about the scale of your achievements – rather, it’s the fact that you made your mark.”

3.) Know your dreams and those you admire

If you know what you want to accomplish in your career, it can also be helpful to understand those you admire.

Blackman says it’s helpful to think about whose job you wish you had.

“When you think about envy, it probably means you’re thinking about people doing things that you wish you were doing,” she says in a US News blog post. “Ask yourself, ‘Who is this person? What about them would I like to emulate?’ That can help you define your goals in many ways.”

4.) Know your contributions and how you’ve learned from them

Strong academic performance and stellar exam scores are important to acceptance, but it’s also crucial to highlight positive contributions you’ve made and how you’ve learned from them — especially if your application lacks strong grades and exam scores.

Direct finance or consulting experience is also attractive, but not necessary for acceptance, experts say.

“You don’t need that,” Barbara Coward, a Maryland-based MBA admissions consultant, tells US News. “Every work experience you have can be extremely valuable. It’s how you present it and what you’ve learned from it and what you’ve accomplished.”

5.) Take on challenging projects

Growth comes from perseverance and determination through difficult challenges and admissions committees love to see applicants who continuously challenge themselves.

S. Michael Sury is a lecturer of finance with the McCombs School of Business at the University of Texas – Austin. Sury tells US News that applicants with a wide array of talents are attractive to admissions committees. He says applicants should push themselves to tackle challenges that allow them to cultivate new skills.

“Taking part in industry conferences, speaking engagements, teach positions or volunteering activities can propel an otherwise average candidate into a more competitive one,” he tells US News.

6.) Address your weaknesses

Taking on challenges is directly related to addressing weaknesses. Often times, if an applicant lacks key skills such as leadership, taking part in activities that forces them to develop such skills is useful.

“Leadership experience and potential is highly prized at business schools but doesn’t come easily for everyone,” Blackman says. “Think of weaknesses as opportunities for growth.”

7.) Demonstrate academic versatility

Well-roundedness is a key factor in sticking out. For many applicants, this can mean showing interest outside their direct field of study.

For example, Sury says, engineers can demonstrate academic versatility by participating in extracurricular activities unrelated to engineering.

“Likewise, if the candidate is a more traditional business major, he may consider taking up vocation skills like programming or a second language,” Sury adds.

8.) Take entrance exams early

Timeliness is key to application season and experts say it’s a good idea to take a diagnostic exam for both the GRE and GMAT. Once you’ve decided which business school entrance exam you’ll be prepping for, it’s best to take the exam as soon as you feel ready. Doing so, experts say, will free up time later on to focus on application materials such as interviews and essays.

Shaifali Aggarwal is founder and CEO of the Ivy Groupe admissions consulting company. Aggarwal tells US News that applicants who wait too late to take their standardized test will have to balance both test prep and writing admission essays.

9.) Take time to polish and edit application materials

Taking your entrance exams early can allow you ample time to ensure your application is polished and error-free.

David Simpson is admissions director of MBA and masters in finance programs at the London Business School. Simpson says that one of the worst mistakes applicants can make is rushing to write application materials.

“Take time to consider how every sentence makes you sound,” he says. “Not just the essays, but the main application as well.”

10.) Allow time for recommendations

People are naturally business. That’s why it’s important to remember that your recommenders need ample time as well to write quality letters. Waiting to ask for recommendation letters last minute can not only lead to poor letters, but can also come off as rude.

Simpson tells US News that it’s unlikely recommenders will endorse candidates enthusiastically if they aren’t given the respect of time to properly write a letter.

It’s also important to allow time to establish a strong relationship and understanding of your strengths and weaknesses with your recommender. Doing so can allow your recommender to make a strong argument for your acceptance.

Sources: US News, US News, US News, US News, US News, US News

Businessman holding plant sprouting from a handful of coins

How To Choose A B-School for an Investment Career

The investment world is difficult to predict. For those students interested in pursuing an investment career, an MBA education can help them develop foundational skills and qualities that are valued in any market.

Ilana Kowarski, a reporter for US News, recently discussed 10 traits applicants should look for in business schools if they intend on pursuing an investment career.

1.) Cutting-edge training

Technology is always evolving and it has influence in nearly every industry. Experts say it’s important for applicants to look for schools that can train them in new investment technologies.

William Goetzmann is a professor of finance and management studies at the Yale School of Management. Goetzmann tells US News that traditional methods, like “fundamental stock selection is something that’s being replaced by more quantitative investment methods – even high-tech, big data methods.”

Choosing a school that can train students in new methodologies is important, Goetzmann says.

“So for a career that’s positioned for the future,” he tells US News. “I think students have to think about whether they are going to a place that offers them the opportunity to learn about new methodologies – new investment techniques – as well as traditional techniques.”

2.) Innovative Faculty

Similar to how practicing medical faculty can indicate the quality of a medical school, investment practicing faculty are also key indicators that a business school can provide solid training.

Goetzmann says applicants should seek out schools with faculty who actively write for practitioner publications and are doing influential research.
“There are opportunities to actually study with people who have changed the way that the world invests,” Goetzmann tells US News.

3.) Investment-related extracurricular activities

Investment-related extracurricular activities can often be found through a school’s investment club. These clubs will typically invite industry leaders to lecture at campuses and help members to explore career specialties.

Victor Zhu is a second-year MBA student at Yale and co-president of its Investment Management Club. Zhu tells US News that club members regularly compete in stock pitch competitions — which is often a way to attract hiring managers. “This club is crucial in terms of guiding students through the recruitment process,” he says.

4.) Student managed investment portfolio

A number of schools also offer students the opportunity to manage an investment portfolio. Student-run investment funds often are hands-on opportunities for students to make investment decisions.

“Students with interest in post-degree asset management positions should determine if schools have a portfolio they can co-manage – preferably a real money one tied to a class, but a virtual fund managed by a student organization can substitute,” Helen Dashney, director of the Financial Markets Institute at Michigan State University’s Eli Broad College of Business, tells US News.

5.) Active and practicing alumni network

A strong active alumni network can help students gain access to the industry. Moreover, strong alumni networks can serve as an indicator of how many grads go into the industry.

According to efinancialcareers — a financial services careers website — New York University’s Stern School of Business has the largest proportion of MBA grads who go into finance, with 28% of the class of 2015 choosing investment banking.

Seeking schools with a high number of practicing alumni can give you an understanding of how successful a school is in sending its students into the industry.

6.) Relevant coursework

Another key strategy is to seek out schools that offer relevant coursework in investments. Courses in behavioral finance, risk management, and data science are often indicators that a school can offer investment training.

According to Investopedia, behavioral finance “seeks to combine behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions.”

Topics like risk management can teach students “how to decide whether the potential reward of an investment outweighs the risk of that investment,” Kowarski says. Data science, according to Investopedia, “combines different fields of work in statistics and computation in order to interpret data for the purpose of decision making.”

 

Christine Bolzan is a career advisor at MIT’s Sloan School of Management and founder of the Graduate Career Coaching company. Bolzan tells US News that courses in these topics can teach students hot skills that are in demand.

“These students will graduate not only with deep finance knowledge, but also an ability to leverage machine learning techniques and artificial intelligence to create complex technical solutions and investment strategies,” Bolzan says.

Sources: US News, efinancialcareers, Investopedia, Investopedia

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