Ambition is AMBA’s thought leadership magazine, offering regular insights into the challenges and trends that matter most in global management education
Ambiti n The monthly magazine of the Association of MBAs (AMBA) BE IN BRILLIANT COMPANY
Issue 71 MARCH/APRIL 2024
Made in Italy SDA Bocconi dean Stefano Caselli on the outlook for management education
NATURAL ADVANTAGE Nyenrode discusses the need for a circular economy
ESPAE’S HALLOWED HUB Promoting connections between entrepreneurs and society stakeholders
LATEST AMBA A&E SCHOOLS REPORT New study tracks MBA student trends around the world
Latin America Conference 2024 AMBA & BGA 25-27 September 2024 | Rio de Janeiro, Brazil This unmissable gathering of business school deans and directors from across Latin America and beyond will address the issues that matter most in global business education Join AMBA & BGA in beautiful Rio de Janeiro to share experiences, facilitate debate and inspire collaboration Learn more and book your place at:
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Issue 71 | MARCH/APRIL 2024
NEWS & INS IGHT
REGULARS
07 | EDI TOR’ S LET TER Introducing an issue full of international flavour, with insights from schools based in the US, Europe and Latin America 46 | SPOTLIGHT ON SCHOOLS An overview of the recently accredited UCU Business School based in Montevideo, Uruguay 50 | VIEW FROM THE TOP As he looks forward to the AMBA & BGA Global Conference in May, CEO Andrew Main Wilson stresses the value of international networking
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08 | BUSINESS BRIEFING A round-up of network news and research 20 | NAVIGATING THE NEW WAVE OF TECHNOLOGY A recent AMBA & BGA roundtable shared current practices, plans and challenges around the use of AI 30 | PROGRESS REPORT The latest MBA application and enrolment trends from AMBA’s annual study 40 | FROM STRENGTH TO STRENGTH Manchester Metropolitan University Business School’s dean discusses its AMBA-award-winning innovation strategy
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OPINION
48 | COLLABORATION Should business school leaders shun their competitors or seek to learn from them and co-operate for mutual advantage?
Ambition | MARCH/APRIL 2024 | 3
RESEARCH AND INSIGHT: STAY AHEAD OF THE TRENDS IN BUSINESS EDUCATION
With unparalleled access to many of the world’s leading business schools, AMBA & BGA’s Research and Insight Centre offers powerful insight into the issues that matter most in global business education
Recent AMBA & BGA research has tackled: · The metaverse · Climate change · Digital transformation · Student experience and satisfaction · Graduate career paths and aspirations
The annual AMBA Application and Enrolment Report , meanwhile, offers a crucial overview of the MBA market’s health among AMBA-accredited business schools, allowing for benchmarking
AMBA & BGA is always looking to collaborate with business schools and corporate partners to enhance our research offerings. If you
are interested in partnering on a project, or joining one of our roundtables, please contact: research@amba-bga.com
Issue 71 | MARCH/APRIL 2024
FEATURES
26 | IMPACTFUL ALLIANCES How Ecuador’s Espae Graduate School of Management is working to establish connections between entrepreneurs and other stakeholders in the local ecosystem
12 | IN CONVERSATION WITH… STEFANO CASELLI In the first of a new series of interviews with leading schools, we hear from the dean of SDA Bocconi School of Management in Milan
36 | MIND THE GAP Esade’s Anna Ginès i Fabrellas reports on a new project designed to help stamp out gender discrimination in the workplace and foster equality for female professionals
42 | ACQUIRING A TASTE FOR BUSINESS OWNERSHIP Brian O’Connor and Mark Agnew from
Chicago Booth School of Business consider the rise of entrepreneurship through acquisition (ETA)
16 | THE NATURE OF BUSINESS Nyenrode Business University professor Tineke Lambooy explains why students need to consider business practices in relation to the Earth’s geophysical processes
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LATAM CAPACITY-BUILDING WORKSHOP
TUESDAY 30 APRIL 2024 | 16:00-18:00 GMT | ONLINE (ZOOM) | HOSTED IN SPANISH
