Are business schools priming students for a world that no longer exists?

Endless economic expansion isn’t sustainable. Scientists are telling us our planet is already beyond its limits, with the risks to communities and the economy made clear in the federal government’s recent climate risk assessment.

Sustainability is a hot topic in Australian business schools. However, teaching about the possible need to limit economic growth – whether directly or indirectly related to sustainability – is uncommon.

Typically, business school teaching is based on concepts of sustainable development and “green growth”. Under these scenarios, we can continue to grow gross domestic product (GDP) globally without continuing to grow emissions – what is known as “decoupling”. It’s a “have your cake and eat it too” promise for sustainability.

Our new research published in the journal Futures shows business students themselves are interested in learning the skills they would need under an alternative post-growth future.

Emerging alternatives to ‘growth is good’

There is mounting evidence of the difficulty of “decoupling” economic growth from emissions growth. The United Nations goals of sustainable development are “in peril”.

This has led to increased interest in no-growth or post-growth economic models and to the movement towards degrowth. Degrowth means shrinking economic production to use less of the world’s resources and avoid climate crisis.

Explicit teaching of degrowth rejects the belief in endless growth. This presents a challenge to traditional concepts in business education, including profit maximisation, competition and the notion of “free markets”.

The issue, and one that degrowth invites students to consider, is that green growth and sustainable development are underpinned by the need for continued economic growth and development. This “growth obsession” is pushing the planet and society to its limits.

Students are keen

Our new study provides a snapshot of students’ interest in alternative systems. It reveals 90% of respondents are open to learning about different economic models.

The study found 96% of students believe business leaders must understand alternative models to continued economic growth. Yet only 15% were aware of any alternatives that may exist. Most (71%) believed viable alternatives exist, but they admitted to lacking sufficient knowledge.

The study had 61 participants currently studying a masters of business administration (MBA) in a top Australian institution.

The research raises the question: if future business leaders are not made aware of alternatives, won’t they continue to assume growth is “inherently good”, and perpetuate the business practices that have pushed humanity beyond planetary boundaries?

The trouble with endless growth

Advocates of the “beyond growth” agenda argue endless growth is not possible. They promote alternate measures of progress to GDP, such as the recent Measuring What Matters report.

Degrowth proposes scaling back the consumption of resources as part of a transition to post-growth economies. Their aim is what economist Tim Jackson calls prosperity without growth. This entails businesses sharing value with communities, and reducing production of things like fast fashion, fast food and fast tech.

It is a rejection of maximising profit in favour of maximising value, based around meeting real needs like housing, food and essential services. Some industries would grow, such as care, education, public transport and renewables. Others may shrink or vanish.

Degrowth and post-growth aren’t alien concepts. There are grassroots movements such as minimalism. Social media abounds with lists of “things I no longer buy”, social enterprises, the right-to-repair movement and community-supported agriculture.

Degrowth also invites students to debate concepts like modern monetary theory, income ratio limits and universal basic income.

The role of business schools

Business schools are doing great work teaching students about changing consumer preferences for green alternatives, new global standards for reporting environmental and social impact, and ways businesses can reduce their environmental impact.

The Australian Business Deans Council in March this year detailed these efforts in its Climate Capabilities Report. This highlighted the need for business schools to produce graduates capable of “balancing business and climate knowledge”.

Our study of Australian business school students shows they are open to learning about degrowth. It challenges the assumption that ideas critical of endless growth would be unwelcome in business schools in Australia.

There is an argument for making explicit degrowth teaching in business schools more accessible because business schools have been criticised for not doing enough to address climate change and social inequality.

Globally, degrowth is starting to be taught explicitly in business schools in Europe, the UK and even the US.

Business schools have long been criticised for a culture of greed and cutthroat competition. As one distinguished professor from the University of Michigan recently put it, “today’s business schools were designed for a world that no longer exists”.

The introduction of no growth or degrowth scenarios to business schools in Australia may go some way to ensuring they are preparing leaders for the future – not priming students for a world that no longer exists.