LEADERSHIP, BUSINESS SCHOOLS AND FINANCIAL CRISES: THE SEARCH FOR A MISSING LINK
Abstract
Business schools produce leaders who command ‘power’ and ‘governmentality’, as per Foucault’s theoretical conceptualisations, to institutionalise routines and social practices in contemporary organisations. These leaders must uphold ethics in their business decisions; however, this has not been reflected in many instances, as recurring financial crises have depicted over time.
Ettorts to address the issue and reach its root cause have failed to deliver concrete results so far, which necessitates an objective probe into today’s business education. This conceptual-cum- analytical paper proposes an alternate, indirect approach to ettectively tackle the issue.
We suggest two remedies: first, transformative teaching and learning activities that inculcate ethical values into students should be implemented at the grass root level – primary and secondary schools, that feed into business schools with future business leaders; second, a conducive corporate governance environment within business organisations that supports ethical decisions and nurtures ethical behaviour needs to be developed – arguably the first being the prerequisite for the second.
Downloads
References
Acharya, V., Philippon, T., Richardson, M. and Roubini, N. (2009) The Financial Crisis of 2007-2009: Causes and Remedies, New York University Salomon Center and Wiley Periodicals, Inc.
Anari, A., Kolari, J. and Mason, J. (2005) Bank Asset Liquidation and the Propagation of the U.S. Great Depression. Journal of Money, Credit and Banking, 37(4) pp 753-773.
Arena, M. (2008) Bank Failures and Bank Fundamentals: A Comparative Analysis of the Latin American and East Asia During the Nineteen Nineties Using Bank-level Data. Journal of Banking and Finance, 32 pp 299-310.
Barrell, R. and Davis, E.P. (2008) The Evolution of Financial Crisis of 2007/8, National Institute Economic Review: SAGE.
Benson, J.K. (1977). Organizations: A Dialectical View. Administrative Science Quarterly, 22(1) pp 1-21.
Bernanke, B.S., Gertler, M. and Simon, G. (1996) The Financial Accelerator and the Flight to Quality. The Review of Economics and Statistics, 78(1) pp 1-15.
Bernanke, B.S. (1995) The Macroeconomics of the Great Depression: A Comparative Approach. Journal of Money, Credit and Banking, 27(1) pp 1-28.
Bordo, M.D., Choudhri, E.U. and Schwartz, A.J. (1995) Could Stable Money Have Averted the Great Contraction? Economic Inquiry, 33(3) pp 484-505.
Burbidge, J. and Harrison, A. (1985) An Historical Decomposition of the Great Depression to Determine the Role of Money. Journal of Monetary Economics, 16(1) pp 45-54.
Burns, J. and Scapens, R.W. (2000) Conceptualizing Management Accounting Change: An Institutional Framework. Management Accounting Research, 11 pp 3-25.
Caballero, J.R. and Krishnamurthy, A. (2009) Global Imbalances and Financial Fragility. NBER Working Paper No. 14688, National Bureau of Economic Research.
Campanale, C., Cinquini, L. and Tenucci, A. (2010) Do Management Accounting Systems Influence Organizational Change or Vice-Versa? Evidence from a Case of Constructive Research in the Healthcare Sector. Social Science Research Network. Retreived: 27 May 2012 from http://dx.doi.org/10.2139/ssrn.1656943.
Caprio, G., Klingebiel, D., Laeven, L. and Noguera, G. (2003) An Update of the Caprio-Klingebiel Database, 1996, 1999, Banking Crises Database, Octobor.
Cecchetti, S.G. and Karras, G. (1994) Sources of Output Fluctuations During the Interwar Period: Further Evidence on the Causes of the Great Depression. The Review of Economics and Statistics, 76(1) pp 80-102.
Chen, Y. and Hasan, I. (2008) Why Do Bank Runs Look Like Panic? A New Explanation. Journal of Money, Credit and Banking, The Ohio State University, 40(2-3) pp 535-546.
Coe, P.J. (2002) Financial Crisis and the Great Depression: A Regime Switching Approach. Journal of Money, Credit and Banking, 34(1) pp 76-93.
Cole, H.L. and Ohanian, L.E. (2000) Re-Examining the Contributions of Money and Banking Shocks to the U.S. Great Depression. Federal Reserve Bank of Minneapolis. Retreived: 16 February 2012 from http://minneapolisfed.org/research/sr/sr270.pdf
Collier, P. (1993) Factors Affecting the Information of Audit Committees in Major UK Listed Companies. Accounting and Business Research, 23 pp 421-430.
Cortese, A. (2003). The Critical Role of Higher Education in Creating a Sustainable Future. Planning for Higher Education, (March-May), pp 15-22.
Covaleski, M. A. and Dirsmith, M.W. (1988) An Institutional Perspective on the Rise, Social Transformation, and Fall of a University Budget Category. Administrative Science Quarterly, 33 pp 562-587.
Currie, G., Knights, D. and Starkey, K. (2010) Introduction: A Post –Crisis Critical Reflection on Business Schools. British Journal of Management, 21 pp S1-S5.
Datar, S. M., Garvin, D.A. and Cullen, P.G. (2011) Re-Thinking the MBA: Business Education at a Crossroads. Journal of Management Development, 30(5) pp 451-462.
Davis, E.P. and Karim, D. (2008) Could Early-Warning Systems Have Helped to Predict the Sub-Prime Crisis? National Institute of Economic Review, 206, Octobor.
Dekle, R. and Kletzer, K. (2003) The Japanese Banking Crisis and Economic Growth: Theoritical and Empirical Implications of Deposit Guarantees and Weak Financial Regulation. (March 2003), Working Paper No. 03-7UC, Santa Cruz Economics.
Demirguc-Kunt, A. and Detragiache, E. (2005) Empirical Analysis of Causes and Consequences of Banking Crisis. National Institute Economic Review, April.
Diamond, D.W. and Rajan, R. (2009) The Credit Crisis: Conjectures About Causes and Remedies. NBER Working Paper Number 14739, 1-15. Retreived: 16 February 2012 from http://www.nber.org/papers/w14739.
Diamond,W.D. and Rajan, R. (2001) Banks, Short Term Debt and Financial Crises: Theory, Policy Implications and Applications. Carnegie-Rochester Conference Series on Public Policy, 54 pp 37-71.
Dillard, J., Rogers, R. and Yuthas, K. (2011) Organizational Change: In Search of the Golden Mean. Journal of Accounting and Organizational Change, 7(1) pp 5-32.
DiMaggio, P.J. and Powell, W.W. (1983) The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48 pp 147-160.
Eichengreen, B. (2002) Still Fettered After All These Years. NBER Working Paper Number 9276. 1-15. Retreived: 16 February 2012 from http://www.nber.org/papers/w9276.
Eichengreen, B. (2004) Viewpoint: Understanding the Great Depression. The Canadian Journal of Economics, 37(1) pp 1-27.
Erakovic, L., and M. Wilson (2005) Conditions of Radical Transformation in State-Owned Enterprises. British Journal of Management, 16 pp 293-313.
Evans, P., Hasan, I. and Tallman, E.W. (2004) Monetary Explanations of the Great Depression: A Selective Survey of Empirical Evidence. Federal Reserve Bank of Atlanta Economic Review, Third Quarter.
Fackler, J.S. and Parker, R.E. (1994) Accounting for the Great Depression: A Historical Decomposition. Journal of Macroeconomics, 16(2) pp 193-220.
Fisher, I. 1933. ‘The Debt-Deflation Theory of Great Depressions’, Review of the International Statistical Institute, 1(4) pp 48-65.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2013 The journal of contemporary issues in business and government
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
