In 1970 the economist was Milton Friedman He famously argued that firms had a single responsibility: to extend profits. For a long time, the so-called “Friedman Doctrine” was considered dogma in certain circles, including at many business schools.
Loads has modified since then. Governments and other education sponsors are increasingly demanding that universities prioritize social goals as set out within the UN program. 2030 Agenda for Sustainable Development.
Meanwhile, business schools must contend with latest market pressures, including global rankings who now take social impacts into consideration, and students, professors and accreditation bodies who increasingly value social responsibility.
But what exactly is “social impact” and might or not it’s measured? As Professor of Entrepreneurship As a former dean of a business school that has undergone the impact assessment process, my interest in these questions is greater than just theoretical.
A brand new standard of impact
In 2020, the Association to Advance Collegiate Schools of Business (AACSB) was founded – the organization that accredits greater than 600 Business schools within the US – have made a vital decision: They have revised their accreditation standards to incorporate: Commitment and social impact.
Social impact, as defined by the AACSB, refers to “how a school makes a positive impact on the betterment of society, as identified in the school's mission and strategic plan.” While AACSB-accredited schools at the moment are required to “demonstrate positive societal impact,” the organization gives schools wide discretion in how they work toward compliance with the usual.
While the general response has been positive, business schools have been in search of additional insights to assist them discover and measure their social impact. Ultimately, universities profit their communities in some ways. If you ought to pursue the impact of a business school, where do you have to even start?
Impact assessment tools
In my personal experience, it is nice for a business school to first take a look at its strategic plan.
That's why Determining impacts is a fancy process This requires the evaluation of giant amounts of knowledge. Because it may be so far-reaching, it’s difficult to find out and measure impacts best addressed in accordance with the strategic intent of the organization.
A faculty's strategic plan can function a solid foundation for identifying impact areas that align with the college's goals. It also sends a message to accreditors and all stakeholders that its impact areas are near the core of its operations.
The next step for many faculties, including my university, is to adopt an impact framework. An impact framework is a tool organizations use to discover initiatives and measure progress toward goals. Research shows that impact frameworks could be effective in sustaining organizations caught in a purposeful journeyby providing guardrails to stop people from losing sight of their goals.
Such a framework tailored to business schools is obtainable by the European Foundation for Management Development, a world accreditation organization based in Brussels. In addition to accreditation activities, the inspiration offers the so-called “accreditation service”. Business School Impact Systemwhich was initiated at greater than 90 business schools worldwide.
The Business School Impact System might be the longest established system of its kind since its inception in 2012. At the time, no other resource was available—unless a faculty hired a consulting firm to conduct an impact evaluation effort. The Business School Impact System Framework examines 120 indicators in seven impact dimensions.
Other organizations, akin to the UN, are supported Principles for responsible educationoffer further information.
What’s in it for business schools?
Evaluate impact offerings many benefits for business schools. For example, it may increase a program's status and attract potential students, employers, and college. It can even offer compelling evidence for fundraising efforts and funding applications. In addition, insights from impact assessments can inform curriculum development and make programs relevant to current societal challenges.
Finally, social impact assessments can Foster stronger partnerships with community organizations and industryby encouraging universities to prioritize real-world learning opportunities for college students and enabling them to contribute on to society through community projects and research initiatives.
Business schools have long played a critical role in shaping society – this was true in Milton Friedman's time and stays true today. What is latest is that business schools try to measure their impact. I feel it is a welcome change.
image credit : theconversation.com