Join AMBA & BGA for our upcoming Capacity Building Workshops in Manchester, UK. Attendance is FREE for our in-person workshop, but space is limited to 40 . This workshop will involve business school leaders and professionals in exploring the uses and challenges of different platforms, and how to integrate them effectively into the curriculum to enhance student learning. Scan the QR code to register for your complimentary spot. AMBA & BGA invites you to join BGA’s ninth capacity-building workshop focused on Latin America. This online event will delve into strategies and best practices in relation to faculty recruitment and development. Attendees will also explore the factors required to generate high-quality and impactful research within business schools Scan the QR code to register and secure your place FACULTY RECRUITMENT AND DEVELOPMENT IN LATIN AMERICA: INTEGRATING PRACTICE AND ACADEMIA
EDITOR’S LETTER
Beyond BORDERS
EDITORIAL Head of editorial Colette Doyle c.doyle@amba-bga.com Content editor Tim Banerjee Dhoul t.dhoul@amba-bga.com
AMBA’s global reach means business schools all over the world can benefit from each other’s fields of expertise
T
Art editor Sam Price Sub-editor Heather Ford
here’s an international flavour to this month’s issue; as CEO Andrew Main Wilson notes in his column, AMBA now has member schools in no fewer than 85 countries. Our review of the association’s latest study of application and enrolment trends, meanwhile, covers more than 250 AMBA-accredited business schools located across nine different regions. We start in Italy with our cover story, an interview with Stefano Caselli, the dean of SDA Bocconi School of Management in Milan. He talks about the importance of good governance and those skills required for MBA graduates to become efficient and productive leaders – identifying humility, respect and nimbleness as being among the primary ones. Also representing Continental Europe is Anna Ginès i Fabrellas from Esade in Barcelona, who introduces the Equal4Europe consortium, which is helping women in academia deal with the ‘leaky pipeline’ phenomenon that can be a barrier to progression in their careers. Then we’re off to Latin America, where Ecuador’s Espae Graduate School of Management relates how a global alliance was forged to support a social enterprise initiative that offers guidance, mentorship and training to budding entrepreneurs. Next up it’s the turn of North America; our feature submitted by Chicago Booth looks at the fascinating phenomenon that is ETA, or entrepreneurship through acquisition. This approach differs from the better known and more common start-up model because it entails buying a company that already exists. The authors detail how this idea can benefit both MBA graduate careers and national economies. Enjoy the issue – we’ll be back next month with a roundtable exclusively comprised of female deans debating the issues of the day that matter to the higher education sector; ITESO University Business School elaborates on the concept of employee ownership in Mexico; and French institution Neoma explains how generative artificial intelligence is revolutionising the educational experience.
Insight, content and PR manager Ellen Buchan e.buchan@amba-bga.com CORPORATE Commercial relations director Max Braithwaite m.braithwaite@amba-bga.com
Head of marketing and communications Leonora Clement
Senior marketing executive Edward Holmes
Head of IT and data management Jack Villanueva
Head of events Carolyn Armsby
HR and employer relations manager Aarti Bhasin Finance and commercial director Catherine Walker
Colette Doyle , Editor, Ambition
THIS MONTH’S CONTRIBUTORS
Chief executive officer Andrew Main Wilson
Executive assistant to the CEO Amy Youngs a.youngs@amba-bga.com ACCREDITATION ENQUIRIES accreditation@amba-bga.com
MARK AGNEW
ADRIANA AMAYA
STEFANO CASELLI
ANNA GINÈS I FABRELLAS
HANNAH HOLMES
TINEKE LAMBOOY
STEPHANIE MULLINS-WILES
BRIAN O’CONNOR
ANDREA SAMANIEGO
MARCOS SOTO
Copyright 2024 by Association of MBAs and Business Graduates Association ISSN 2631-6382 All rights reserved. Material may not be reproduced without the permission of the publisher. While we take care to ensure that editorial is independent, accurate, objective and relevant for our readers, AMBA accepts no responsibility for reader dissatisfaction rising from the content of this publication. The opinions expressed and advice given are the views of individual commentators and do not necessarily represent the views of AMBA. Whenever an article in this publication is placed with the financial support of an advertiser, partner or sponsor, it will be marked as such. AMBA makes every opportunity to credit photographers but we cannot guarantee every published use of an image will have the contributor’s name. If you believe we have omitted a credit for your image, please email the editor.
