Peter F. Drucker and Masatoshiitograduateschool of Management

PETER F. DRUCKER AND MASATOSHIITOGRADUATESCHOOL OF MANAGEMENT

COMMUNICATION ON PROGRESS REPORT

2008-2010

The Mission of the Peter F. Drucker and MasatoshiIto

GraduateSchool of Management

We achieve our purpose by developing and enriching the professional lives of our students:

• Enhancing their ability to think rigorously and ethically about complex, ambiguous issues, to make sound strategic decisions, and to lead and inspire others to achievement of common purposes
• Providing a personalized and practical, yet reflective learning experience
• Instilling intellectual curiosity and learning skills that will sustain a lifelong search for understanding and openness to innovation and change

We also achieve our purpose through relentless efforts to create and disseminate knowledge relevant to critical issues affecting management practice worldwide:

• By promoting integrative and interdisciplinary research that advances management theory and translates it into successful practice.
• By initiating and conducting intensive worldwide dialogues with management scholars and practitioners with whom we collaborate in order to advance the practice of management.

A word from the Dean

In January of 1999 I was a witness to history in Davos, Switzerland when then UN Secretary General Kofi Annan first unveiled his powerful concept of business, government, and civil society organizations voluntarily advancing together a united agenda of human, environmental, and labor rights through a proposed Global Compact.In July of 2000 I attended the first official convening of the UN Global Compact at the General Assembly in New York City.

In 2007, I had the honor of being on a taskforce of 60 deans, university presidents, and official representatives of leading business schools under the United Nations Global Compact.In the summer of that year, in Geneva, Switzerland, a group of us on the task force met with current UN Secretary General Ban ki-Moon to formally present the product of our work: Principles for Responsible Management Education.In January of 2008, the Peter F. Drucker and Masatoshi Ito Graduate School of Management at ClaremontGraduateUniversity became a signatory of the Principles of Responsible Management Education (PRME) initiative.I now have the privilege, along with Deans Pierre Tapie of ESSEC and Carolyn Woo of Notre Dame, of serving as co-chair of the AACSB Affinity Group for PRME.

In a climate of ethical challenges and increased globalization, today's business and industry leaders are seeking out individuals who:

• are productive and purposeful
• achieve professional success and positive, sustainable social impact
• understand the importance of strategic thinking and values-based management

Our program infuses Peter Drucker's management principles along with these important skills into many aspects of learning, resulting in graduates who are ethical and effective leaders in a variety of capacities and an array of fields.

At the DruckerSchool, we believe outstanding leadership is an endeavor requiring both character and competence--moral courage as well as analytical insight. Effective leaders make a difference in the lives and institutions they touch by infusing them with high values and bringing definition to common purpose, commitment to strategy, dignity to human interaction, and increased opportunity for creative self-expression.

This Communication on Progress captures our efforts during the 2008-2010 calendar years and includes just a sample of a wide variety of the initiatives undertaken to further the Global Compact principles.

Sincerely,

Ira A. Jackson

Henry Y. Hwang Dean of the Peter F. Drucker and MasatoshiItoGraduateSchool of Management and Professor of Management at ClaremontGraduateUniversity

Principle 1

Purpose: We will develop the capabilities of students to be future generators of sustainable value for business and society at large and to work for an inclusive and sustainable global economy.

CASE AND BUSINESS PLAN COMPETITIONS

– Leeds-Net Impact Competition

In spring of 2009, four Drucker School of Management students finished in first place in the Net Impact national competition.

The competition featured 85 business schools from around the U.S. which was narrowed down to 20 presenting teams. The final presentations were held at the Leeds School of Business at the University of Colorado's Boulder campus. Drucker students were assigned a case study centered around Colorado's Vail ski resort's effort to define its environmental initiative. In winning the competition, the Drucker foursome was awarded a $6,000 cash prize and a chance to present their ideas directly to the Vail senior staff.

The final round challenge consisted of two parts; a charge to increase the number of riders on Vail’s newest acquisition, Colorado Mountain Express (in order to reduce traffic), and a proposal which would increase Vail’s goal of creating a total customer experience while promoting sustainability. After an all-night, 12-hour preparation session, presentations began. Twenty teams of four presented in the morning, and five were selected to present again for the final round in the afternoon.

This is the eighth year that Net Impact has held a national competition. Since 2002, the Net Impact competition has hosted rising business leaders from MBA programs from around the nation to help find innovative solutions to corporate sustainability issues.This Net Impact award is billed as "the premier case format competition built around businesses facing sustainability challenges while succeeding financially."

– Net Impact/Walmart Better Living Business Plan Challenge

The Walmart Better Living Business Plan competition seeks to promote entrepreneurship in the area of sustainability.

