Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
Management Education for the Future: A Case Study in
Implementing Principles of Responsible Management
Education (PRME) in Universities
Shahin Bahrami
The principles of the United Nations Global Compact have provided the
foundation for the development of the Principles for Responsible
Management Education or PRME. The PRME attempts to continuously
support improvement in education curricula used in higher education
institutions for the purpose of developing a new generation of business
leaders who will be capable of managing the complex business issues
st
alongside with sustainability issues faced in the 21 century. The existing
academic institutions highlight the importance of corporate social
responsibility, however while theoretically these concepts are embraced
by the business leaders, they have not become embedded into business
and management curricula around the world. The PRME guides and
supports business schools to modify their teaching philosophy as well as
methodology and strategy to meet the challenges of preparing future
leaders who will be able to combine sustainability thinking with business
strategies. This paper captures the essence of the PRME by delving
deeply into its guiding principles, and the framework under which it
propels higher education institutions into adapting their business curricula
to allow the integration of socially responsible management practices into
educational material. To follow through on the successes of the PRME
there will be an evaluation of how academic institutions have gone about
implementing the PRME principles and subsequent results from such
endeavors. This paper will specifically focus on two universities; one
located in Europe and the other in the United States, that as signatories
of the PRME have attempted to implement its principles within their
business curricula.
“The Principles for Responsible Management Education have the
capacity to take the case for universal values and business into
classrooms on every continent."
UN Secretary-General Ban Ki-moon
Field of Research: Management Education, Business Sustainability Education, PRME
1. Introduction
As management schools started on the road to becoming more active in integrating
sustainable business practices into educational material, the PRME was incepted by the
UN to provide guiding principles for business schools embracing the sustainable
business movement.
Dr. Shahin Bahrami, Associate Professor of Management, American University in Dubai, Email:
sbahrami@aud.edu
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
According to the document ―Inspirational Guide for the Implementation of PRME
―(2012), the combination of the timely emergence of the PRME and the interest
manifested by the universities, helped describe
an interesting observation:
management schools are welcoming this initiative and have started to incorporate the
growing trend of sustainability within business practice into their education system and
curricula. Progress in this discipline has shown to be substantial and the variety of
experiences is vast. Patterns as a result of implementation occur immediately, and as
reported by a number of universities, when the decision is to adopt sustainability as a
core tenet of a management school, it triggers change at all levels of the organization.
The case studies reported by different universities describe the challenges faced when
employing PRME, and the fact that education reformation is an evolutionary process in
relation to the adoption of the Principles.
By the launch of PRME in 2007, the growing international trends in the corporate world
were corporate social responsibility and sustainability. As a result, management schools
began incorporating these same values into their own programs. In some instances,
related values were already part of the mission statement of the school, while others
had a longstanding tradition of employing a humanistic approach to education. These
approaches were immediately applicable to the challenges in today‘s business world
and society as a whole. The problem remains how to instill such values as central
components to a school‘s mission statement and therefore be a catalyst of change
through all aspects and activities of the school. Moving from implicit to explicit is the
most important aspect of the implementation of PRME. It is not beneficial to simply just
include the Principles in a university‘s mission and vision statement. This can be an
initial advantage, but there is a long way between the theoretical acceptance and the
change in curricula; this includes methodological approaches, organizational culture,
and research efforts. New emphasis on the refocusing of priorities, an effective buy in
by all actors, and analysis of required organizational change, is how PRME helps
academia to evolve from an implicit theoretical decision to an explicit effort through all
levels of education (Inspirational Guide for the Implementation of PRME, 2012).
The Principles of the PRME initiative are usually first accepted by a few actors. There
are some revealing examples on how to transform the initial limited acceptance into an
active consensus and approval of the Principles as drivers by all internal stakeholders:
administrators, faculty, and students.