Ambiti n
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BUSINESS BRIEFING
All the latest updates from across AMBA’s global network
Meeting the needs of a changing workforce, promoting financial inclusion for informal workers and a thought‑provoking look at how consumers respond when green products go wrong all feature in our latest selection of news and research. Compiled by Tim Banerjee Dhoul , Ellen Buchan and Colette Doyle
A SHORTER ROUTE TO AN MBA FOR MiM GRADUATES OPENS UP AT LBS
SCHOOL : London Business School COUNTRY : UK
will tackle the changing role of business and society. In so doing, it will consider the application of financial economic theory to sustainability and explore how leaders can deliver for people, planet and profit. “We are particularly excited about the opportunities the innovative core courses will give students to apply their learning to contemporary business issues,” commented Hastie. The one-year MBA’s first cohort is due to commence classes in August 2025. In another move designed to meet changing trends in the market for postgraduate business education, LBS recently announced the launch of LBS Online, a new home for its virtual offerings. “LBS Online will widen access to our school’s world-class teaching through a new online-only course portfolio tailored to individuals that want the richness and quality of our faculty’s teaching, anywhere in the world,” expounded director of online learning and academic services at LBS Jacob Gage. TBD
London Business School (LBS) is launching a new one-year MBA for candidates who graduated three or more years ago with a master’s in management (MiM) degree from a reputable institution. “The new programme is an exciting way to meet the demand from top-quality master’s in management graduates for a one-year programme, in a way that is complementary to our flagship two-year MBA and that maintains the world-class LBS learning experience,” stated LBS associate dean for degree education Graham Hastie. As well as meeting the MiM and work experience requirements, one-year MBA candidates must undertake a pre‑programme to ensure a grounding in core concepts. At the start of their degree, they will then complete a set of short courses to further refresh their knowledge of key topics and their application to industry. These courses focus on business practices and challenges that are likely to have evolved since students’ prior studies. For example, one course
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MARCH/APRIL 2024
NEWS & INSIGHT
IAE Business School has launched a free training programme designed specifically to support and upskill Hispanic and Latino-American entrepreneurs in the US. “To accelerate the projects of Hispanic-American entrepreneurs and make them attractive for financing, it is key that the entrepreneurial ecosystem and the skills and abilities of Latino talent are developed,” explained Silvia Torres Carbonell, director of the new programme and academic director at IAE Business School’s entrepreneurship centre. The potential market is both vast and influential. If Latinos living in the US were an independent country, its GDP would have been $3.2 trillion in 2021, according to a 2023 report from the University of California, Los Angeles and the California Lutheran University. This would have made it the world’s fifth-largest economy by GDP, behind the US, China, Germany and Japan and ahead of India and the UK. Yet, a 2021 report from Bain and Company found that less than one per cent of the capital invested by US venture capital funds and publicly traded companies was in Latino-owned companies. The programme, entitled Naves USA (or ‘USA ships’), is the product of an alliance between IAE’s entrepreneurship centre and Emprender América, a company that aims to generate spaces for the training, support and development of Hispanic-American entrepreneurs. Its first edition will focus on Florida residents and runs between March and June. Topics that include business models, value proposition, commercial management, leadership and legal aspects will be covered across eight thematic blocks and 18 modules delivered online in Spanish. There will also be a business plan competition at the programme’s end, with an in-person final to be held in Miami. TBD FREE INITIATIVE SEEKS TO FUEL PROSPECTS AMONG OVERLOOKED US DEMOGRAPHIC SCHOOL : IAE Business School, Austral University COUNTRY : Argentina
To give informal workers more equal access to financial services, regardless of their background, DLabs at the Indian School of Business (ISB) has launched the Build for Billions start-up accelerator programme in partnership with the Reserve Bank Innovation Hub (RBIH) and Union Bank of India. India’s informal sector accounts for 90 per cent of its workforce and 50 per cent of its national income, according to an estimate from the country’s Statistical Commission. Those working in this sector of the economy are said to consist of gig workers, migrant workers, domestic workers, street vendors, carpenters, plumbers, electricians and construction labourers. These workers, as well as the informal firms that employ them, do not pay tax and tend to have difficulties in relation to the use of financial services, contributing to stagnated economic growth. On an individual level, the challenges for informal workers are myriad and include a lack of regular income, limited access to credit and fewer social security safety nets. In response, the new DLabs programme is prioritising support for enterprises that are working to alleviate these issues. The 50-day, equity-free accelerator offers mentorship, resources, networking and the chance to pitch to banks and investors. Bhagwan Chowdhry, faculty director at I-Venture@ISB, under the aegis of which DLabs operates, said: “A skilled labour force is the backbone of building a robust economy. Building and supporting finance infrastructure that can assist in the development of such a workforce should be our top priority.” RBIH CEO Rajesh Bansal further explained that the accelerator programme was “aimed at supporting visionary fintech start-ups addressing challenges faced by gig workers, migrant workers, domestic workers and others in the informal sector. This initiative holds the promise of bringing forth solutions that contribute to a more inclusive and robust financial ecosystem.” EB IMPROVING FINANCIAL INCLUSION FOR THE INFORMAL ECONOMY SCHOOL : Indian School of Business COUNTRY : India
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Not only are consumers increasingly on the look-out for greener products, but they are also more forgiving about these products’ failings than they would be for products that lack a stated sustainability benefit, according to research from UCD Michael Smurfit Graduate Business School. Over the past five years, there has been a 71 per cent rise in the search for sustainable goods globally, according to the Economist Intelligence Unit. As such, these products can now be found in almost any area, from plant- based laundry detergents to fashion items made out of biomaterials. Smurfit School assistant marketing professor Anshu Suri, together with researchers at HEC Montréal and Ted Rogers School of management, wanted to know what happened when these products didn’t live up to expectations. To do this, they conducted eight controlled experiments and empirical field analysis to assess consumers’ willingness to write negative reviews and their tendency to ask for refunds instead of replacements when things go wrong. They found that consumers react less negatively when green products fail than they do when a conventional one comes up short. “Consumers don’t overlook shortcomings of green products, but they are more forgiving, perceiving their restraint from negative feedback as a form of support for the environment,” explained Suri. “They believe they are being more pro-social, as negative reaction may harm the success of a product that benefits the environment and society.” The study, published in the Journal of the Academy of Marketing Science , offers clear lessons for manufacturers of both environmentally friendly and conventional products. However, it’s also important that green product suppliers do not take advantage of this behaviour. To be genuinely kinder towards the planet, the over-consumption of materials caused by the need to replace items that fail or have a short lifecycle must be quelled. EB HOW CONSUMERS MAKE MORE ALLOWANCES FOR PRODUCTS WITH PURPOSE SCHOOL : UCD Michael Smurfit Graduate Business School University College Dublin COUNTRY : Ireland
