In the early 2000s, corporate social responsibility (CSR) became "a central part of business school curriculum at top tier institutions," as Quartz puts it, with students being taught to " prioritize communal concerns rather than being motivated by the gains of an exchange."
But as research has shown that ESG (environmental, social, governance) is far from clear-cut and good intentions don't always equate with good outcomes, it's time for students and their future employers to start looking beyond profit-based strategies and toward what Quartz calls "purpose-oriented strategies rather than profit-based approaches."
That's why, in the wake of Bono's "Buy (Red) Campaign" and TOMs shoes' "One for One" model, it's more important than ever for business schools to focus on social entrepreneurship and impact-based investing.
"By promoting purpose-oriented strategies rather than profit-based approaches, higher ed systems are dulling overall interests for understanding and applying business principles and competencies," writes Megan McArdle.
"And younger generations have certainly proved to have a vested interest when it comes to social matters....
The impetus for firms to enhance their social performance is being derived from those who are young and educated within their workforce
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