Should Business Schools Be Blamed for the Financial Crisis?

Should Business Schools Be Blamed for the Financial Crisis?

1 Introduction

Apart from an overall economic turmoil aroused by a subprime mortgage crisis and its subsequent financial crisis, business schools are also facing challenges, queries, reflection, and opportunities. Judging by externals, the causes of this crisis seem to be an unlimited development of financial derivatives, the lack of a systemic governmental supervision on financial innovation, and excessive consumer demands in the United States; while in essence, it is also indicates that endless greed and failure of self-discipline, which both are frailties hidden in the human nature, can generate severe consequences. Thus, voices of public criticisms against business schools are raised, for it is those elites who had graduated from these schools with high credit around the world created and operated various financial derivatives. Why have there been so many executives who previously studied in celebrated business schools getting involved into this crisis? Should they deserve the blame for the crisis?

Throughout the following part, this essay aims to provide answers to the above questions. Firstly, a concise analysis in the field of the leading causes would be carried out. Afterwards, from what the author provided to elucidate the corporate social responsibility (CSR) development, conclusions would be drawn.

2 The Leading Causes of Financial Crisis

Harvey (2010: online) stated that there are four genres in terms of the issue: human frailty, institutional failures, obsessed with a false theory and finally cultural origins. [1] Human frailty refers to all the negative sides of human nature, for instance, predatory instincts, desire for control and greed. Institutional failures means that low efficiency and inaction of regulators have resulted in innovations beyond the authority by shadow banking system. The third genre, which has been defined as delusions from a false theory, points out the problem...