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Fostering Sustainability by Management Education

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A volume in
Contemporary Perspectives in Corporate Social Performance and Policy
Agata Stachowicz-Stanusch, Series Editor

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Fostering Sustainability by Management Education

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edited by

Agata Stachowicz-Stanusch

Silesian University of Technology

Wolfgang Amann

HEC Paris

INFORMATION AGE PUBLISHING, INC.
Charlotte, NC • www.infoagepub.com

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       http://www.loc.gov

ISBN: 978-1-64113-116-2 (Paperback)

           978-1-64113-117-9 (Hardcover)

           978-1-64113-118-6 (ebook)

Copyright © 2018 Information Age Publishing Inc.

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Printed in the United States of America

Contents

1     Management Education for Corporate Social Responsibility: Fashion or Necessity

Agata Stachowicz-Stanusch and Wolfgang Amman

Part I

Values, Ethics, and Spirituality in Management Education

2     Can Character Strengths Be Taught in a School of Management?

Jaime Barrera Parra and Gustavo Alfonso González Couture

3     Implementing Spirituality in Business and Management Education

Amelia Naim Indrajaya

4     A Proposal for Management Education Based on the Jesuit Educative Model for Higher Education and PRME Objectives

Ricardo Aguado, Leire Alcañiz, and José Luis Retolaza

5     Educating Leaders of Tomorrow: The Development of Moral Character in Students

Susan S. Case and Edward Chavez

Part II

Embedding CSR in Management Education

6     Embedding Corporate Social Responsibility in Tertiary Education Programs for Sustainable Development in Africa

Enyonam Canice Kudonoo and Benony Kwaku Gordor

7     Anticorruption in Management Training and the Business Game Method

Christian Hauser and Ruth Nieffer

8     Embedding Sustainability in the Gustavson School of Business: A Change in Culture

Heather Ranson, Kim Ceulemans, and Monika I. Winn

9     Stories, Action, and Ethics in Management Education

Kenneth Mølbjerg Jørgensen

Part III

University Social Responsibility

10    Flamenco as a Pedagogical Metaphor For Excellence in a Values-Based Organization

Walter Baets

11    Integrating Sustainability Mindset and Impact Competencies in Management Education: Directions, Models, and Strategies

Marco Tavanti and Elizabeth B. Davis

12    Humanizing Corporations and Socializing Their Responsibilities: The Challenge for Business Schools

David Starr-Glass

13    Integrity Capital Acquisition and Management Learning From the Polish Experience: Fighting Corruption in a New Globalized Era

Peter Odrakiewicz and David Odrakiewicz

14    Today’s Student, Tomorrow’s Leader: Using Case Studies to Prepare College Students to Make Real-World Ethical Decisions

Kathryn H. Woods

About the Editors

About the Contributors

Chapter 1

Management Education for Corporate Social Responsibility

Fashion or Necessity

Agata Stachowicz-Stanusch and Wolfgang Amman

Corporate social responsibility (CSR), as a concept aimed at ensuring the sustainable balance of business economic, social, and environmental impacts both on itself and its stakeholders, has been from the last century an interesting field of study with significant implications not only for industry and society but also for academia.

First, the academic discussion was focused on the role of corporate managers (trustees) including their profit-making function (Berle, 1931, cf. Friedman, 1970) and social service (Dodd, 1932).

Today, the discussion is still ongoing and is supported by various institutions (e.g., EC, 2011), which promote environmental and social values at all levels of education. In this place, higher education is the field of special attention as universities (at the undergraduate and graduate level) are key places where future managers and employees can acquire new skills with a focus on CSR. It is not a surprise as

in an interconnected world, companies operate not as discrete, atomistic entities, but rather as elements of a global system characterized by complexity and rapid change. It is the struggle to define and manage the opportunities and risks of this new world that has fueled the emergence of CSR during the last few years, and will continue to do so in coming decades. (White, 2005)

This statement was formulated over a decade ago, and the current great diversity of academic publications related to CSR and education, as well as numerous initiatives taken in this area, confirm White’s words. Moreover, in the same year Ghoshal expressed a clear demand toward business schools that “do need to do a great deal more to help prevent future Enrons; they need only to stop doing a lot they currently do” (Ghoshal, 2005). That is why incorporating CSR in the higher education has become not only a fashion but a necessity for the contemporary world.

