Status of Ethics. Corporate Governance. CSR and Environment Education in Business Schools in India: An Exploratory Study ABSTRACT The last two decennaries have witnessed unprecedented surpluss by concerns across the universe. The largest corporate frauds have raised inquiries on the bounds of duty of concern. The recent fiscal crisis has brought into inquiry the managerial greed and the mode in which inducement constructions have perpetuated such dysfunctional behaviours in organisations. With rapid growing and internationalisation of concerns. there is an pressing demand to analyze the vocabulary of concern organisations to include intentionally sustainability. moralss. administration and corporate duty. There have been several calls from idea leaders in concern and academe to integrate a deeper apprehension of the rules refering to duty of concern in the concern school course of study. The research is an effort at understanding the province of the field of learning in corporate administration ( CG ) . moralss. corporate societal duty ( CSR ) and environment and sustainability.
While it is recognized that instruction of this topic is indispensable. non much is known about the content delivered in the classs. the teaching method in the schoolroom. the learning stuff used and the version done for different sorts of nature of participants on the classs. This survey was conducted utilizing content analysis of web sites and study utilizing a questionnaire to understand the position of instruction in this field. Some of the important findings were that a big figure of concern schools in India offered classs in the field of moralss. CSR. CG and environment. The widespread prevalence of concern moralss classs offered in concern schools and a famine of CG classs are besides of significance. 1 Padmini Srinivasan. Assistant Professor ; Vasanthi Srinivasan. Associate Professor & A ; R. V. Anand. Research Associate at Center for Corporate Governance all @ IIM Bangalore. The fiscal support provided by NFCG for the undertaking is acknowledged. 3 1. Introduction In recent old ages. CG has attained significance all over the universe.
Two of import factors have led to rapid developments in the field. viz. the integrating and globalisation of fiscal markets and a rush of corporate dirts such as Enron. World Com and others. The recent fiscal crisis and its wake that the universe economic system is still sing have led to eroding in the religion of society towards big concerns. In peculiar. the “Occupy Wall Street” motion has raised important inquiries on the function of the fiscal sector in a planetary universe. While the dominant discourse has focused on the greed of leaders and compensation constructions that promote and incentivize short-run behaviours. an every bit strong discourse is the systematic mode in which the conformity to norms. and criterions of responsible behavior have been decimated. Many columns on CG have spoken of the regulative failures at the degree of corporations.
It is of import that any instruction in the field of direction demands to hold an component of the regulative and conformity facet of administration. India is poised for significant growing. and it is predicted that Brazil. Russia. India and China ( BRIC ) states will lift as influential economic powers in the planetary economic system ( Wilson & A ; Purushothaman 2003 ) . The combined GDP of the BRIC states is likely to be higher than that of developed states raising some cardinal inquiries on the responsible function of concern corporations in these states. The planetary fiscal crisis of 2008 and the more recent corporate fraud at a taking information engineering company have raised a batch of concerns about administration patterns in India. Adding to this. a significant investings flux by foreign institutional investors2 has made it is imperative that companies follow best patterns on CG. Consequently. there has been an increasing attempt around CG constructions and mechanisms by both regulators and corporations.
The recent fiscal crisis along with reported misconduct of executives of big believable transnational corporations in the fiscal services sector who were alumnas of taking concern schools has rekindled the argument on the function of concern schools in preparing responsible leaders for the hereafter. Several bookmans have sporadically called for a critical contemplation on what concern schools teach their pupils in the field of moralss and 2Foreign institutional investors have made significant investings in the capital market. for case. an sum $ 358 billion in the Indian capital market between April and December 2011 entirely and a entire investing of $ 100 billion between April 2000 and December 2011. Beginning: hypertext transfer protocol: //dipp. gov. in/English/Publications/FDI_Statistics/2011/india_FDI_December2011. pdf4 duty ( Ghoshal. 2005 ) . While there are still a few inquiries raised about the function of moralss in the dominant shareholder-oriented ‘‘quarter to quarter’’ focussed concern organisations. there is a turning consciousness within concern schools that the stakeholder position to organisations can non be downplayed in a globalized context.
