Business Schools Rethink Purpose as Student Demands Shift

Programs aimed at helping students discover their calling are gaining momentum in higher education, as a new generation of learners expects more from their institutions than traditional training.

A 2019 Bates/Gallup poll found that 80% of college graduates seek purpose in their work. A 2023 survey showed that half of Gen Z and millennial employees in the U.K. and U.S. have quit jobs over misaligned values. These sentiments are now influencing business school classrooms, where students want course content to reflect pressing social issues, from sustainability to equity.

The Financial Times reports that “there may never have been a more demanding cohort,” yet business schools have been slower to respond compared with other disciplines. Critics have called for reform, with some even suggesting dismantling current models altogether.

Historically, research has linked business school applicants to higher levels of narcissism, psychopathy and Machiavellianism. Studies show these traits can be reinforced during MBA programs and persist after graduation. One large-scale analysis of U.S. firms found no performance gap between companies run by business school graduates and those led by non-graduates. However, firms managed by graduates cut wages by 6% over five years, while non-MBA leaders shared profits with employees.

Despite skepticism about the MBA’s value, some schools are experimenting with new approaches. Instead of treating ethics courses as stand-alone requirements, they are working to integrate moral formation into both curriculum and campus culture. This includes character-focused programming, faculty mentorship and experiential learning aimed at fostering judgment and wisdom alongside technical skills.

Experts like Stanford scholar Bill Damon advocate for faculty to create conditions where students can find meaning themselves. Such relational teaching, proponents argue, inspires as well as informs — a process artificial intelligence cannot replicate.

Several institutions are leading the way, including Notre Dame’s Institute for Social Concerns, Bates College’s Center for Purposeful Work, Stanford’s Designing Your Life course and the University of Michigan’s Management as a Calling. These programs challenge students to define the kind of leaders they want to become and the legacy they hope to leave.

Supporters say this marks a return to the early mission of business education, which Harvard sociologist Rakesh Khurana describes as training managers to pursue the “higher aims of commerce in service to society.” The challenge now is whether more schools will embrace that vision.

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