How B-Schools Are Addressing Gender Inequality - Poets&Quants

How B-Schools Are Addressing Gender Inequality

Dogged by uneven female representation, business schools are putting forth initiatives and scholarships aimed at improving gender diversity in the business world.

Madison Marriage, a contributor at Financial Times, recently discussed the gender divide in business and how b-schools are addressing it.

Women Lag Substantially Behind Men in Leadership Positions

Among S&P 500 companies in the financial services industry, women make up 54% of the labor force, but are only 29% of executive and senior-level managers and merely 2% of CEOs, according to Catalyst, a global nonprofit.

Notably, the percentage of women running mutual funds fell in the past decade from 11% in 2008 to 10% by the end of 2017, according to Morningstar, a research firm. Among the 25 largest banks in the world, women account for less than a quarter of senior staff, according to data submitted to Financial Times.

Reasons Behind Gender Inequality

There are three main reasons, according to the Harvard Business Review, as to why advancement toward gender equality at work has slowed since the 1990s. Attitudes slowly became less egalitarian with gender. Gender integration flat-lined in many occupations. And the gender wage gap began decreasing at slower rates.

“These three trends underscore the paradox of the gender revolution broadly, and more specifically in management,” William Scarborough, the paper’s author, writes. “Yes, we’ve seen amazing progress in many measures of gender equality over the past several decades. Women have surpassed men in nearly all educational measures, and their gains in the workforce constitute one of the largest changes in the history of labor. These are huge advances that should be celebrated. But equal numbers do not always translate into equality itself.”

Rather, Scarborough argues that in order to achieve true gender equality, it’s crucial to recognize how pattern shifts disadvantage women over time and respond proactively.

B-Schools Take Proactive Steps Towards Equality

Among those responding proactively? Business schools.

A number of business schools across the world have introduced initiatives and scholarships aimed at improving gender diversity both within schools and, ultimately, in the business world.

The Lloyds Scholars MBA Scholarships for Women program has provided $47,000 towards course fees at the London Business School since 2014, according to Financial Times. It has also provided a full tuition scholarship offered by the 30% Club, a UK organization that campaigns for greater diversity on boards, at the Alliance Manchester Business School since 2017.

At the University of Maryland’s Robert H Smith School of Business, an ambitious plan to reach gender parity by 2020 was announced in 2015.

When the plan was announced, 36% of the school’s MBA population were women. Now, that number is at 39.5%, according to Financial Times. The school’s officials admit that “despite the progress, our intake of women across our MBA programs has not increased as rapidly as necessary.”

Yet, the University of Maryland is determined to continue building upon its work. Its plan follows a three-pronged approach, according to Financial Times: talks at secondary schools and universities, recruitment events for female professionals, and new course focusing on topics such as female entrepreneurship and confidence.

At Imperial College Business School, gender equality is one of the school’s 10 strategic priorities. According to Financial Times data, the number of female MBA students at Imperial is up from 29% in 2014 to 44% today.

Leila Guerra, associate dean of programs at Imperial, tells Financial Times that the school improved female representation by partnering with organizations to focus on gender equality and ensuring that its marketing materials were “gender neutral.”

The school next goal is to ensure that its faculty is more gender diverse. Women currently make up 30% of the faculty, a slightly higher representation when compared to the 28% average across the top 100 MBA programs ranked by Financial Times.

“We are not there yet,” Guerra tells Financial Times. “That is something that is a priority. I hope we will get there in the next five years.”

Sources: Financial Times, Catalyst, Morningstar, Harvard Business Review

How To Lower Student Debt

Student debt in America has reached staggering heights.

According to data recently published by the Federal Reserve Bank, more than 44 million Americans collectively hold nearly $1.5 trillion in student debt. One way to lower that debt? Volunteer work.

“Taking part in community service is one of the best ways to get help with student loan debt,” Michelle Argento, of Student Loan Hero, writes. “Many organizations offer student loan repayment assistance in exchange for volunteer work. As a result, you can make a difference in the lives of others while still chipping away at your student debt.”

Farran Powell, a reporter at US News, recently shared specific organizations that will help indebted students pay down their student debt through volunteer work.

A Platform That Connects Individuals To Social Causes

The Shared Harvest Fund is a platform where users can create a profile and list specific social causes they are passionate about. Participating non-profits can connect with users for volunteer work. Generally, users can expect to receive a monthly stipend between $250 and $1000, according to US News.

NanaEfua B.A.M. is the founder and CEO of the Shared Harvest Fund. B.A.M. tells US News that the organization refers to its volunteers as “debtfreelancers,” who use their skills to contribute to social causes while reducing their debt burdens.

