Busch School Founding Proposal

The document that started what is now the Busch School of Business

It seems fitting to begin this series of documentary contributions to the intellectual project of the Busch School with the document that started it all.¹

Proposal for a School of Business & Economics

The purpose of this proposal is to seek approval the Academic Senate and the Board of Trustees of The Catholic University of America for the creation of a School of Business & Economics.²

Background

In August 2008, Dean Poos (of the School of Arts & Sciences, where the Department of Business & Economics was housed) convened a one-day offsite retreat of the faculty of the Department of Business & Economics. During this retreat our faculty agreed on a mission statement for the Department and a set of priorities for the next five years, all of which were approved by the University Provost.  These priorities included the development and launch of two new graduate programs; identification and hiring of new faculty (funded by the graduate programs); assessment of the possibility of accreditation by the Association for the Advancement of Collegiate Schools of Business (AACSB); and rationalization of our major programs of study.  These priorities were substantively completed in just over two years, by Fall 2011.

During the University strategic planning process that took place in 2011, the idea of creating a school of business was raised in the Academic Affairs subcommittee. This was subsequently adopted into the University’s strategic plan as action item 2.1.1.3, which calls for the evaluation of aspirational competition and the identification of key success factors for excellence in business and economics education.  In response to this action item, from January to October, 2012, the Department of Business & Economics undertook to evaluate the potential for a school, and then developed a strategic plan for a proposed school of business and economics, which is presented here as part of this proposal.

A Distinctive Idea

Business schools teach economic and business theories that claim to be amoral. There is a growing recognition among scholars that the separation between business and economics on the one hand, and morality on the other, is harmful to both.³ Among other things, it fosters corporate scandal, dwindling prosperity, and economic injustice.⁴ Our distinctive idea is to bring the rich resources of the Catholic intellectual tradition and the natural law to bear upon business and economics in order to re-integrate morality into them and to foster a more person-centered economic life.

Vision, Mission, and Goals

The vision for the proposed School is to be a leading school of business and economics whose success arises from being rooted in the Catholic intellectual tradition and the natural law.

The mission for the proposed school is to promote a person-centered economy. This mission is to be achieved by providing intellectual leadership in business and economics through sound theoretical and practical teaching and scholarship, inspired by the Catholic intellectual tradition, in support of the mission of the University.

The goals for the proposed school are to provide:

1. Research that provides deeper insights in business and economics by putting the person at the center of all economic activity. 

2. Teaching oriented towards a person-centered view of economic life, cultivation of a sense of vocation, and formation in the virtues appropriate to the various business and economic disciplines.

3. Service to society through faculty scholarship and consultation with governments, industry, Church, and civic society, and by imparting to students a strong sense of professionalism and service to the human person.

Discussion

Perhaps the most pressing questions in considering this proposal are: does the world really need another school of business, and if so, is The Catholic University of America the right place for such a school?  We believe that the answer to both questions is yes.  

A large part of what is wrong with the global economy and with business practice today—economic stagnation, corporate scandal, excessive and misguided regulation of business, declining faith in the free market—has arisen because of flawed theories of business and economics.  These theories, prevalent in most of the leading business schools around the world today, suggest—where they do not outright insist—that: profits should be put ahead of all else, including people; the economy is an amoral zone and virtues have no relevance to business; emphasis should be on short-term, rather than long term results; workers are expendable and less important than what they produce; and marketing communication is inherently manipulative rather than educational.

At the same time there remains a strong desire for justice in the marketplace, evidenced in efforts to end to all kinds of discrimination in the workplace, for justice in wages, and for employment security, among many others.  Too often, though, these desires manifest themselves in the form of regulatory and compliance requirements that weigh most heavily on those who are the least offenders, and which ultimately do not achieve their stated purposes. In the absence of virtue, one resorts to legal enforcement, but such enforcement is stifling to enterprise and does not necessarily honor the dignity of those it is intended to protect.

