Business School and the Noble Purpose of the Market

Andrew J. Hoffman is the Holcim (US) Professor at the University of Michigan's Ross School of Business. He has published 18 books and over 100 articles /book chapters. His work has been covered in The New York Times, Scientific American, Time, Wall Street Journal, Atlantic, and National Public Radio.

List of Illustrations and Tables Preface: Why I Am Writing This Book Now PART I: Rethinking the Purpose of Business Education 1. BUSINESS SCHOOLS ARE BROKEN: It's Time to Fix Them The Market's Failures in Our Natural and Social Environments The Market Can Be Corrected to Fix These Failures Business Education Is not Rising to the Challenge How Did Business Schools Lose Their Way It's Time to Rejuvenate Business Education Education That Is Both Business-Centric and Market-Centric 2. THE IMPLICATIONS FOR STUDENTS Today's Students Are Different Get the Most Out of Your Education Today Bring Your Whole Self to Business Education Advocate for Tomorrow's Students 3. THE ROLE OF FACULTY AND ADMINISTRATORS Recommit to the Reasons Why You Chose to Enter Academia Become an "Elder The Time Is Now: Students Are Ready and Waiting PART II: Capitalism, Business, and the Market: The Old Paradigm and the New 4. THE COMING END OF SHAREHOLDER CAPITALISM A Short History of American Capitalism The Failures of Shareholder Capitalism A New Capitalism Will Emerge from the Old 5. BRINGING ADAM SMITH INTO THE PRESENT: Reexamining the Fundamentals of Capitalism The Foundations of Capitalism Enduring Critiques of Capitalism Support and Critique of Capitalism in the Twenty-First Century It's Time to De-Mythologize the Free Market and the Invisible Hand Train Business Leaders to Be Stewards of the Market 6. ALTERNATIVE CAPITALISMS AROUND THE WORLD Two Categories of Market Economies Differentiating Facets of Market Economies The Nordic Model Views of Capitalism Across the Political Spectrum Our Current Problems Are Not Endemic to Capitalism 7. THE PURPOSE OF THE FIRM: It's Not to Make Shareholders Rich, It's to Serve Customers and Society The View of the Firm from Economics The View of the Firm from Law The View of the Firm from Sociology and Management Practice Why Is the View from Economics so Dominant Redefining the Purpose of the Firm Stakeholder Capitalism The Tyranny of Shareholder Primacy PART III: The Crucial Role of Government in the Marketplace: Corporate Political Responsibility, Constructive Lobbying, and a New Role for Government 8. HOW MONEY CORRUPTS HEALTHY GOVERNMENT AND DEMOCRACY: Why the Corporation Is Not a "Natural Person" A Brief History of Corporate Personhood The Citizens United Decision The Basis for Citizens United The Effects of Citizens United Our Founders' Fear: Artificial Legal Entities with Perpetual Life 9. THE NECESSARY AND CONSTRUCTIVE ROLE OF BUSINESS IN POLICYMAKING . . . and the Need for Guardrails Lobbying: The Fifth Estate A Short History of Lobbying Today's Complex Battleground for Influence Cynicism and Disenchantment A Voluntary Solution: Corporate Political Responsibility A Mandatory Solution: Insulating Government from Corporate Power Political Skills Needed for Twenty-First-Century Business 10. THE NECESSARY AND CONSTRUCTIVE ROLE OF THE GOVERNMENT IN THE MARKET: Not More or Less Government, the Right Level of Government Early Views of the Role of Government in the Market The Public's Negative View of Government's Role in the Market Towards a More Collaborative (and Realistic) Partnership A New Role for Government in a Twenty-First-Century World Markets Do Not Work Without the Government . . . and Effective Policies Work Best in Concert with the Private Sector PART IV: Business School Built on a Balanced Curriculum 11. OUTDATED BUSINESS SCHOOL PRINCIPLES AND CONCEPTS: Efficiency, Value, Prosperity, and Metrics Technology Alone Will Not Solve Society's Challenges Rethinking What Business Strives For: Efficiency, Value, Prosperity, and Metrics Reimagining How Business Provides Benefit: Competition and Trade Reexamining Limits on the Market: Growth and Consumption Bringing Systems Thinking into Business Education A New Kind of Business Curriculum 12. THE NOBLE CALLING OF BUSINESS AND BUSINESS EDUCATION The Values in Today's Business Schools Where These Values Lead Us Astray Today's Business Students Are Changing the Face of Business Education Envisioning a New Set of Values to Guide Business Education Helping Business Students Find Their Purpose and Calling The Positive Outcomes of Finding a Calling in Management Make the Pursuit of a Calling and Purpose the Norm A New Kind of Business School Acknowledgments About the Author Notes Index