Without true conviction of the school‘s leadership, progress is nearly impossible when
implementing PRME. Leadership as a whole has the crucial role of turning a theoretical
acceptance of the Principles into a force for change in organizational and educational
values. This adaptation of a management school to place sustainability at the center of
its teaching philosophy, strategy and research cannot be accomplished without a
holistic approach. As a result, a top down strategy for new structures, incentives, and
findings cannot be provided without decisions taken by leadership. It is equally
important to achieve active buy in from faculty, which is a complex undertaking. The
major factor shown in some cases is to present and treat PRME as an inclusive and
voluntary initiative, and to establish a strategy of voluntary and incremental buy in by
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
drawing on the capabilities and work of faculty leaders. One of the most effective
strategies is to couple concepts already established in management education, such as
innovation or social entrepreneurship, with sustainability to increase faculty acceptance
(Inspirational Guide for the Implementation of PRME, 2012).
Students are also critical to the implementation process of PRME. Provided that
progress along the path of sustainability is based on a systemic approach, unleashing
the potential of students is essential. Several case studies conducted on various
institutions highlight students as the main initiators of such relevant transformative
processes towards integration of sustainability in their schools.
According to the case stories reported, many schools intend to implement an effective
change in their curricula. However, this will be an evolutionary process, and the best
way to approach it is by taking a systematic approach as opposed to just adding a
course to teach the PRME principles, but by planting sustainability approaches in every
program.
Implementation of PRME inspires not only curriculum change and new horizons for
research, but also the transformation of the organizational culture. The values and
concepts that are taught and researched are aligned with the actions of the institution
itself (Inspirational Guide for the Implementation of PRME, 2012).
All the case stories on the universities that are attempting to implement the principles for
responsible management show how PRME can affect academic strategies and actions
taken by management schools. The major points reported are as follows:
1. Change in many management schools towards sustainability is already happening.
2. The challenges to embrace PRME are not with accepting the Principles, but with the
implementation of them.
3. The priorities of the educational institutions need to be refocused, seeking buy-in
from everyone involved, that is; faculty, students, management and partners, and
coming up with the required actions that are focused on turning implicit goals into
explicit actions.
4. Within a top-down approach, both formal and informal strategies should be
considered.
5. The leadership of the school can play an important role in taking the initiative from a
theoretical acceptance of the Principles to a roadmap for affecting institutional changes.
6. Faculty acceptance and support of the Principles is critical to overall change and is
complex undertaking.
7. An effective strategy for increasing acceptance by faculty expressing sustainability
concerns is to combine sustainability education with other trendy management subjects
such as innovation or social entrepreneurship.
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
8. Unleashing students‘ potential is very important part of the equation.
9. The overall approach to a holistic curricula change is by embedding sustainability
approaches in all disciplines.
10. Implementation of PRME also facilitates the transformation of the organizational
culture of the institution itself (Inspirational Guide for the Implementation of PRME,
2012).
2. The PRME Initiative
The PRME has the capacity to serve as a framework for systemic change for business
schools and management-related institutions on the basis of three distinctive
characteristics of the initiative:
Source: http://www.unprme.org/the-6-principles/index.php
1. Continuous Improvement
Implementation of the Principles should be understood as a long-term process of
continuous performance improvement. The PRME can provide a general framework,
but it is up to leadership, faculty, and students, to engage in the process itself, and build
overall institutional support through constant feedback and collaboration.
2. A Learning Network
The PRME initiative acts as a network for learning by gathering and disseminating
information on good practices. PRME facilitates the sharing of the latest experiences
within the network of the participants and in that sense enhancing the learning process.
3. Report to Stakeholders
Any school that signs to implement PRME is expected to provide progress reports
regularly to all stakeholders. The reporting will be public in order to maintain credibility
of the initiative, and will help acknowledge those who have had successes in adopting
PRME.
In 2007, an international task force was formed to develop PRME. The task force
consisted of university presidents, deans from sixty business schools, and other
representatives of leading academic institutions.
As recommended by all academic stakeholders of the UN Global Compact, they
developed the concept of a global engagement platform which focused on Principles for
further developing academic institutions; the goal was to reach peak performance in
preparing young business professionals capable of meeting corporate world obstacles.