Some examples of the ways universities (including business schools) struggle to develop an awareness of CSR essence and how it may influence turning sustainability into practice are widespread all over the world: from Europe (Adamek, 2013; Matten & Moon, 2004; Seto-Pamies, Vernis & Figueras, 2011; Slavova & Bankova, 2015), through America (Bruce & Edgington, 2008; Navarro, 2008), Australia and Oceania (Heidt & Lamberton, 2011; Rundle-Thiele, & Wymer, 2010) to Asia (Park, Sarkar, & Bunch, 2012), and further. CSR is being integrated into business programs both by adding a new dedicated course on sustainable development/CSR and by embedding the sustainable development/CSR concepts and tools in the topics of existing courses (Bridges & Wilhelm 2008; Christensen, Peirce, Hartman, Hoffman, & Carrier, 2007). Those CSR related educational content is also included in the official curriculum of business sciences (Amman et al., 2015; Heidt and Lamberton, 2011).

However, “tokenism of adding a course on ethics” (Ghoshal, 2005) is not enough, because “[a]s long as all the other courses continue as they are, a single stand-alone course on corporate social responsibility will not change the situation in any way” (Ghoshal, 2005). The CSR needs to be integrated systematically in a holistic manner into each module of business programs (Hariharan & Williams, 2011). That is why it is necessary to present the sustainable content from various perspectives and introduce CSR not only in strategic management courses (Audebrand, 2010), but also in accounting and finance management (Overton, 2006; Sharma, Stewart, & Kelly, 2012), marketing (Borin & Metcalf, 2010) or law education (Sanford & Motwani, 2013).

We should also remember that changes in educational content are not all we are supposed to do in order to fulfill the academic mission. There is also the necessity to create a systemic mechanism for embedding social responsibility in future managers’ thinking, what requires the good interaction between the different academic stakeholders (not only faculties or lecturers but also academic governors, business partners and surrounding communities; Benn, Dunphy, Low, & Perey, 2009).

This book is our proposal for the process of implementing corporate social responsibility into management education. There are presented various pedagogical solutions and initiatives for heightening interest in CSR issues of future business leaders and for fostering incorporation of sustainable behaviors and attitudes in their future professional activity.

It includes three parts. The first one, entitled “Values, Ethics and Spirituality in Management Education,” opens with a question: “Can Character Strengths Be Taught in a School of Management?” by Jaime Barrera Parra and Gustavo Alfonso González Couture. The need to foster positive traits or character strengths beyond mere appreciation or apprehension of values is discussed here as the foundation for any management education that seeks to contribute to the development of socially responsible graduates. Taking account of the implications of national cultural differences in this context, the chapter reflects on the meaning of work as framed by three different worldviews. Exposure to differing worldviews is discussed both as a pedagogical tool and as an aid to development of the student’s moral consciousness within the realm of values. In support of this view, the chapter describes a framework for human understanding and its relation to morality.

The aim of the subsequent chapter, “Implementing Spirituality in Management Education” authored by Amelia Naim Indrajaya, is to share an example of implementing spirituality in business and management education to shift toward the concept of business as an agent for world benefit. The spirituality is embedded in the substance and the experiential learning process of a classroom. This is an important foundation for business leaders in implementing the triple bottom line (people, planet and profit) concept. In this chapter the author will share the discovery learning implemented through several soft skill classes of outstanding value, and global outlook class in IPMI International Business School, Jakarta, Indonesia. The learning processes are conducted through four spiritual development phases. First is the individual development phase. At IPMI the journey begins by students designing their own life map, in which students are challenged to create their vision of life and how they will leave a legacy. Second is by involving students in a team development phase through conducting, for example, the walkabout projects. The idea is to immerse the students in an experience that would change the way they look at life. Third is by involving the students in a total development phase in this case by joining a paradigm shifting platform for example the AIM2Flourish, by Case Western University, Cleveland, Ohio. Students share inspiring stories on profitable companies making a difference as business as an agent for world benefit by conducting the appreciative inquiries interview. The fourth phase is designing and implementing a start-up business with a minimum amount of investment and at the same time support at least one goal of the 17 sustainable developmental goals by the United Nations. By conducting this hands-on business project, students redefine the way they understand the concept of doing well by doing good in business.

Ricardo Aguado, Leire Alcañiz and José Luis Retolaza elaborate in “A Proposal for Management Education Based on the Jesuit Educative Model for Higher Education and PRME Objectives.” In this chapter, the authors highlight the growing concern in academic literature about the divergence between the socioeconomic interests of society and those of firms. A way of reducing this gap is to implement educational models in management and business schools in which sustainability (in its social, economic, and environmental dimensions) is engaged in the overall strategy of the firm. In this way, present and future managers would be able to align the functioning of competitive firms with the expected results of stakeholders and society in general. Along with the chapter, the authors present an educational model that is rooted in a humanistic understanding of the firm. This view proposes human dignity and social well-being as core principles to inform the role of the firm in society. In fact, human dignity is present at both the PRME initiative (United Nations) and the Ledesma-Kolvenbach (LK) model (Jesuit Business Schools). Together PRME and LK propose a new management education approach that is based on developing a responsible corporate behavior around human rights, labor, environment, and anticorruption activities (PRME), and fostering the dimensions of utility, justice, humanism, and spirituality (LK).