Singapore Management University (SMU) – home to the Lee Kong Chian School of Business – has launched the SMU Urban Institute (UI), a new research institute dedicated to multi and interdisciplinary research on cities in Asia. SMU UI will look beyond the development of infrastructure to consider the socio-cultural aspects of urbanisation and the balance between urban growth and sustainability. The institute was inaugurated by Sim Ann, senior minister of state for foreign affairs and national development, who remarked: “In the early days of our independence, Singapore experienced acute urban challenges, including overcrowding, slums, traffic congestion, environmental pollution, floods and water shortages. These challenges remain pressing in many cities around the world even today. “SMU’s Urban Institute will play an important role in promoting the exchange of experience and research between Singapore and our neighbours in Asia and in helping policymakers and practitioners create better living environments for all.” Helmed by SMU associate professor of geography Orlando Woods, SMU UI is the first research institute in Southeast Asia that aims to speak to the plethora of challenges facing the region’s cities, from the heart of urban Asia. It seeks to address the sensory, socio-cultural and economic realities of living in a city, the inequalities arising from wealth accumulation and how infrastructure, in terms of buildings, policy and regulation, might limit or enable the growth of urban centres. Commenting on the launch, SMU president Lily Kong said: “The institute’s establishment as a university-level entity signals our strong intention to extend beyond the confines of single disciplines and to forge collaborative interdisciplinary research.” She continued: “Our investment in establishing UI cannot be overstated; it is about undertaking deep, rigorous research. But more than that, it is about laying the groundwork for liveable, resilient and inclusive cities in Asia. As cities grow at an unprecedented pace, the transformative potential of this new institution becomes even more pronounced.” CD NEW INSTITUTE TO FOCUS ON THE STUDY OF ASIAN CITIES SCHOOL : Lee Kong Chian School of Business Singapore Management University COUNTRY : Singapore
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NEWS & INSIGHT
BESPOKE APPROACHES WILL BE NEEDED TO ENGAGE A MODERN WORKFORCE IN FLUX SCHOOL : Henley Business School, University of Reading COUNTRY : UK
To attract and retain talent across the full spectrum of desires and attitudes towards work among today’s employees, organisations need to be more flexible in their approach, suggests a new Henley Business School report. The Omniployment Era outlines the need for employers to recognise that rigid HR structures restricting what can be offered to employees, for example in relation to career progression or flexible working, are no longer effective. Based on a survey of 3,000 private-sector employees, it identifies six distinct ‘segments’ in the UK workforce and considers what attracts and retains them. “Omniployment might be a new term, but the idea is not – heterogeneity in the labour market existed long before the pandemic,” explained Henley Business School director of flexible work Rita Fontinha, who led the study with James Walker, pro-dean of academic resources at the school. “However, our data-driven focus offers a fresh perspective, allowing us to characterise the shift, post-Covid, by quantifying it to detail what’s happening now between different and diverse groups in the workforce.” Fontinha continued: “It is crucial that business leaders wake up to the omniployment era and take steps to change the one-size-fits-all approach of
the past. If they don’t, it’s clear that employees in sectors with a high demand for talent will feel empowered to look elsewhere.” Among the six groups identified, ‘work-life balance advocates’ are the largest in number and are said to represent 39 per cent of the workforce. The other groups are ‘the socially conscious’, said to represent 15 per cent of employees; ‘lone rangers’, accounting for 14 per cent; ‘salary-driven weekend workers’, representing 13 per cent; ‘employee advocates’, who make up 10 per cent; and lastly ‘employee satisfaction enthusiasts’, also representing 10 per cent of the workforce. However, 72 per cent of all workers are said to seek a good work-life balance, a sentiment that spans these segments. This makes the need to offer employees flexible working key among the study’s recommendations, alongside showing greater transparency in company communications and building a workplace culture built around heterogeneity. TBD
SHARE YOUR NEWS AND RESEARCH UPDATES by emailing AMBA & BGA’s content editor Tim Banerjee Dhoul at t.dhoul@amba-bga.com
Ambition | MARCH/APRIL 2024 | 11
Milan’s SDA Bocconi School of Management recently claimed its spot among the top three in the latest Financial Times global business school rankings. In the first of a new series of interviews with leading schools, Ambition editor Colette Doyle speaks to dean Stefano Caselli about how the finance sector can contribute to sustainable growth, what Italy has to offer the world and his optimism for the future In conversation with… Stefano Caselli
Tell us a little bit about your background and how you came to be dean of Bocconi “Looking at my career path, I would say that I have always had two great areas of focus, or two great passions, if you prefer. On the one hand, I have worked as a researcher within the banking system – a sector that I am something of an expert on – with the aim of studying the relationship between the financial and corporate systems and how the finance sector can contribute to sustainable growth. Or, to use a term more in keeping with the zeitgeist , how it can ‘generate impact’. “On the other hand, you have university management, comprising programmes, international initiatives and the academic offer as a whole. I think that the management of higher education institutions is one of the fundamental ways in which we can impact our society. In both cases, I have always considered the international dimension an essential component of dialogue and growth. These are my two different ‘souls’ that have allowed me to play a variety of roles both within Bocconi University and within some large, international academic networks.” What have been the highlights of your career so far? “On the academic side of things I gained tenure as a young scholar (in 2002 as an associate and in 2007 as a full professor) and then received the recognition of a permanent, endowed chairship in long-term investment and absolute return at Bocconi University in 2019. From 2012 to 2022 I was vice-rector for international affairs at Bocconi.