The initiative was first launched by the Global Compact Office at the Global Forum
"Business as an Agent of World Benefit" at Case Western Reserve University in
October 2006. Subsequently the task force developed a set of six principles to be used
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
as a platform to launch management education with concrete sustainable business
practices content.
Universities, as institutions of higher education, should be willing to implement the
following six Principles within their institutions for proper development of both current
and future leaders:
Purpose: Develop the capabilities of students to be future champions of sustainable
values for business and society and to incorporate sustainable practices into business
strategies.
Values: Embrace the principles of global social responsibility and include them in
academic activities and curricula, as suggested by international initiatives such as the
United Nations Global Compact.
Method: Create an educational environment that fosters effective learning experiences
for responsible leadership.
Research: Conduct conceptual and empirical research that enhances understanding of
the role and impact of businesses in the development of sustainable social,
environmental, and economic practices.
Partnership: Establish a dialog with business managers to increase knowledge related
to the issues faced in meeting social and environmental responsibilities.
Dialogue: Encourage, facilitate interaction and debate among educators, students,
business, government, consumers, media, stakeholders, civil society organizations, and
other interested groups on important challenges of global social responsibility and
sustainability.
Source: http://www.unprme.org/the-6-principles/index.php
3. Case Study: Toulouse Business School
Toulouse Business School (TBS) in Toulouse, France, is aspiring to be a socially
responsible European higher education institution, and as such is committed to the UN
Global Compact. TBS became a signatory of the PRME in 2008. As a result the focus
of this establishment has been on the necessary preparation for future business leaders
and decision makers of the corporate world and society as a whole. The ten principles
highlighted in the UN Global Compact are related to human rights, working conditions,
environmental protection and fight against corruption. These principles provide clear
global and local guidelines for educating socially responsible managers who seek to
establish a process of sustainable development. During the Rio +20 conference,
Toulouse Business School has signed The Commitment to Sustainable Practices of
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
Higher Education Institutions on the Occasion of the United Nations Conference on
Sustainable Development (Barzantny and Delpuech, 2013 AOM Meeting).
3.1 General initiatives and achievements
Toulouse Business School engages in sustainable business practice and social
responsibility development through active local and global participation. Installation of
such programs with local and global entities speaks to the idea of turning the implicit to
explicit, and the opportunities have the potential to generate excellent economic
innovation. The motto of the school is ‗to train pilots of change‘, which means creating
business leaders with adaptability for the ever changing and progressive business world
of tomorrow. The permanent faculty handles the coordination of social responsibility
and sustainable development aspects in teaching and research as well as in all student,
staff, and campus initiatives (Barzantny and Delpuech, 2013 AOM Meeting).
.
The programs below describe how TBS has effectively integrated both corporate
sustainability as well as ethical conduct within all aspects of its educational environment
and community among students, faculty, and stakeholders. Integrity is at the forefront
of its mission statement and students are required to sign a charter upon entering in the
program. It is a continuous process to maintain an environment ripe for innovation but
the ethical culture established at TBS will be sure to generate better corporate
sustainability with integrity from its graduating students (Barzantny and Delpuech, 2013
AOM Meeting).
1. Course work and collaboration to train responsible managers
Toulouse Business School uses projects integrated within its curricula to offer balance
and preparedness on Corporate Social Responsibility (CSR) and Sustainable
Development (SD) in a three-year Master in Management program.
There are two specialized postgraduate Masters offered, one on ―Management of SD
and climate change‖ and the other on ―Responsible Management of Territories and An
Executive Education‖ seminar also created with a focus on SD, linking higher education
with strategic thinking and innovation.
2. Creation of a Chair ‗Sustainable and Responsible Developments‘ in partnership with
Groupe La Poste.
This partnership became possible through the annual convention of SD organized on
the premise of TBS by a student association and the Office for Sustainable
Development. Founded in 2006 by students at TBS, the partnership connected all
parties interested in making CSR and SD issues at the forefront of business and
business education. Such groups included students, the responsible citizen, and
stakeholder involvement.