The last chapter in the first part of this volume, “Educating Leaders of Tomorrow: The Development of Moral Character in Students” by Susan S. Case and Edward Chavez, analyzes the effect an ethics class has on an undergraduate population. Through the course, students reflect on moments of remorse in their lives, dialogue with classmates, examine ethically charged news reports, and create a set of 10 precepts for themselves. The 10 precepts assignment, or personal 10 commandments of character, is a semester-long, iterative process in which students define and refine the tenets that will guide their moral behavior during and after the course concludes. Data show students realize not all situations are black and white, and though an action might not be “bad,” it may not be “good” by default. Individuals who took the course appeared to move from a position of egocentrism to one of interconnectedness and interdependence. Exploring students’ learning outcomes and 10 precepts, undergraduates were found to generate rules that suggested more inclusive and intentional behavior. Students expressed wanting to hold themselves more accountable, to be more genuine, practice open mindedness, and to be more honest with themselves and others. They aspired to promote justice, strengthen relationships in their community, and offer help to others without condition or reward.

The second part in this elaboration, “Embedding CSR in Management Education,” starts with Enyonam Canice Kudonoo and Benony Kwaku Gordor’s chapter entitled “Embedding CSR in Tertiary Education Programs for Sustainable Development in Africa.” This chapter focuses on the potential contribution of corporate social responsibility (CSR) for sustainable development in Africa. Embedding CSR in tertiary educational programs means innovatively weaving all four components of CSR (economic, legal, ethical, and philanthropic) into college courses, which could result in the production of graduates who are equipped to make a difference in their social and work lives, thus enabling them to contribute toward sustainable development in their countries. Extant literature on CSR in African countries was used to support this claim. The research results were used to develop CSR pyramids for students and university workers. The results show that students place a high value on CSR education, which is positioned second in their pyramid. Whereas workers placed education fourth in ascending order rendering it not as important as economic, legal, and philanthropic responsibilities. Expectations are the same in order of priority for the two groups of participants on the issue of philanthropic and ethical responsibilities. Accordingly, students want to feel CSR and learn the CSR way, which is, designing courses in such a way that CSR components form part of the objectives of courses.

Christian Hauser and Ruth Nieffer are authors of the next chapter about “Anticorruption in Management Education and the Business Game Method.” Education and training are considered the most efficient ways to preventing corruption. Against this background, the authors illustrate the methods used by companies to train their employees in the prevention of corruption. Furthermore, they discuss the benefits of using business games in corruption prevention trainings and how the business game HONEST is applied in the context of management training at firms and universities. Up to this point, more than 600 participants were educated through training using the business game HONEST. The chapter highlights the experiences and findings that were made using the HONEST game in anticorruption training based on these training implementations.

The subsequent elaboration, “Embedding Sustainability in the Gustavson School of Business: A Change in Culture” by Heather Ranson, Kim Ceulemans, and Monika I. Winn, reviews the sustainability integration process that formed the backbone of a cultural change toward sustainability at Gustavson. The review reveals that it was a combination of visionary leadership and grassroots approaches that contributed to deep and ongoing cultural and structural changes at the school. Challenges over the years have included the initial resistance to change, turnover of influential faculty members, and uncertain funding. Support for change came from growth of programs, inspiration from new faculty members, and guidance from the PRME secretariat. By analyzing the integration process and discussing the main lessons learned along the way, the chapter aims to provide scholars and practitioners deeper insights into effective practices for embedding sustainability into management education.

Kenneth Mølbjerg Jørgensen in his chapter “Stories, Action and Ethics in Management Education” discusses ethics in management education from Hannah Arendt’s notion of action. Action for Arendt is disclosed in storytelling and other artful expressions whereby people make their appearance in the world as distinct human beings with passions, feelings, intentions, and voices. Stories are collective, situated, embodied, and material. It is through stories that people disclose themselves as subjects in interaction with other people. The chapter suggests that stories have ethical consequences in three areas. First, they emphasize the creative act and the new beginning. Second, storytelling emphasizes human plurality, which implies that others are recognized as unique and different. Third, storytelling emphasizes our responsibility for the world and our worldly becoming. These three areas have consequences for the design of teaching practices for heightening students’ moral awareness. These concern both management students’ work of the self on the self, and their work on how they are with others. The implications of this ethical framework are discussed in regard to some modules in management education at Aalborg University. The first one is a personal leadership and coaching module of a master’s program in public governance. The second is a problem-based learning program on organization and strategy.