“That was an exciting experience and the fact it lasted for 10 years gave me the opportunity to contribute to the development of the university and to the design of numerous double-degree courses. Above all, though, I was delighted to be able to contribute to the growth of a number of international networks. These include CEMS (global alliance in management education) where I held numerous roles, as well as being involved in the launch of CIVICA, the European University of Social Sciences, as part of a major project linked to various European higher education establishments. “Moreover, I have always accepted the challenge of being an independent director of various companies, both private and listed, in the industrial and financial fields, as well as a member of the investment committee for large endowments.” How important are rankings to you and your school? “Rankings are an important issue. Not just for the position that is achieved, which undoubtedly signals the value of a programme or indeed an entire institution, but above all in terms of the drive for improvement. You can discuss endlessly the relevance, or otherwise, of the parameters used and the weight they carry, but participating in these rankings means you’re open to comparison and competition, to reflecting on your weaknesses and to taking action to improve your programmes as well as the organisation as a whole. All of this is extremely useful and valuable.
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INTERVIEW WITH THE DEAN
BIOGRAPHY
Stefano Caselli is the dean of SDA Bocconi School of Management and has been professor of banking & finance since 2007; he has also been Algebris chair in long-term investment and absolute return at Bocconi University since 2019. Caselli was vice-rector for international affairs at Bocconi from 2012-2022 and is a member of the International Advisory Board of the Stockholm School of Economics, the School of Transnational Governance at EUI (European University Institute) and the Warsaw School of Economics. His research activities are devoted to the interaction between banks, investment and the corporate system, with a specific focus on strategy and governance of banks, private equity and finance for growth
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“Good leaders must always possess four distinct characteristics that distinguish them: they must be humble, nimble, unorthodox and respectful. Humble because leadership is not about the strength and the desire to prevail, but the ability to influence people and organisations by setting an example and having the right values. Nimble in that agility and the ability to be resilient and responsive is crucial in a world that is made of complexity and real unpredictability. “Unorthodox because the leader must know how to see the world in an unconventional and original way, to indicate possible paths to take that others do not see due to their conformity. Respectful, as it is too easy to destroy things in order to change them, while the patience of building on what has already been done is indicative of the true ability to lead – and lead in the long term.” Turning to accreditation, what has becoming AMBA-accredited meant to your school? “AMBA accreditation stands for continuous quality and continually striving towards excellence. The theme of accreditation is evolving; if at the beginning it represented a component of access to a group of programmes and schools of excellence, for those same schools today it is no longer a simple exercise, but a fundamental test to stimulate continuous improvement. “Conversely, for schools that want to approach the global market for the first time, it is always a crucial step to guarantee the quality of their higher education offering. The stimulus to continuous
“That said, rankings are not the ultimate goal and are not a primary one either. But all those notable institutions that make up the rankings are absolutely aware of this and of the importance of contributing to the growth of the education sector.” In your experience, are there circumstances around studying for a post-graduate business education qualification that are distinct in Italy compared to the rest of the world? “Every programme positioning itself within the post-experience arena (from the MBA to the executive master’s) has domestic specificities and features that make it comparable internationally. This is also the duty of business schools that compete globally: to attract and train talent from all over the world, to give them access to reading material and those tools and networks that can have an impact without borders, as well as to contribute to a better society and indeed a better world. “At a national level, it is even more necessary to provide local talent with a wider perspective. That said, each programme has its own distinctive features and SDA Bocconi includes elements specific to Italy and Milan; from sustainability and impact plus family-run businesses and SME development, to fashion and design, the competitive advantage of made-in-Italy, the healthcare system and the modalities of development in public/private partnerships. Italy has a world heritage and uniqueness; it is a laboratory of themes relevant to Europe.”
