The landscape of business education is undergoing significant scrutiny as leaders within the field reassess the values imparted to future business professionals. Recent surveys indicate a growing demand among students for educational experiences that align with their personal values and societal expectations. A 2019 Bates/Gallup poll illustrated that 80% of college graduates seek a sense of purpose in their professional lives. Furthermore, a 2023 survey revealed that 50% of Generation Z and millennial employees in the U.K. and U.S. have left jobs due to misalignment with corporate values.
This shift in expectations is particularly evident among current business school students. Many from Generation Z are urging institutions to integrate relevant content addressing issues such as diversity, inclusion, sustainability, and poverty into their curricula. According to the Financial Times, this generation may be the most demanding cohort in the history of business education. In response to these evolving needs, educators are reconsidering the effectiveness of traditional business programs.
The emphasis on character development is gaining traction as a foundational component of business education. Historically, studies have indicated that business school applicants often display higher levels of the “dark triad” traits—narcissism, psychopathy, and Machiavellianism—compared to peers in other fields. These traits can lead to unethical behavior and a focus on self-interest, which persists even after graduation. Research involving 9,900 U.S. publicly listed firms found that companies managed by business school graduates reduced employee wages by 6% over five years, while firms led by managers without business degrees tended to share profits more equitably with workers. This difference highlights the impact of educational values on managerial practices.
In light of these findings, many are questioning the overall value of the MBA. Some students express concerns over the program’s rigor and relevance, opting to leverage their degree primarily for networking opportunities rather than for substantive learning experiences. The advent of generative artificial intelligence further complicates this landscape, as it poses a risk of diminishing the quality of education by performing tasks that students traditionally engage with.
The role of business leaders in society is crucial but often lacks public trust. Only 16% of Americans report having a “great deal” or “quite a lot” of confidence in corporations. Moreover, 51% of Americans aged 18 to 29 view capitalism negatively. Educators are now challenged to cultivate leaders who perceive business not merely as a profit-generating entity but as a mechanism to serve societal needs.
Prominent figures in academia, including Harry Lewis and Derek Bok, advocate for a return to the original mission of higher education, emphasizing character formation alongside ethical considerations. Traditional ethics courses in business schools have often struggled to make a meaningful impact. Innovations are emerging, with some institutions focusing on character development as a core element of their curricula. This approach seeks to create a moral culture that influences not only academic content but also the entire educational environment, including extracurricular activities and faculty engagement.
According to Bill Damon, a leading scholar at Stanford University, faculty members should foster conditions that allow students to explore their sense of purpose. This relational approach to teaching engages students on a personal level, challenging them to reflect on the type of leaders they aspire to be and the legacy they wish to create. This shift marks a return to the foundational principles of early business education, which aimed to prepare managers for higher purposes in commerce.
Examples of innovative programs are emerging, such as the Institute for Social Concerns at Notre Dame University and the Center for Purposeful Work at Bates College. These initiatives reflect a growing movement to reshape business education, encouraging students to pursue meaningful career paths. Courses like “Designing Your Life” at Stanford University and “Management as a Calling” at the University of Michigan exemplify this trend.
With a clear demand from students for a more purpose-driven education, the momentum is building for business schools to adapt and respond to these calls for change. As the focus shifts towards character and ethical leadership, the foundations of business education may be poised for a significant transformation.