Jan Overton, who took out a six figure amount in student loans to attend the University of Southern California, says she looks for work that’s conducive to her schedule, but also helps those in need.

“Even if it’s only an extra $250 – at least those hours I work are giving to someone else to help someone,” Overton tells US News. “If I could help other people at the same time while paying off my loans, not just for a job, but actually enriching my life, it’s such a better way to do it.”

Organizations That Offer Student Loan Repayment

A number of organizations offer student loan repayment in return for service work.

The National Health Service Corps offers a loan repayment program for health care professionals. Qualifying applicants give a two-year commitment of service in return for up to $50,000 in loan repayment, according to US News.

Teach for America is an option for those interested in education. Often, volunteers serve in underserved areas to “strengthen the movement for educational equity and excellence.”

Teach for America workers get paid a salary, typically between $33,000 and $58,000. Work in Teach for America also counts towards Public Service Loan Forgiveness.

AmeriCorps is another option for service work. The organization places volunteers in service positions from helping with relief efforts to working in conservation.

According to Student Loan Hero, AmeriCorps requires 12 months of full-time service and in return, volunteers can receive the maximum amount for the Pell Grant for the year. For 2017-18, that amount was $5,920. In addition, AmeriCorps volunteers can count time in AmeriCorps toward Public Service Loan Forgiveness.

“Since the program’s inception, the more than 1 million AmeriCorps members who have served have earned more than $3.3 billion in education awards to fund their education – more than $1 billion of which has been used to pay back student loan debt,” Samantha Jo Warfield, a spokesperson for the Corporation for National and Community Service, tells US News.

Sources: US News, Student Loan Hero, Federal Reserve Bank

B-Schools Quick To Teach Cryptocurrency

What is the latest institutions to dive into the cryptocurrency boom? Business schools.

Business schools are rushing to launch courses on cryptocurrencies and blockchain following increased demand from students, according to Financial Times.

“This is moving much faster than people expected,” David Yermack, professor of finance and business transformation at the New York University Stern School of Business, tells Financial Times. “Business schools will have no choice but to update curriculums.”

An Increase in Value and Student Demand

According to Financial Times, Bitcoin’s value doubled in a month to peak at about $20,000 in December. Last week, that value detracted to about $6,500.

Jens Martin, program director at the University of Amsterdam Business School, tells Financial Times that the technology behind cryptocurrency is what b-schools are interested in.

“The increase in value in the cryptos played a large part in the increase in public interest,” Martin tells Financial Times. “However, we feel that the finance industry is very interested in the technology itself and the possibilities it offers. We see many applications not only from people with a banking background, but a more diverse group who are interested in applying these concepts to finance.”

It’s not just students who are demanding skills and knowledge in the technology, but companies as well.

Robert Wardrop, director and co-founder of the Cambridge Centre for Alternative Finance, part of the university’s Judge Business School, tells Financial Times that a number of tech companies, such as Amazon, Google, and Microsoft are demanding a workforce that is knowledgeable in the technology behind cryptocurrency.

“The core focus of interest is growing from non-financial firms,” he tells Financial Times. “[These insights] are essential to related projects that these businesses are working on.”

New Curriculums Bloom At B-Schools

Which MBA programs are offering courses in cryptocurrency?

Stanford Graduate School of Business, Wharton School of the University of Pennsylvania and Georgetown University’s McDonough School of Business are among the big names, according to CNBC.

At Stanford, a new full-time course was introduced this May simply titled “Cryptocurrency.” The course was a grass-roots effort by students.

“Many of us will have to discuss blockchain at our jobs. It makes sense to teach it,” Itamar Orr, a second-year student leading the student demand for crypto, tells CNBC. “It gets you a competitive advantage; it’s an extra hammer in your toolbox.”

One of the first schools to introduce cryptocurrency in course selections was NYU’s Stern School of Business. Since then, schools such as Harvard Business School and UC Berkeley’s Haas Business School have followed suit.

But a number of these courses aren’t being taught to give students investment advice.

Susan Athey, professor of the economics of technology at Stanford Graduate School of Business, tells the Economist that the program at Stanford is intended to teach the technology behind cryptocurrencies and advise students on the implications for banking and financial services as a result of bitcoin. In addition, according to Athey, the program will also examine “smart contracts,” which utilize blockchain technology and national digital currencies.

John Jacobs, executive director at Georgetown University’s McDonough School of Business, tells CNBC that blockchain technology is the newest skill set in high demand.

“Any world-class program is going to have to equip students in this field to compete,” Jacobs tells CNBC. “It’s everywhere we turn around.”

Sources: Financial Times, CNBC, Economist

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