Business schools invest in cultural diversity for sustainability

Business schools worldwide are increasingly using diversity to help teach environmental, social and (corporate) governance (ESG) aspects, as these sustainability issues grow in importance commercially and for regulatory compliance.

These strategies are underpinned by the United Nations 2030 Agenda for Sustainable Development and its associated 17 Sustainable Development Goals (SDGs). SDG 4 aims to ensure that by 2030, “all learners acquire the knowledge and skills needed to promote sustainable development, including, among others, through education for sustainable development (…) and appreciation of cultural diversity”.

Stephanie Bryant at the Association to Advance Collegiate Schools of Business (AACSB), a Florida, United States-based accreditation organisation with more than 1,000 accredited institutions worldwide, told University World News that while business schools in Europe were “ahead of the game because of some of the governmental regulations” there regarding ESG reporting, business schools in “other parts of the world are also starting to really catch up”.

People are talking about sustainability and the societal impact of research in the real world, and business schools are starting to add it “quite a lot” to their curricula and activities, noted Bryant, the association’s executive vice-president and global chief accreditation officer.

While AACSB’s accreditation standards do not require schools to incorporate sustainability per se, they do insist “that schools make a positive impact on society”, she explained.

In fact, she stressed, business schools constantly watch each other and “see what the best practices are” to try to follow them, and the AACSB is supporting this transformation.

The state of accreditation report

The association annually publishes a State of Accreditation Report, which shows what business schools are doing, particularly with societal impact in the environment, society and the economy and “how it differs by regions of the world”, Bryant said.

For instance, the report highlights the work of the Graduate School of International Management (GSIM) at the International University of Japan, whose research institute “plays a significant role in fostering interdisciplinary research on pressing issues in Japan and facilitating knowledge dissemination to society”.

The AASCB report added: “GSIM’s strong connections with major Japanese companies and government agencies have resulted in impactful projects, influencing Japanese government energy policy and contributing to development initiatives in partnership with the Japanese government.”

The association also praised the work of the Culverhouse College of Business at the University of Alabama in establishing “a robust support structure and processes to foster, promote and disseminate initiatives that enhance resilience in rural and struggling communities throughout Alabama” and in amplifying the “visibility and impact of research focused on enhancing the quality of life and economic opportunities in these regions”.

This move away from a past heavy focus on financial and operational efficiency reflects a change in the business world from profits being the key driver, to today, where “companies by and large are more embracing this multi-stakeholder approach” or pluralistic approach, where making profit “does not have to come at the expense of doing good things for the planet and for people”, she said.

Bryant highlighted Microsoft CEO Satya Nadella’s comments in 2022, “about this multi-stakeholder approach and how the company is really about helping the world be a better place through what they do”.

Cultural diversity to uplift ESD

Reaching such goals can be boosted by cultural diversity, said Bryant: “Companies care about getting the very best talent,” and “diverse teams, diverse voices, make better business decisions”.

Different countries care about different things and diversity and sustainability have different meanings in different places. Cultural diversity helps to ensure that we have “different voices at the table, these voices are heard” and that everyone feels they belong at that table, she explained, stressing that the AACSB’s work on this, by sharing perspectives, helps to “bring the voices together”.

Bryant noted that diversity is, alongside sustainability, a “hot topic” in higher education, with much research on both subjects being released.

Furthermore, she said, increasingly “students want purpose-driven work”, in which these concepts converge, “and companies want to meet them where they are”. Instead of just listening to lectures, students want to act and be a part of the solution; therefore business schools must involve them.

She gave the example of SKEMA (School of Knowledge Economy and Management) Business School, a Lille, France-based private higher education and research institution, which last year hosted a social coding event (called a ‘hackathon’) challenging “people to bring ideas to the table” about inclusion. It also ran a 2022 hackathon in its ‘2022 Innovations that Inspire’ programme.

SKEMA, a highly respected business school, “has done some incredible work on inclusive excellence”, she said.

A non-profit institute, SKEMA has eight campuses worldwide, including in Paris, China, South Africa, the United States, Canada and Brazil, and people from more than 130 nationalities. It offers, for instance, an MSc in entrepreneurship and design for sustainability. Among its topics are ethics, governance and entrepreneurship; design for social innovation; sustainable organisation and people management; and design ethics.

The school’s commitment to sustainability and social responsibility is based on four priorities it wants to inculcate into students: raising awareness and developing knowledge regarding sustainable development; promoting social responsibility; encouraging diversity, equal opportunities and non-discrimination; and combating climate change.