Institutions such as The Association to Advance Collegiate Schools of Business ( AACSB ) . Aspen Institute. European Academy of Business in Society ( EABIS ) and International Society of Business. Economicss and Ethics ( ISBEE ) have contributed significantly to make an enabling support system for instruction of moralss. CSR. environment and sustainability in concern schools globally. Yet. much of the literature on instruction of concern moralss and CSR has been dominated by the North American and European position. There is really small research on the instruction of moralss in other contexts. Several studies on instruction of concern moralss. CSR and environment ( Cornelius. Wallace & A ; Tasabehji. 2007: Christensen et Al. 2007 ; Matten & A ; Moon 2004 ; Enderle. 1996 ; Cowton & A ; Dunfee. 1995 ; Schoenfeldt. McDonald & A ; Youngblood. 1991 ; Van Lujik. 1990: De George. 1987 ; Hoffman & A ; Moore. 1982 ) have been conducted chiefly in the context of North America and Europe. Worldwide studies by Enderle ( 1997 ) and Rossouw ( 2012 ) show an increasing prevalence of concern moralss learning across the different parts of the universe.
As Rossouw ( 2012 ) notes “Should one categorize the prevalence of concern and economic moralss harmonizing to the classs of low. medium and high. a unsmooth appraisal would be that North America and Europe would busy the high class. Sub-Saharan Africa. South and South-East Asia. East Asia and Oceania the medium class. with Latin America and Central Asia in the low class ( see Figure 1 ) . However. this would be a really unsmooth appraisal that does non give sufficient acknowledgment to significant differences within each of these parts. ” 5 Figure 1: Business moralss learning across the parts
Beginning: Rossouw ( 2012 ) 1. 2. Early surveies in India
The reappraisal of literature in the field of instruction of concern moralss or CSR in India reveals that there are merely two reported surveies. The first national study of ‘‘Corporate duty ( CR ) : Teaching and research in direction education’’ was conducted in 2007 by Partners in Change. a not-for-profit organisation in India. A sum of 104 of the top-ranked direction establishments participated in the study. The respondents were caputs of establishments. academic caputs or senior module. The study covered establishments in 18 provinces out of the 22 across the state. About 57 % of the establishments surveyed had a mandatory class that was related to CR. This could be a class on concern moralss. CG or CSR.
The survey concluded with an observation: ‘‘CR instruction may non be in a nascent phase in India. but seems to hold more land to cover’’ ( Partners in Change. 2007 ) . The 2nd survey was portion of the worldwide study on the instruction of concern moralss done in 2010–11. Srinivasan ( 2012 ) reported that out of the 57 faculty members that responded to the study in India. 14 of them taught moralss in the undergraduate plan and 42 of them taught concern moralss. CSR. CG or sustainability in the MBA plan. A few of the MBA sections and colleges affiliated to a university offered concern moralss as a mandatory class. while others offered it as an elected. Among the standalone independent concern schools besides. there were broad fluctuations on whether concern moralss is being offered as a nucleus class or elected. One of the interesting facets of the study was that several schools mentioned that they did non hold a separate concern moralss class. but it was taught as a portion of a CG or CSR class. In the Indian context. it may be utile to analyze the full gamut of classs that are being offered in concern schools that promote and heighten ethical thought and promote responsible behaviour among future directors and leaders. 1. 3 Management instruction in India There has been a rapid growing in the direction instruction in India in the last two decennaries.
In 1988. India had about a 100 concern schools and by 2008. the figure of concern schools was about 1700 ( Philip. 2008 ) . There are three types of concern schools in India: those set up through a particular act of Parliament or Deemed University. those colleges offering MBA and affiliated to the State and Central Universities and private concern schools. The apex regulative organic structure is the All India Council for Technical Education. There are at present no organic structures in India which guarantee that easy integrating of moralss and CSR into the course of study of concern schools occurs. Unlike concern schools in other parts of the universe. a huge bulk of pupils in India who are prosecuting an MBA grade have no work experience. They have no apprehension or experience of the world of work organisations. In this context. classs such as concern moralss and CG tend to be seen as “necessary evil” or a “good thing to do” instead than a utile topic which has relevancy in their hereafter functions as leaders.