Another contribution in this book, and the last in this section, is a chapter entitled “Flamenco as a Pedagogical Metaphor for Excellence in a Values-Based Organization” by Walter Baets. In this paper, flamenco (in all its characteristics) is developed as a metaphor for values-based leadership in an organization. Compared to other music styles, flamenco is a much more holistic experience with its rhythm, harmony, and musical warmth. Moreover, at least according to many, flamenco is an expression of the spiritual. Flamenco is as much an art form as it is a lifestyle. Flamenco can easily be associated with a multidimensional and transversal character. An initial discovery of flamenco might help managers and management students to better understand, but equally “feel,” the concept of excellence in the holistic values-based company.

The third part is entitled “University Social Responsibility.” It begins with a chapter called “Integrating Sustainability Mindset and Impact Competencies in Management Education: Directions, Models and Strategies” by Marco Tavanti and Elizabeth B. Davis. Future leaders who can make a difference in corporate social performance need appropriate management education, and the Tavanti and Davis contribution highlights those global needs and appropriate strategic solutions. The chapter entitled “Integrating Sustainability Mindset and Impact Competencies in Management Education” offers various models and administrative strategies for implementing sustainability and socially impactful centered programs. Based on their administrative and practitioner experiences at the University of San Francisco, they offer innovative theoretical models anchored to the emerging literature and practical recommendations for bridging management with leadership and governance. The study makes a case for developing a sustainability value mindset through experiential learning with system thinking, management competencies, and stakeholder engagement. It also affirms that sustainability and responsible management education for social performance would need to implement a curricula design or integration reflecting competencies for people, planet, prosperity, and policy.

David Starr-Glass is an author of the subsequent chapter about “Humanizing Corporations and Socializing Their Responsibilities: The Challenge for Business Schools.” Corporate entities were purposefully created in order to separate them from society and to afford them privileges not available to humans. Given their spectacular nonhuman status, it is inevitable that those who populate corporations will see themselves as equally detached and apart from the civil society from which they come. Corporations are designed to be irresponsive to social concerns, and those within them cannot be socially responsible if they primarily self-identify with a corporate identity. A glimmer of social responsibility can only develop when corporate citizens recognize, embrace, and respond to their broader sense of community membership. Most influential corporate citizens are the product of business schools and their sense of membership in civil society can only materialize when they are corporations and individuals who have been nurtured and strengthened in the business school. However, this represents significant challenges for business schools, challenges that are explored in this chapter.

Peter Odrakiewicz and David Odrakiewicz in this book present the paper “Integrity Capital Acquisition and Management Learning from the Polish Experience: Fighting Corruption in a New Globalized Era,” which discusses integrity capital promulgation as it relates to intellectual capital in organizational and educational contexts. The writers suggest innovative methods of teaching and applying integrity in diverse organizations and in institutions of higher learning, by focusing on intellectual capital management and the promotion of social inclusion. The work recognizes that the development of integrity as a social brand is an innovative concept that can advance ethical and moral aims, as well as assist in the growth of business organizations. Noticing that the placement of ethical codes of conduct in such settings has been ineffective in establishing clear principles that allow managers and other leaders to act with integrity; the aim is to discuss better means of acquiring and inculcating integrity competences at the management level of organizations. The authors provide insight on how contexts that prevent corruption may be built. The ultimate goal is to construct corruption-free organizations that benefit their owners, shareholders, and community stakeholders. There is a special focus here on higher education institutions.

The book is concluded by Kathryn H. Woods and her chapter “Today’s Student, Tomorrow’s Leader: Using Case Studies to Prepare College Students to Make Real-World Ethical Decisions.” The importance of developing a strong sense of social responsibility in college students has been highlighted by industry professionals and academic experts alike. As the landscape of the business environment continues to evolve, so do the types of decisions made by business leaders. These changes have created the need for educators to think critically about how to effectively communicate the best strategies and methods for ethical decision-making to current university students. Teaching with case studies can help foster these types of decision-making skills in college graduates. Teaching ethical decision-making with cases can be an effective practice in management education, both at the undergraduate and graduate levels, and in both face-to-face and online courses. An overview of various case-study teaching methods are presented in this chapter. The methods reviewed include both experiential and hypothetical approaches to teaching with case studies. The chapter also reviews proven best practices and ways to overcome common challenges when using these methods.

This book is authored by a range of international experts and scientists from all over the world, who show us the multiaspect nature of embedding corporate social responsibility in management education. We hope that their work will be a utilitarian contribution into the business practice of future graduates.

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