Business students will sell you the rope to hang them with
A candid look at an education in commerce
JACQUES MARCOUX, VOLUNTEER STAFF
I.H. Asper School of Business students are often reminded by their faculty administration, much like all other faculties on campus, that they are the “leaders of tomorrow.” However, if you consider that for all intents and purposes it is money that makes this world go round, there might be more truth to the administration’s clichéd statement than most think.
There is an old saying that goes: “If you truly want to make change don’t get into politics, get into business.” A quick glance around us would indicate that this maxim holds true. In fact, we don’t need to look very far to see the effects that our own I.H. Asper School of Business alumni have had on Canada’s economical landscape. Charlie Spiring, founder of Wellington West Capital, runs one of the top financial firms in Canada, with its head office based in downtown Winnipeg. William Moir, executive vice-president of marketing for Tim Hortons, has had a tremendous impact on the coffee-drinking habits of most Canadians. And, of course, let’s not forget the legacy of Israel Asper, founder of CanWest Global.
Given the enormous influence business people have on our lives, we need to ask ourselves: are business schools grooming our future entrepreneurs in a way that reflects the vital role they will play in shaping our communities and upholding the public’s interest?
To the Asper School’s credit, the administration vigilantly enforces academic integrity. So much is this enforced that, as a form of deterrence, a list of all student offenders for the current year, represented by a serial number, are posted just above the main floor for all students to view. But the onus of ethical behaviour cannot only fall on the shoulders of students; the entire education process must take responsibility, as well.
Set foot in Drake, the Asper faculty building, and one of the first things you will notice are the prominently displayed awards recognizing some of the most successful business leaders in the world, some literally in trophy cases. Up along the stairwell are a series of plaques showcasing the International Distinguished Entrepreneur Award, which has been awarded to some of the biggest names in business, including Richard Branson, owner of Virgin Atlantic, and Howard Schultz, owner of Starbucks Coffee Company. Those responsible for awarding the prize to the “business executive who has achieved outstanding entrepreneurial success and who had made an exemplary contribution to economic life” are “the Associates,” a collection of Manitoba’s premier business leaders. Their objective is simple and noble — to fundraise for the Asper School of Business in an effort to make up for the shortfalls of public funding.
Despite the well-meaning intentions of both “the Associates” and the faculty administration, there is one decisive problem: the winners of these awards are in some cases either white collar crooks or have demonstrated instances of unethical business activities. The most recognizable name is Martha Stewart, who was accused of insider trading and convicted for lying under oath. But what few people know is that Stewart, prior to the creation of her Omnimedia Inc. empire, was also suspected of insider-trading as a stockbroker in the mid-’70s, a clear indication of her character. Another honoured individual is The Body Shop creator, Anita Roddick. She founded her company on stated values such as environmental responsibility and animal rights, both keystone principals that lead socially responsible consumers to gravitate towards her products. As it turned out, Roddick’s company argued that they could claim that they were animal friendly, since it was only the suppliers of the ingredients in their final products that were tested on animals, not their actual shelf product. Using such pragmatics to misrepresent to the public indicates a complete and utter lack of respect for the spirit of free enterprise — and these are the individuals commerce students hold in high esteem, unaware, at times, of their shady backgrounds. If the Asper administration is as resolute on ethical behaviour as they claim, they would take the necessary steps by revoking awards from such shameless individuals. Such an action would set a strong positive precedent for students.
The fact that these individuals remain in faculty folklore indicates that most people have a high degree of tolerance regarding white collar crime. If a person is caught driving under the influence of alcohol, his or her vehicle is impounded, their license is revoked for the duration of a year, and heavy fines are applied. However, if a millionaire CEO skims a few million dollars off the top and deceitfully falsifies the books, the penalties, as history has shown, are hardly proportionate to the crime. This sense of tolerance and forgiveness from the general public towards white collar crime, exemplified in the case of Martha Stewart’s dazzling comeback from prison, has unfortunately entrenched itself in the daily mindset of business schools nationwide. Had Conrad Black been awarded the distinction from “the Associates” prior to his recent scandal, would it have been revoked after the fact? I have my doubts. We need to consider: what precedent are we setting for students by glorifying these questionable leaders? The question needs to be asked, whether or not in the future we will honour individuals solely on the basis of economic performance, or rather the means by which they rose to power. Given the current criteria, the doped Canadian sprinter Ben Johnson would be a likely candidate for an
Companies are admired for their ruthless ability to generate profit — but at what expense?
award, were this a sports hall-of-fame.
To further my point, courses within the business school often use companies such as Wal-Mart or Nike as case studies, since they are deemed to be leaders within their respective industries. They are admired for their ruthless ability to generate profit — but at what expense? By avoiding the inconvenient discussions about the repercussions of business activities, students are indirectly internalizing that reducing costs and increasing profit margins is the only result that matters. Have students ever been told that by outsourcing a company’s production to Bangladesh, companies perpetuate vicious cycles of poverty and environmental harm? There is never any regard or discussion about the unnecessary environmental impact that producing non-vital commodities has on our ecosystems. In fact, it’s the opposite — consumerism is encouraged wholeheartedly. That’s just the name of the game. If an Asper alumnus were to make millions of dollars by manufacturing Paris Hilton T-shirts, he would likely be exemplified as a successful business entrepreneur in the eyes of the faculty. Is this socially responsible?
Granted, the Asper School of Business is neither a social studies nor an environmental studies program; but given the indisputable interdependence between industry, community and environment, the one-sided story business students are taught in classrooms is grooming alarmingly short-sighted individuals. Of the 126 credit hours required for the completion of a bachelor of commerce, only three credit hours are devoted to an ethics course, which does not necessarily have to be business-related. This is not a promising situation. Given the recent international intervention by governments pertaining to industry carbon emissions, it seems logical that business student would have some mandatory exposure to environmental studies.
One of the most thought-provoking courses offered in Asper is Contemporary Social Issues in Business, which shows the seldom seen and often avoided sinister side of business activity. These issues are real and are increasingly problematic in our daily lives. Business students need to be made more aware of this reality. Finally, there are but a handful of courses that focus on in-depth analyses of the intricate differences in managing not-for-profit organizations, or how both the private and the public sector can be integrated harmoniously, rather than working against each other. These are critical skills that any leader of tomorrow should not be without.
The business school’s student newspaper is entitled the Bottom Line. Even in jest the undertones within the business school and, by extension, the business community are clear: outcomes are all that matter. Given the current inadequacies in the education business students receive, it is unlikely that unethical business practice will relent anytime soon. Perhaps this would not be the case if business schools did not create an atmosphere that cultivates such disconnect between profit and consequence.
Jacques Marcoux is a fourth-year commerce student.