Do you believe that in the 21st century, with the rise of alternative providers such as LinkedIn and Coursera, the MBA can still stand out and distinguish itself in the market? “Such new tools are inevitable: innovation is part of human evolution and this affects not only the method of manufacturing good and products,
improvement, the dissemination of best practices and the growth of programme quality in relation to the evolution of market needs, is surely the set of factors that makes accreditation a fundamental and useful process for any school.”
“Sustainability is an integral component of the good leadership our MBAs and master’s degrees are committed to building”
Bocconi, of course, is a ‘triple crown’ school; what is the value of triple accreditation in your opinion? “The concept of ‘triple accreditation’ is not a mere designation. It has a deep value that represents the history of a business school and its desire to evolve and increase its impact on individuals and organisations. The triple accreditation is in fact a long path that a school such as SDA Bocconi has decided to undertake, thereby accepting comparisons, observing best practices and trying to emulate them, continually reflecting on our weaknesses and trying to confront the threats and opportunities of the market. “Nowadays, for me, above all else it means responsibility – towards our alumni, our students and all participants, all those stakeholders who believe in our school and who expect excellence and impact. It is a path that continues to evolve.” How do you think the ongoing unrest in the Ukraine and more recently in the Middle East has affected business schools? “We live today in a world where risks and gaps are constantly increasing. The instability of certain areas of the globe and,
but also of learning. I think the variety of new platforms and solutions is a big plus for business schools. First off, it makes higher education more visible and important, thereby stimulating individuals and organisations to more easily access previously inaccessible content. If higher education becomes a widespread phenomenon, the market and opportunities become greater for us all. “Secondly, the multiplication of learning opportunities widens the scope for management education. A school is not a mere distribution centre, but a community that builds knowledge by linking research to the learning experience. This feature clearly distinguishes a business school from a content provider, even a quality one.” What kind of skills do you think are necessary nowadays in order for MBA graduates to become efficient and productive leaders? “Leadership is a rare asset. Companies and institutions increasingly need good leaders, something that is both a great opportunity and a great responsibility for our MBA programmes. Building leadership is a complex path that requires the ability to connect different fields in a way that spans many diverse organisations and disciplines.
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INTERVIEW WITH THE DEAN
The topic of sustainability has been embedded in many MBA programmes – how integral is it, do you think, to the concept of leadership? “Sustainability is a concept that cuts across many themes; it is a way of reading and applying the various different disciplines. For this reason, at SDA Bocconi we have decided to use the concept of sustainability as the overall positioning theme of the school and as an integral component of the good leadership that our MBAs and our master’s degrees are committed to building. “The relevance of this challenge starts from the concept that every individual and organisation must produce growth and value. But at the same time many forces oppose our eco-system by questioning our ability to produce
unfortunately, the presence of war and violence makes us reflect even more on our mission. First of all, we must remember that education means freedom; without knowledge there is no freedom and it will not be possible to help build a better world in which to live. The challenge to knowledge must be embraced even more strongly by universities and business schools, as well as by the entire scientific community. “Secondly, our research activity must continue unabated; the themes of geopolitics, the management of information and good governance must increasingly become central elements within the scope of those institutions that have the task of forming good and capable leaders. Without them, it is a difficult challenge to stem and ultimately extinguish any form of conflict.” We hear so much nowadays about diversity and inclusion, as well as the concept of ‘belonging’; how can schools best train the next generation of managers and entrepreneurs to implement DE&I practices in a responsible manner? “Management means responsibility, ie the ability to lead individuals and organisations, as well as managing resources. There is no management without responsibility and no technical expertise alone can meet this concept. This principle underpins any challenge that DE&I faces both today and tomorrow. “The concept of exclusivity that often distinguishes business schools must be directed towards an effort of inclusiveness that incorporates respect, merit, openness to dialogue and the diversity of each individual’s path. But at the same time, it is a challenge that requires responsibility, common sense, good practices and a willingness to learn from your mistakes and correct them for the benefit of society as a whole.” The impact of AI and other generative algorithms such as ChatGPT on business school education has been well documented; what’s your position on it at Bocconi – do you feel it’s something faculty will inevitably need to adapt to in the future? “The real fear when it comes to AI is that human intelligence is not up to the task. The challenge must be shifted to human intelligence and the ability of individuals to place themselves above such increasingly powerful tools, to direct them to growth and the common good. The question we should not be afraid to face and to answer is this: What kind of society do we want to have? What are the values we believe in? “If we can give an answer, we will be able to find the correct trajectory for the development of AI. It is therefore inevitable that AI will be used in learning processes and as a teaching tool. It can free up time, effort and direct teaching and research activities to provide new added value. This is the beauty and charm of yet another challenge; business schools are born to face such challenges and will be able to provide a satisfactory response.”
well-being. Here those values become the antidote that allows us to continue on the path of value creation, through growth that is sustainable. There is no alternative to sustainability – without it, our way of existence is destined to decline.”