A distinctive opportunity

Amidst this sorry state of affairs, we see a distinctive opportunity for a new kind of school of business and economics, one that is soundly rooted in the Catholic intellectual tradition and the natural law,⁵ and particularly in a richer understanding of the agent of economic activity, namely the human person. This understanding enables us to generate deeper and more accurate insights into business and economics and a clearer perspective on what is required to form leaders of integrity. The natural law and the Catholic intellectual tradition, including the concepts of the virtues, integral human development,⁶ and the Catholic social doctrine principles of human dignity, solidarity,⁷ subsidiarity⁸ and the common good⁹ are very relevant to business and economics. Together, they help us to put the human person at the center of economic life.

Will our commitment to the Catholic Intellectual Tradition exclude us from serious academic debate—will we be only “preaching to the choir?”  We do not think so. An important part of the attractiveness of these ideas is that, since they are all rooted in the natural law, they are accessible to those who do not share the Catholic faith. By conforming to the highest scholarly standards we are able to communicate the insights arising from our work in ways that makes them accessible and appealing to others who are not formed by, nor perhaps even aware of, the Catholic intellectual tradition. A person-centered approach to business and economics should be appealing to persons of all faiths and none.

By using our research to develop more person-centered approaches to business and economics, teaching these approaches to our students, and sharing them with the academic, business, and economic policy communities, we aspire over time to reintegrate morality into the economy and thus make a significant contribution to improving economic life in the US and in the world.  In doing so, we believe that we will establish a distinctive brand for our school, one that will draw in students, faculty, and donors who see the attractiveness and potential of this approach. 

Will a distinctive positioning of person-centered business mean that we will develop a reputation as a “do-gooder” school that graduates students who have good intentions but who are not as competitive in the business world?  Will our students have a disadvantage in competing for jobs?  We do not think so. Extensive research shows that people-centered businesses are more sustainably profitable¹⁰—but it takes courage and commitment to resist the temptation to pursue short-term results at the expense of people.  Our goal in part is to help students develop that courage and commitment.

Our experience with our new graduate programs is that a person-centered approach actually increases students’ marketability.  And why should that be a surprise?  What employer wouldn’t want to hire someone who was trustworthy, committed, and capable of analyzing complex situations according to a reliable set of principles and acting accordingly? 

Catholic University as an ideal home for this opportunity

Why is The Catholic University of America an ideal home for this new approach to business and economics education and scholarship?  There are three reasons for this.  First, we are already doing it.  We have a core group of faculty who are deeply committed to, and passionate about, building a person-centered economy.  We have already started to do this work and we are receiving positive results. This is evident in the new graduate programs we have developed, in our commitment to liberal arts education as a core part of forming great business leaders, in our research, and in our outreach. Second, as the national university of the Catholic Church in America, it seems important that we be able to contribute to the national discussion about the complex economic challenges facing the country; a school enables us to do this with greater credibility.  Finally, as a new school we do have the opportunity to do something different.  Unlike other Catholic business schools, who have large faculties committed to existing approaches to business and economics, our department is small enough that we can pursue this original and much needed direction.

Accreditation

In order to succeed as a school, it is important for us to pursue and achieve specialized accreditation for business education from the AACSB.  All our current and aspirational competitors are all either already accredited by AACSB or have almost completed the accreditation process.  BusinessWeek, which publishes the most widely quoted rankings of undergraduate business schools, will not rank a school that is not AACSB accredited. 

Graduate Programs

What graduate programs could a new school launch successfully?  In particular, should we launch a Master of Business Administration (MBA) degree? There appears to be a glut of MBA programs; applications have declined for four straight years.  At the same time, applications to more specialized graduate business degrees continue to grow.¹¹  We have focused on specialized degrees for our entry into graduate programs, beginning with our one-year Master of Science in Business Analysis (MSBA) program, launched in 2010.  In each case, we have ensured and will continue to ensure that our programs fill attractive niches and have clear points of distinctiveness versus competing programs.  For the MSBA, these are: teach business analysis to liberal arts students; incorporate Catholic Social Doctrine into the entire program; and obsess about career guidance and job placement (including requiring a part-time internship throughout the program and providing one-on-one mentoring from local area CEOs and senior executives). For our second program, the Master of Arts in Integral Economic Development Management (IEDM) program, which debuted in 2011, the three points of distinctiveness compared to competing economic development programs are the integral economic development perspective, a managerial orientation, and a quantitative measurement focus. 

