CNBC recently published an article written by Nicole Lapin that discussed the plight of business schools and their aim to restore integrity. The article mentioned that the recent economic crisis has resulted in society blaming the financial sector for its woes. This blame has extended to questioning the value and the relevance of the MBA program.
It seemed odd that a discussion of the relevance of the MBA program would exclude any mention of curriculum, particularly the role of business ethics courses. Lapin interviewed various representatives of Fordham University’s Graduate School of Business who provided her with little more than generic platitudes. They spoke generally about the role of business schools, developing students’ passion for the MBA program, and the recent increase in MBA graduate hiring. However, no one addressed the primary reasons that people are questioning the value of the business school education.
The first key reason that many are skeptical about the value of the MBA is the failure of the financial sector to recognize the formation of the real estate bubble and the inevitable demise of mortgage backed securities. Many investors lost their retirement savings because financial advisors, many of whom had business school degrees, failed to foresee the financial crisis even though warning signs were there. It seems as if no one in the sector learned anything from the previous stock market collapse related to the dot-com bubble. » Read more: Is Business School Broken?