“Fundraising will become more vital and take on a new format to stimulate institutions of higher learning and enhance their capacity for impact”
A number of factors that will shape the global economy over the years to come have been identified, including the inevitability of structural transformation and the role of changing demographics – what would you add to this list? “I would add the relevance of good governance and leadership. Without these elements, the complexity of all the other challenges is bound to overwhelm our organisations. The issue here is that governance and leadership not only affect private organisations and businesses, but constitute a challenge for the State and public institutions. The scope of change is down to the understanding of the universality of these themes as a common link for society’s development.” Lastly, how do you see the global business school sector evolving over the next three to five years? With all the economic and geopolitical upheaval that the world is currently facing, is there still room for optimism? “Optimism is both our duty and a fundamental gesture of responsibility. Business schools will have to be even more committed to the common good and the dividing line between them and government schools will disappear because the themes of management, good governance and leadership will be transversal. To do this will take more scale and size, plus additional resources. “I would not be surprised to see in the coming years some consolidation of the sector, with possible mergers and acquisitions. In the same way, the subject of fundraising will become more vital and must take on a new format in order to stimulate our institutions of higher learning and enhance their capacity for impact. Since we are living in increasingly complex times, the scale of research and training will have to increase to enable us to imagine – and then trace – a possible path to the future.”
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The nature of business
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SUSTAINABILITY
B usiness people often claim that avoiding an adverse impact on the environment lowers financial profit. In response to such claims, it is important to acknowledge that many benefits derived from our ecosystem, such as the use of fresh water or the catching of fish, are not priced. Exploiting these benefits are, therefore, taken for granted and we are yet to create an economy in which we pay a true price for products and services, or in which the environmental impact of business is made transparent. The initial intentions of many companies are good. For example, businesses worked together with NGOs, unions and governments to draw up the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct 2023 , as they also did for the guidelines’ previous iterations in 2000 and 2011. The same is true regarding the creation of the United Nations Sustainable Development Goals. However, achieving a true implementation of these internationally established norms in daily business models has proven to be much more difficult. There are a great number of individuals who work hard to have a sustainable lifestyle in their personal lives. But as they arrive at work, these people often seem to assume another identity, becoming someone who is only allowed to act in the financial interests of their company. Moreover, there is a tendency for employees to feel that their personal responsibility for the environmental impact of their company is small and that any individual influence they might have would be negligible. Others may want to change their business’ environmental impact, but struggle with how they can achieve this on a larger scale. Students need to consider business practices in relation to Earth’s geophysical processes to alleviate their environmental impact. Here, Nyenrode Business University professor Tineke Lambooy explains how learning institutions can elaborate on the value of companies adopting a circular economy model, thereby helping to regenerate nature
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Learning from social enterprises In this context, it’s instructive to look at the business models of social enterprises and analyse what can be learned from them because these models will invariably be based around the goal of making a positive societal impact. Generally, social entrepreneurs begin by studying one or more societal challenges and then develop entrepreneurial ideas to address them. Designing a start-up business this way is, of course, easier than implementing the necessary measures that would be necessary to change the model of an existing business. However, sticking to the old business model of making profit at the expense of people and nature is no longer a viable option. Six out of nine ‘planetary boundaries’ that represent the vital geophysical processes for life on Earth have already been transgressed, according to studies from the Stockholm Resilience Centre. One of the boundaries breached concerns the climate, while others relate to biodiversity and the use of fresh water. This not only impacts on the continuity of business, but also affects us all as individuals. It’s clear that mainstream businesses need to rethink their business models, but this isn’t a quick and easy process because it requires a complete change in approach. However, one effective first step is to make the transition towards a circular economy model. This model, as defined by the Ellen MacArthur Foundation, is “designed to eliminate waste and pollution, circulate products and materials (at their highest value) and regenerate nature.” It’s an economic system centred on delivering better outcomes for people and the environment. Companies – and their products and services – are completely dependent on ecosystems. The design and use of computer software, for example, requires hardware that is produced following the mining of raw materials. The software itself runs on energy, the production and cooling of which necessitates the use of further raw materials, as well as water. Using a circular economy model can help ensure that the materials and ecosystem services on which a business is dependent are used in a non-harming way. To implement this approach, enterprises must extend the life of every product by repairing, refurbishing and recycling them, or by melting materials and making new textiles out of them. Businesses also need to ensure that they use renewable energy wherever possible and formulate a ‘giving back’ plan. For example, a business that takes water from aquifers should look at how it can give back that water. One of the largest Coca-Cola bottling plants in India lost its licence to operate for some years, after local communities held the company responsible for aggravating drought-related problems because it drew water from local wells. The plant was only allowed to reopen once the company had developed a plan for restoring water in the relevant aquifers. It did this by collecting water during the monsoon and bringing it back into the aquifers.