Our next new program, the Master of Science in Market Research (MSMR), will have the following points of distinctiveness: focus on consultative (versus purely quantitative) skills; focus on data gathering and analysis from social media (in addition to traditional survey methods); and a humane attitude to the consumer (rather than the somewhat dehumanizing attitudes of much of contemporary market research). 

We do plan subsequently to launch an MBA program, and once again the key to success will be distinctiveness.  We are developing a plan for a Global MBA whose first point of distinctiveness will be that it is more global than any other program available.  Candidates will begin and end their studies here in Washington DC, and then spend most of their time studying at partner universities on every continent.¹²  Its second point of distinctiveness is its cohesive Catholic orientation; partner universities will all be universities that share our mission.  Its third point of distinctiveness is cost effectiveness.  Since tuition rates at our partner schools are significantly lower than ours, we expect to be able to pass some of the savings on to students, so that while they are earning a US degree they will be paying significantly lower tuition. 

Risk Assessment

The creation of a new School of Business & Economics is not without risks.  We have highlighted three challenges that we must overcome to be successful, and our approach to overcoming them.  These are:

1. An ongoing weakness in the national economy, combined with the large number of established players in business and economics education, means that the proposed school must develop a well-defined brand by providing a distinctive offering to a clearly defined niche. We believe that our focus on a person-centered economy will allow us to do exactly this.

2. An apparent nation-wide decline in math and writing abilities among College-age students requires that the School must appeal to and focus its recruitment on the best-prepared and motivated students, and provide them with the necessary support for effective higher education in business and economics.

3. Hiring sufficient new faculty who combine world-class scholarly preparation (Ph.D. from leading schools), significant real world business/economics experience, a talent for teaching, and a passion for our Catholic mission requires the School to move aggressively to identify the best candidates and attract them by offering a collegial environment uniquely focused on a research mission of importance to them, and competitive compensation packages.

Given the uncertainties inherent in business education in the twenty-first century, we will ensure that the new School is designed to be agile and entrepreneurial.  There is a wealth of actual entrepreneurial experience among our faculty, staff, and advisory board, and we believe that our agility is demonstrated by our accomplishments over the past few years, in terms of creation of new programs and identification and recruitment of new faculty and staff. 

Strategic Plan

The strategic plan contains eight priorities organized into three strategic thrusts: (1) Organize for Growth, (2) Improve Capabilities, and (3) Raise Academic Ranking. 

1. Organize for Growth

• Establish a school of business and economics oriented towards promoting a person-centered economy, and inspired and guided by the natural law and the Catholic intellectual tradition

• Raise development funds to support new scholarships, new academic chairs, and a dedicated building

• Attain accreditation by the AACSB

2. Improve Capabilities

• Implement Systems for Success: Design the school to be agile, fiscally responsible, and entrepreneurial in nature

• Increase number of full-time faculty and collectively deliver on our high standards for scholarship, teaching, business experience, and passion for the Catholic mission

• Maintain a strong practical orientation and job-focus (whether business or academic jobs) in all our programs, and communicate this aggressively to prospective students and parents

3. Raise Academic Ranking

• Improve academic profile of undergraduate students and direct them towards most employable majors

• Add distinctive new programs, characterized by our unique perspective and by strong employment opportunities

Rationale for the Creation of a School of Business & Economics

We summarize here what we believe are the three main reasons for creating a School of Business & Economics at The Catholic University of America.

1.    Provide an important contribution towards fulfilling the mission of the University. A school of business & economics committed to a person-centered economy and grounded in the Catholic intellectual tradition will provide a richer and more mission-focused educational experience for our students. It will also allow the University to bring the fertile resources of this tradition to bear upon the important discussions about the economic future of the country, though faculty research and by graduating students who will exemplify virtuous behavior in economic life. 

