The current crisis has come at a cost not only for big business but also for business schools. Business schools have been deemed largely responsible for developing and teaching socially dysfunctional curricula that, if anything, has served to promote and accelerate the kind of ruthless behavior and lack of self-restraint and social irresponsibility among top executives that have been seen as causing the crisis. As a result, many calls have been made for business schools to accept their responsibilities as social (...) institutions and to work toward becoming more socially embedded and better attuned to public interests. In this paper, however, we point to some of the barriers there may be in the way of business schools developing into responsible organizational citizens proper. We argue that there are lines of resistance against responsibilization operating at epistemological, institutional, and organization levels and that we need to take account of barriers on all these levels in order to properly capture the challenges that are involved in making the modern business school amenable to demands for more social responsibility. In terms of working toward overcoming such barriers, we discuss how business education can become more socially embedded via the inclusion of ethical reflection and critical thinking. (shrink)

Islamic financing instruments can be categorised into profit and loss/risk sharing and non-participatory instruments. Although profit and loss sharing instruments such as musharakah are widely accepted as the ideal form of Islamic financing, prior studies suggest that alternative instruments such as murabahah are preferred by Islamic banks. Nevertheless, prior studies did not explore factors that influence the use of Islamic financing among non-financial firms. Our study fills this gap and contributes new knowledge in several ways. First, we find no evidence (...) of widespread use of Islamic financing instruments across non-financial firms. This is because the instruments are mostly used by less profitable firms with higher leverage. Second, we find that profit and loss sharing instruments are hardly used, whilst the use of murabahah is dominant. Consistent with the prediction of moral-hazard-risk avoidance theory, further analysis suggests that users with a lower asset base are associated with murabahah financing. Third, we present a critical discourse on the contentious nature of murabahah as practised. The economic significance and ethical issues associated with murabahah as practised should trigger serious efforts to steer Islamic corporate financing towards risk-sharing more than the controversial rent-seeking practice. (shrink)

This paper argues that the MBA, probably the most successful academic program of the last 50 years, negatively affects the theory and practice of management with regard to ethics through its pedagogy, structure, and its underlying epistemic assumptions. In particular I seek to demonstrate how the syllabus, the pedagogy and the epistemological assumptions of MBA programs together make managers/leaders unable and unwilling to deal with ethics. I also argue that while the what and the how play a very important role, (...) it was only the emergence of a radical philosophical underpinning that has put management education on a negative trajectory. The paper thus examines MBA education from a meta-level perspective, connecting the pedagogical model with epistemological beliefs. (shrink)