"Hoffman's book should be read by every dean, every chair, and every professor of every business school. We should be discussing, debating, and coming to grips with what it means and what we should do." -Peter Tufano, Former Dean of the Said Business School, Oxford University; Professor, Harvard Business School "This book outlines what I wish my MBA curriculum had taught me and what I had to learn on my own - how to get an MBA education while keeping your morality and optimism intact. Its impact can't be understated - it is a life preserver to save business schools from themselves, so that they can continue to attract the best and brightest business leaders." -Anya Shapiro, MBA 2022; Lead Business Designer, IDEO "An urgent call for students and educators to rethink business education and lead the necessary re-foundation of business around purpose, people and planet. This book is an encouragement, a provocation, and an inspiration." -Hubert Joly, Former CEO of Best Buy; Senior Lecturer, Harvard Business School; Author of The Heart of Business "As a former business school dean who fought tirelessly to reform business education, I loved this book. It is beautifully written and provides great insights into why the current teaching model for business education is broken, and what to do about it." -Ann Harrison, Former Dean of the Haas School of Business, University of California Berkeley "An important addition from a leading academic on the debate over how to overhaul management education." -Andrew Jack, Global Education Editor, Financial Times "Offers profound and transformational ways for business schools to catch up to 21st century corporate realities. This is the intellectual foundation for the next generation of business leaders. Society needs it, industry is ready for it, and students are demanding it." -Paul Polman, Former CEO of Unilever; Co-Author of Net Positive: How Courageous Companies Thrive by Giving More Than They Take "Professor Hoffman is bringing one of capitalism's core tenets, creative destruction, to business schools. He is offering a curriculum that the next generation of students need and demand." -Caroline Chisolm, MBA 2023; Senior Consultant, EY-Parthenon "How do we transform a market system that is responsible for the climate crisis and social injustice? Andrew Hoffman's recommendations for business education are both radical and pragmatic. While warning about the inefficiency of small peripheral changes, he does not advocate for a tabula rasa. Instead, acknowledging the versatility of capitalism, he advocates for a move beyond shareholder capitalism and urges business schools to place nature and social justice at the heart of their curriculum. His book is a tremendous source of inspiration for any academic and business leader, teacher, or student passionate about transforming business schools and driving meaningful change in the business world." -Laurent Muzellec, Dean of the Trinity Business School, Trinity College Dublin "Rigorous, accessible, and full of good ideas. With clear moral urgency, Hoffman outlines how unfettered capitalism is risking the future of life on this planet, notably through environmental collapse and political unrest borne of gross economic disparities. This book shows why business schools have failed to address these facts, and how we can fix that. I'd recommend this to any business student or business leader. A new capitalism, outlined here, might reacquaint managers with the social purpose of our work. It might also give us a future." -John Benjamin, MBA 2018; Startup Operator and Business Writer for Time, The New Republic, and Barron's "Makes a compelling case for rethinking the core principles taught in business schools to address the pressing challenges of our planet. A call to action for educators, policymakers, and business leaders, this book is a blueprint for creating a more equitable and resilient future." -Andre Hoffmann, Vice-Chair of Roche; Co-Author of The New Nature of Business: The Path to Prosperity and Sustainability "As an MBA student coming from a military and nonprofit background, I feared I might have to compromise my values to succeed in business. However, Professor Andrew Hoffman's work is a beacon of hope in what sometimes seems like a bleak tomorrow." -Akbar Arsiwala, MBA 2024; Navy Veteran; Senior Marketing Associate, Nike "Andy Hoffman is one of the world's most thoughtful and impactful critics of higher education in business and management. There is as much in this work with which I disagree -sometimes strongly - as there is with which I agree. I predict it will move your priors, as it did mine. This conversation must be had and now." -Andrew Karolyi, Dean and Professor, SC Johnson College of Business, Cornell University; Board Chair, Responsible Research in Business & Management "A piercing wake-up call for business education to cultivate a new type of leader; one who creates both prosperity and purpose, serving shareholders and society alike. To read it as a business student is to discover a renewed vision of capitalism as a powerful force for good." -Eli Forrester, MBA 2024; Co-Founder and COO, Volta "I would highly recommend this book to all academic leaders wanting to understand the disconnect between the curricula of leading business schools and the major societal and environmental challenges the world and businesses face. Hoffman argues that most business schools have merely dropped an elective or two as a saddlebag onto the problematic traditional curriculum. As a business school Dean for the past over 18 years, I can confidently state that the barriers as stated in the book can be overcome by courage and leadership." -Sanjay Sharma, Dean of the Grossman School of Business, University of Vermont "If you're enrolled in business school, or already have an MBA, you should read this book. It questions the role that business schools play in training and influencing future generations of leaders. Will we idly stand by and hope that today's business school programs, curriculums and cultures will equip students to wrangle complex problems around climate change and capitalism's 'externalities?' Or can we harness and redirect the ambition of business school education? Hoffman's book gives us this vision." -Amelia Brinkerhoff, MBA 2022; Senior Associate, Sustainability & Climate Transformation Consulting, PwC