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
3. Research on CSR and SD issues are taken on by various faculty members of TBS.
Some of the research subjects are based on long-term problems in relation to
renewable energies. Some examples of these projects involved the conjunction of CSR
and SD with fossil energy, the implementation of climate policies and economic impact,
the emergence of renewable energies as a whole.
4. Launch of a training cycle for high level managers and executives - Toulouse
Business School cooperates with 5 higher education establishments in the MidiPyrenees region. Collectively they offer training in collaboration with other national
partners. This program proposed a learning experience for collaboration on SD issues
faced by executives and managers, local administrators, and civil servants as well as
representatives of associations and unions.
5. Creation of a professional association on CSR and environmental responsibility of the
firm – The professional association was led by TBS faculty in order to promote critical
and constructive thinking and action on CSR in the Midi-Pyrénées region in both the
academia and business world. This association provides a foundation for practicing
CSR by businesses taught in higher education. It also provides a medium for the
exchange of information, ideas, and offers practical advice for enhancing the overall
performance.
6. Anti-Corruption to develop Corporate Sustainability with Integrity in Higher Business
and Management Education
Ethical concerns have been raised in the educational process. In continuation with the
10th principle of the UN Global Compact which speaks on anti-corruption to develop
integrity within corporate sustainability, Toulouse Business School has steadily raised
ethical concerns in all its activities and educational practice. To ensure campus wide
ethics, students are asked to sign a charter in affiliation with the school to emphasize
the importance of adhering to business integrity and ethical practice even as a first year
business student. The document outlines what it means to be an ethical business
leader, the rejection of plagiarism, and their responsibilities both as an individual and as
part of the academic community.
At TBS there exists a campus-wide disciplinary committee with faculty, staff and student
representatives in case of need to judge ethical wrongdoings. This refers back to the
ethics charter the students sign when first entering the program (Barzantny and
Delpuech, 2013 AOM Meeting).
4. Case Study: Graziadio School of Business and Management
The Seer Lens: Application of the PRME Principles
The Graziadio School of Business and Management, Pepperdine University located in
Malibu, California, Launched a program in fall 2010, called Socially, Environmentally,
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
and Ethically Responsible (SEER). The SEER program awards certificate within the fulltime MBA program (Inspirational Guide for the Implementation of PRME, 2012).
.
4.1 General Initiatives and Achievements
As a signatory to the PRME, the Graziadio School has developed a certificate program
to enhance its commitment to the Principles, called certificate in Socially,
Environmentally, and Ethically Responsible (SEER) business practice. The unique
curriculum offers a dynamic and personalized approach to an MBA program common to
the many options available to the student. The framework of the certificate program
allows for a more concentrated study in business ethics; the SEER Lens integrates
corporate citizenship, financial strength, product/service quality, and environmental
stewardship. The concept is rooted in the macro-values model of Crooke (2008). The
SEER Lens is aligned with the United Nations Global Compact strategic initiative that
embodies human rights, labor, environment, and anti-corruption while simultaneously
supporting values associated with the PRME initiative. The design of the curriculum
incorporated the following:
Using the Beyond Grey Principles (Aspen Institute) assures that at least 50% of either
social-environmental and/or ethical content in embedded into the SEER curriculum.
(The Beyond Grey Pinstripes ranking assesses graduate business school curriculum,
on a global scale). To be consistent within the structure of the program in relation to
SEER Lens, it is crucial that all activities and coursework embody the combination of at
least two of these principles: corporate citizenship, financial strength, product/service
quality and environmental stewardship (Inspirational Guide for the Implementation of
PRME, 2012).
.
The curriculum would feature one course from each of the following departments in
order to create an inclusive program. The five departments at the Business School each
consists of two disciplines: accounting/finance, economics/business law,
strategy/information systems, organizational behavior/organization theory, and
marketing/decision sciences.
Values-centered leadership, the mission of the certificate program, needs to be at the
core of all the course work and teachings. The certificate itself requires eight units of
coursework, six units of elective choices, and required capstone course (Responsible
Business Practice). In addition there is a service requirement in which students take on
projects or become members of a planning committee to name a few. All courses are
seven weeks long and meet four hours each week. The semester is divided into two,
seven week sessions. The split semester design in both fall and spring allows
opportunities for students to take numerous electives (Inspirational Guide for the
Implementation of PRME, 2012).