2.    Fill an important niche in business and economics research and teaching. Despite the importance and fruitfulness of the insights contained in the Catholic intellectual tradition for business and economics scholarship, none of the business schools at Catholic universities in the US are oriented towards integrating the Catholic intellectual tradition and the natural law throughout their research and teaching.

3.    Offer an opportunity to strengthen financial contribution to the University through improved enrollment and new development funds. Our new graduate programs, while already successful, are limited in their growth by the absence of a school of business. At the undergraduate level, we regularly lose attractive candidates who do not believe that a university without a school of business can be serious about business education.  All of our main competitors have business schools, and all are accredited by the AACSB. While our enrollment is strong, we remain vulnerable to competition and do not anticipate much further enrollment growth in our current status as a department. The creation of a school will improve the growth potential for both our undergraduate and graduate programs.

Potential donors appear to be very interested in the prospect of a school of business at The Catholic University of America. Unnamed business schools at nationally ranked universities are very rare, and this scarcity means that naming gifts tend to be very large.

Our expectation is that the School of Business & Economics will be neither a strategic investment that competes for already scarce financial resources, nor a “cash cow” that generates such resources but other than that makes no strategic contribution to the university. We intend that over time the school will be able to make a strategic contribution to the University, Church, and nation, while paying its own way and generating a surplus financial contribution to the rest of the university. 

Proposal

We propose that the University approve the creation of a School of Business & Economics prior to the Fall 2013 semester.  This school will bring the richness of the Catholic intellectual tradition to bear in its research, teaching, and service for the promotion of a person-centered economy, in service to Church and nation.

1. What follows is the original text, with some light editing.

2. We extend our deep gratitude to all those who have provided feedback on earlier drafts of this proposal, including especially members of the Executive Committee of the Board of Trustees and of the Deans’ Council. This feedback was invaluable.

3. Cf. Amartya Sen, Ethics and Economics, 1987, R. Edward Freeman, “The Politics of Stakeholder Theory.” Business Ethics Quarterly. Vol. 4:4 (1994): 409-421 .

4. Cf. Sumantra Ghoshal, “Bad Management Theories Are Destroying Good Management Practices.” Academy of Management Learning & Education. Vol. 4:1 (2005): 75-89.

5. Natural law is the idea that the moral order is objectively derived from the nature of human beings and of the world. Cf. Alberto Piedra, Natural Law: The Foundation of an Orderly Economic System.

6. Integral human development is an approach to economic activity, grounded in the Social Doctrine of the Church and in the natural law, which incorporates an integrated view of the person in society and in the economy and acknowledges that the human person must be at the center of economic analysis. Integral human development “affirms that human development cannot be reduced or separated into component parts. … personal wellbeing can only be achieved in the context of just and peaceful relationships and a thriving environment.” (http://www.crsprogramquality.org/ihd/; also cf. especially Pope Benedict XVI, Caritas in Veritate, which uses the phrase “integral human development” more than twenty times, including in the title of the encyclical.)

7. Solidarity is “is not a feeling of vague compassion or shallow distress at the misfortunes of so many people, both near and far. On the contrary, it is a firm and persevering determination to commit oneself to the common good; that is to say to the good of all and of each individual, because we are all really responsible for all.” Pope John Paul II, Sollicitudo Rei Socialis, 38.

8. The principle of subsidiarity states that “a community of a higher order should not interfere in the internal life of a community of a lower order, depriving the latter of its functions, but rather should support it in case of need and help to coordinate its activity with the activities of the rest of society, always with a view to the common good.” Catechism of the Catholic Church, 1883.

9. The common good is “the sum total of social conditions which allow people, either as groups or as individuals, to reach their fulfillment more fully and more easily.” (Gaudium et Spes, 26).

10. See, among others, Jeffry Pfeffer, The Human Equation, 1998.

11. “B-School Applicants Decline for Four Years”, Wall Street Journal, 9/17/2012, http://online.wsj.com/article/SB10000872396390444433504577651962999932518.html

12. Except Antarctica