STRIVING FOR IMPACT Some companies have already implemented business models and initiatives that are designed, first and foremost, to have a positive impact on the environment, as detailed in the examples below. PATAGONIA US clothing firm Patagonia has a very interesting governance model. Its voting stock is transferred to the Patagonia Purpose Trust, an NGO created to protect the company’s values. Its non-voting stock, meanwhile, is given in its entirety to the Holdfast Collective, a non-profit dedicated to fighting the environmental crisis and defending nature. Any money made after reinvesting in the business is distributed as a dividend to help fight the climate crisis. Although this does not mean that Patagonia is restoring nature directly, it shows a commitment to minimising any negative aspects of its impact. INTERFACE “Weaving sustainability into everything we create,” reads the slogan of international carpet company Interface. The company has implemented recycling initiatives and offers a “carbon-negative carpet tile”. Other measures include picking up fishing nets left in the ocean, which reduces its carbon impact as the company is removing plastic. FAITH IN NATURE Faith in Nature is a hair and skincare brand. It made headlines when it appointed ‘nature’ to its board of directors in 2022. The company overhauled its structure and created a legally binding framework that puts the rights of nature at the heart of its business model. Nature is represented by a non- executive director who is currently Brontie Ansell, a senior lecturer at Essex Law School and director of Lawyers for Nature. If this director doesn’t agree with a decision, the company must explain why it deviated from her advice on its website.
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SUSTAINABILITY
Implementing a circular economy model In March 2020, the European Commission adopted the Circular Economy Action Plan. It is one of the main building blocks of the European Green Deal, the new agenda for sustainable growth in the European Union (EU). The projected transition to a circular economy is designed to reduce pressure on natural resources and create sustainable growth and jobs. By 2030, the goal is for all companies to use a circular business model in their operations. When making the switch to a circular business model, you must first consider how you can redesign your business model, as well as your products and services. This is a big change that requires a complete change of mindset, so every team in the organisation should be involved in brainstorming, from procurement and marketing to HR and design. Questions to ask include: “How can you transform your business’ current negative environmental impact into a positive environmental impact?” and “How might your business be able to contribute to a regeneration environment?” Analyse the negative and positive impact your company has on ecosystems in accordance with the tools provided by the Circular Economy Action Plan, as well as information from the aforementioned OECD Guidelines , the EU Corporate Sustainability Reporting Directive, the EU Corporate Sustainability Due Diligence Directive and other legislative dependencies. Once your business’ existing impact has been identified, you can consider the measures you need to take to neutralise and reduce its negative aspects. A useful exercise at this juncture is to create a balance sheet. On one side, detail your organisation’s negative environmental contributions and the cost of these. Then, on the other side, write down the measures you’ll take to reduce these and how much these actions will cost. Examples of measures taken might include: cleaning the water you use and reusing it; collecting the chemicals used in a business process and reusing them; addressing the noise produced during the company’s processes; and planting trees and designating areas in agricultural fields for rewilding to support local wildlife. Supporting continuity and profitability If there is an adverse environmental impact that you really cannot balance, you can invest in a fund dedicated to the regeneration of biodiversity, such as the ASN Biodiversity Fund. These funds tend to invest in nature-positive activities, such as forestry planning, marine research, eco-tourism and certain types of fishing. Meanwhile, as materials and products are given a longer lifecycle, the implication is that less money will need to be spent on raw materials and associated costs. This should support the long-term continuity and profitability of a business. Moreover, many employees will be happier in the knowledge that they are working for a company that implements good business practices. The fewer negative impacts a company produces, the more attractive it is among investors, who now need to be transparent about their portfolio’s impact in environmental, social and corporate governance (ESG) terms.
By pursuing the path to a circular economy model, evolving corporate reporting processes become far easier to adhere to. Indeed, litigation about violating environmental licence requirements, environmental pollution, non-compliance with the Paris 2015 goals and greenwashing all stand to be consigned to history. Instead, a company’s business model can become central to its marketing appeal and social enterprises often find that the company’s message sells its products or services, removing the need to advertise their specifics. Examples include Dopper, a company that sells refillable water bottles to fight plastic pollution with the slogan “The bottle is the message”, and Tony’s Chocolonely, where the slogan “crazy about chocolate, serious about people” denotes the company’s focus on ensuring its supply chain and operations are 100 per cent free of exploitation. How can we change our approach to sustainability? Business schools, boardrooms and governments should talk about the aforementioned planetary boundaries. These relate to processes that regulate the stability and resilience of the Earth; there is a risk of generating large-scale environmental changes if they are transgressed. Business schools should encourage students to talk about business practices in relation to all nine planetary boundaries. Taking these into account when making business decisions will help bring about positive global environmental change. Engagingly positively with the natural world is the only way to be both environmentally responsible and financially profitable but businesses – and by extension, providers of business education – must act now.
BIOGRAPHY Tineke Lambooy is a professor of corporate law at Nyenrode Business University in the Netherlands. Her research and areas of interest encompass topics that include corporate social responsibility; corporate governance; the circular economy; business and biodiversity; investing in biodiversity; and the rights of nature
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