Students are encouraged to participate in various roles of student governance within the
shaping of the program. This enhances students‘ leadership skills to be applied to life
outside of the classroom. In fact, the interest raised about this type of certificate
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
program came from a student.
Student opinion played a crucial role in the
establishment of the program and much of how it came to be critical in the electives
offered and the overall structure. A number of business leaders from various
organizations committed to sustainability have been engaged in the role of guest
speakers in the classroom and symposia, and, in some cases, have taken an adjunct
teaching position in the certificate program (Inspirational Guide for the Implementation
of PRME, 2012).
The support generated for this program has much to do with the mission statement of
the Business School, which provided a significant influence in securing approval for the
SEER certificate. The faculty by an overwhelming margin supported the proposal. The
dean and associate dean also were in support, in fact, they were the primary force
behind the program as a reflection of their commitment to the School‘s mission. The
School‘s five year Strategic Initiative identifies values-centered leadership and
responsible business practice as primary goals. The Strategic Initiative reflects
continued development of programs related to SEER as well as a fund-raising
campaign for the purpose of building a center for responsible business practice. As
further evidence of administrative support, the dean currently holds position on the
AACSB Sustainability Conference Board (Inspirational Guide for the Implementation of
PRME, 2012).
The advice to those institutions attempting to offer a certificate or program incorporating
CSR and environmental values into MBA curriculum is to make sure that these
principles are used alongside with quality products and service. In the highly
competitive business environment quality product or service is critical to the success or
even survival of a business. Fortunately as more companies begin to seriously use this
understanding to create a competitive advantage in their respective industry, educators
will be required to make these principles an integral part of an MBA program.
4.2 Some Reported Results
The enrollment in the SEER program has been steadily increasing and it is expected
that the numbers go up as the program becomes more known to the interested parties
in the region. The SEER Class of 2011established a LinkedIn forum to encourage
involvement with their fellow students. Students who complete the SEER certificate
provide feedback which in turn enhances the chances for the program‘s continuation.
The feedback collected has been most encouraging and reinforced the mission of
SEER; to train MBA students to comprehend sustainability in a way that makes the
SEER values an integral part of the value chain- thus creating a sustainable competitive
advantage for the business as well as the society. To evaluate the process further, the
faculty members leading the program have created a steering committee to include a
member of the first graduating class along with a senior executive from a southern
California firm whose organization is committed to sustainable social and environmental
practices. They review strategy and curriculum and provide feedback on how to make
necessary improvements. The committee offered a number of ways to make curricular
changes based on data gathered throughout the year. These changes included
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Proceedings of 9th International Business and Social Science Research Conference
6 - 8 January, 2014, Novotel World Trade Centre, Dubai, UAE, ISBN: 978-1-922069-41-2
reducing the number of electives, as well as forming a SEER committee comprised of
three first year students. The committee worked with faculty and administration in
bringing in the student voice to further advance the assessment of the program (Micheal
Crooke, 2012).
5. Conclusion
During a symposium held in August 2013 at the Academy of Management 2013 annual
meeting in Orlando, Florida a number of representatives from both the participating
universities and the PRME coordinating office addressed the progress and challenges
reported by the institutions implementing PRME. The following conclusions and action
items were reached by the symposium participants: Based on all the stories and case
studies reported the implementation of PRME in universities should commence as a
top-down approach. Culture of the university needs to be taken into consideration, for
example, the participative style of leadership and the freedom of faculty to accept or
reject curriculum changes. It was recommended that in institutions where there are
many voices in the decision making process, it would be beneficial to start the
implementation as an informal process and gradually move into a formal agenda later.
Multiple stake holders such as students, faculty, and business partners need to be part
of the dialogue for implementation. Lastly, the effect of accreditation bodies, such as
AACSB, can be a tremendously positive force encouraging the institution seeking
accreditation to develop a serious agenda for the implementation of PRME (Academy of
Management Annual Meeting, 2013).
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