In some of the top-ranked concern schools. a bulk of the pupils tend to be applied scientists with about no background in broad humanistic disciplines. Their grasp of the classs in moralss. CSR or administration is really hapless and they believe such classs are non of import or relevant to their hereafter callings. If class design is a map of the nature of pupils who are on the plan. so we would believe that the instruction of moralss. environment. CSR and administration in the Indian context will reflect some singularity. It is apparent from the reappraisal of literature that there is a dearth of research in the field of concern moralss learning in the Indian context and that since module were offering classs incorporating moralss. CSR. administration and sustainability. a deeper probe of the province of instruction of these classs was required. With rapid growing of concern schools. the demand for module far outstrips the supply in all Fieldss of direction.
In a field such as concern moralss or CSR. where there are non many officially trained professionals. and besides non adequate professional classs available for preparation or enfranchisement. the impact of a hapless class design is likely to be a 7 greater hindrance compared to other functional classs. With this background. the aim of the present survey was to: a. To research the bing province of instruction of CG. moralss. CSR. environment and sustainability related countries in concern schools in India. B. To understand the class design and in peculiar the teaching method used and place the spreads that exist c. To suggest suggestions to beef up the instruction in these countries given the alone socio-economic context of India.
The remainder of the survey is organized as follows. Section 2 discusses the methodological analysis adopted for the survey. Section 3 presents the information analysis ; Section 4 discusses the consequences of the class design and challenges faced by the module. The last subdivision concludes with recommendations for the manner frontward. 2. Methodology Business schools in India are of three sorts: those affiliated to universities. standalone concern schools and concern schools established through a particular Act of Parliament. The sample includes all types of concern schools. This survey was undertaken in three stages: The first stage of the survey consisted of an analysis of web sites of concern schools which were offering classs on moralss. administration. CSR and environment ( afterlife referred to as ECCE classs ) . the 2nd stage consisted of a questionnaire study to choose concern schools.
The methodological analysis was an effort to understand the province of field of learning in countries refering to ECCE classs to dig on the class content and teaching method and eventually to understand the challenges and the chances available to beef up the province of learning in these countries. In the first stage. the web sites of approximately 200 schools ( standalone and university-affiliated ) were studied. All class lineations were downloaded and a content analysis of the lineations was attempted. In the 2nd stage. based on an analysis of the web sites. a questionnaire was developed to garner more informations on the class content. the rating procedure. the text books used and the methodological analysis adopted for learning in these classs ( see Appendix 1 ) . The study questionnaires were mailed to the top-ranked concern schools in India. The ranking of concern 8 schools in India is a comparatively recent phenomenon compared to the West. Therefore. rankings from four taking concern periodicals were used to get at the concluding list of concern schools.
The concern periodicals were Business India. Business World. Business Today and Outlook India. The rankings for the old ages 2009. 2010 and 2011 were examined. Any concern school that appeared in the top 50. at least one time during the three old ages was included for the study. This resulted in a list of 107 concern schools. The list of schools is given in Appendix 2. The questionnaire was sent to these schools and in the first unit of ammunition of contact elicited 4 responses merely ( 4 % of the sample ) . A 2nd unit of ammunition of mails was sent after 10 yearss and that resulted in 7 responses. The 3rd unit of ammunition of followup was through phone calls to the deans/directors. reach mails/phone calls to individual module learning the classs. and other beginnings ( module registered with World Wide Web. teachcsr. com web site and through personal contacts ) .
The concluding study resulted in 42 responses from assorted concern schools stand foring 39 % of the sample. Six concern schools did non offer any standalone class on moralss. CSR. CG or environment. 3. Datas analysis: 3. 1 Contented analysis of website The secondary informations based on the website analysis covered the 107 ranked concern schools and 44 non-ranked concern schools which were affiliated to universities. The analysis in the following subdivision is presented individually for the graded concern schools and the non-ranked concern schools affiliated to universities. Non-ranked standalone concern schools in India are non portion of the survey.