Changing mindsets to change the world

Another business school accredited by AACSB and investing in sustainability and cultural diversity is the Finnish public University of Oulu Business School (OBS), which, according to Satu Nätti, professor and dean for education, aims to produce “scientific information and science-based solutions, and train future pioneers to build a more sustainable, intelligent and humane world”.

The school is continually improving its operations to create a positive societal impact and it is committed to promoting the SDGs through research and education, Nätti stressed.

She described OBS’ values, namely “the Nordic values of equal opportunities, low hierarchy, integrity, and respect for diversity”, along with building a sense of community and expertise, and values creating “a meaning to our commitment to education for sustainable development”.

Among several measures, OBS decided to introduce an MSc in sustainable marketing, seeking applicants from January 2024, “with renewed content and emphasis on sustainability-related themes in the marketing discipline”. The business school is revamping its economics programmes so that from 2025 onwards courses will comprise a programme of “responsible economics and finance”, Nätti told University World News.

Moreover, the university runs a ‘globally responsible business’ course, which is mandatory for all masters degree students, enabling them to “learn to detect, analyse and create different approaches to achieve social and environmental goals globally and locally, in addition to the economic objectives of a business”, the dean for education said.

“Additionally, in many courses, the societal impact is promoted by solving real-life business cases provided by local businesses.”

OBS also has “guidelines for advancing diversity and inclusion” regarding students and faculty recruitment, according to Nätti. In fact, the school is also working with national and local authorities to attract international students to Finland, hoping they will remain in the country after graduating to aid “the internationalisation of Finnish businesses and guaranteeing the sufficiency of the workforce”.

She added that OBS also works to promote an “atmosphere of understanding and acceptance for different learners” to enable inclusion, and stressed that “pedagogical choices that encourage collaboration among students in diversified groups (…) is one genuine strength of an international learning experience” at OBS.

Also, “a new professorship in ‘business ethics’ to create new courses and boost the research in sustainability even more” was created in 2023 at OBS, said the dean for education, with José-Carlos García-Rosell, who has extensive experience teaching sustainability issues, being appointed.

He told University World News that cultural diversity includes not only national or ethnic differences, but also religious, linguistic, social and economic diversity, stressing: “Cultural diversity not only facilitates the development of innovative solutions to sustainability challenges (due to diversity of ideas), but also promotes inclusion, community building and resilience, all of which are essential for advancing sustainable development goals”.

This is especially important since “sustainability requires new ways of thinking to address environmental and social challenges”, he said.

Diversity builds up more profitable companies

Aware of these opportunities, the University of New South Wales (UNSW) Business School in Australia is committed to “cultivating a mindset where sustainability seamlessly integrates” everyday lives and habits, Elvira Sojli, associate dean of EDI (equity, diversity and inclusion), told University World News.

In September 2023, for the second consecutive year, the UNSW Business School was named the best business school in Australia in the Australian Financial Review AFR BOSS 2023 Best Business Schools Rankings, which assesses quality, reputation, and graduates’ employment and salary prospects.

Among other measures helping UNSW to gather plaudits, the school has developed guidelines on classroom inclusivity that “enable accessibility, use inclusive language, and promote social justice”.

Plus, it understands that a diversity of students and staff from different cultural and socio-economic backgrounds “enriches discussions, problem-solving processes, and decision-making related to sustainability and any other issues”, noted Sojli, adding: “By considering a wide range of viewpoints, we create more effective and inclusive solutions.”

She stressed that, following ESD principles, which encourage “social responsibility by fostering awareness of interconnectedness and interdependence among people, communities and ecosystems”, the business school delivers “materials that build on the [Australian] Aboriginal culture and processes, that have been in tune with the environment for all of their existence”.

“We use local and Aboriginal suppliers as our preferred suppliers across business school activities. In the classroom, we discuss academic literature and case studies on diversity and the identified outcomes of diversity for firms, to show the link between diversity and inclusion and firm outcomes,” added Sojli.

She argued that “firms that embrace diversity and promote inclusive practices are often better positioned to access diverse markets and engage with a broader range of consumers, as they can understand their consumers better” and meet their needs regarding environmental sustainability and social responsibility.

Plus, diversity can enhance firms’ “resilience and ability to adapt to changing environmental and market conditions”. This is because “by incorporating diverse perspectives, skills and experiences into decision-making processes, businesses can better anticipate and respond to emerging sustainability challenges, regulatory changes and market trends”.

With sustainability and cultural diversity seen as increasingly important foundations in business schools’ programmes, future business leaders will be better equipped to deliver holistic and sustainable success in commerce and industry.