Better living will be defined as the actions that we take today that improve quality of life for us, our children, and future generations, including actions that :

• Preserve clean air, water and soil.
• Reduce waste.
• Improve energy efficiency or usage of renewable energy.
• Promote healthy living for people and communities and support biodiversity.

A team of four Drucker Students had made it to the semi-final round of the competition, which was held in Bentonville, Arkansas. They had a chance to compete against seven other regional competition winning teams from the leading universities and to present their business plan to a panel of judges that included industry leaders, non-governmental organizations, and top Walmart executives.[1]

– Henry R. Kravis Business Plan Competition

In conjunction with the naming of the Peter F. Drucker Graduate School of Management, Henry R. Kravis, a founding member of the Board of Visitors, established a $175,000 endowment fund. Each year the income from this endowment is awarded to the student(s) or alumni, if any, who demonstrate real promise as entrepreneurs. Awards are made by a committee of judges comprised of practitioners involved in entrepreneurial ventures and venture capital.[2]

STUDENT CLUBS

– Net Impact

Originally founded as Students for Responsible Business in 1993, Net Impact is a network of business leaders in a unique position to influence what happens in society for years to come. With this power comes monumental responsibility. We can choose to ignore this responsibility, and thereby exacerbate problems such as economic inequality, environmental degradation, and social injustice – problems that will compromise our ability to do business in the long run. Or, as business leaders, we can realize our potential to create lasting social change.

The projects have included:

• Hosting Mark Albion, co-founder of the Social Venture Network and Net Impact, former Harvard Business School professor, and author of “Making a Life, Making a Life,” as well as “More than Money: Questions Every MBA Needs to Answer.”
• Organizing community service projects
• Promoting and participating in various business plan competitions
• Hosting a lecture with Gregg Vanourek, entrepreneur and author of “Life Entrepreneurs”

– Women in Leadership Association

The Drucker Women in Leadership Association (WILA) encourages the professional and leadership development of women graduate students at Claremont Graduate University (CGU). WILA supports the development of women through Speaker Series events, the Annual WILA Conference, and other networking events with women leaders.

In spring of 2008 the club hosted its first annual WILA conference. It attracted ambitious, visionary women from our programs, the 5 Claremont Colleges, and sister associations at other regional universities. RenownedDruckerSchool professor Jean Lipman-Blumen, co-founding director of the Institute for Advanced Studies in Leadership and an expert on gender roles and toxic leadership, delivered the keynote address. There were also a series of panels offered throughout the day featuring local and regional leaders: * Women as Entrepreneurs * Corporate Social Responsibility * Healthy Living * Non-traditional Leadership.

– The DruckerSchool Student Association

The Drucker School Student Association (DSSA) was created for the purpose of representing the student body of the DruckerSchool. The DSSA strives to enhance all aspects of the DruckerSchool, both internally and externally, through respect, communication, and hard work. It endeavors to understand the needs of the student body, and works to meet those needs through planning and execution, as well as collaboration and coordination with administration, other boards, student clubs, alumni, and outside parties. The DSSA’s responsibility is to continuously improve the quality of the entire Drucker experience for each and every member of the Drucker community.

The DSSA is designed to be a sustaining body that is also enabled to choose the focus that will deliver the best experience to the students it serves. This year the focus grew in the areas of social entrepreneurship and corporate social responsibility.

Other student clubs that discuss the topics of ethics and corporate and social responsibility include:

1

– DruckerSchool Consulting Club

– Drucker Finance Club

– Drucker Student Book Club

– DSAB – The DSSA for EMP students

1

CAREER DEVELOPMENT PROGRAM

– Office of Career Management

There are four ways in which the Office of Career Management (OCM) incorporates social impact into its initiatives.

• One, a professional skills workshop is offered to students. As part of the curriculum, career related ethical issues are discussed where students are presented with a difficult situation and they must present how they would handle it in a responsible way.
• Two, several panel discussions are offered throughout the year. At least one of the topics per year focuses on sustainability and green careers.
• Three, OCM informs students about community events outside of CGU, so that they can participate in events such as ‘Hollywood goes green’ or various community building events.
• Finally, at career fairs, OCM is careful to include employers who pride themselves on sustainable social and environmental management. Companies that had come to the campus include Southern California Edison, Target, Green Suites, Patagonia, CH2M Hill, Analysis Group, Frontier Project Foundation, Green Energies Consulting, and others.

In the Fall of 2008 a new Student Mentorship Program was introduced by the DSSA. Volunteering second-year students were given a group of six to eight first-year students to mentor. The program was mainly designed to facilitate student involvement, promote student collaboration, and advise new incoming students.

INTERNATIONAL IMMERSIONS

– Global Strategy & Trade (MGT 401)

Oxford course, held at St. Peter’s College, OxfordUniversity, is a 12-day intensive program on the multi-dimensional aspects of global strategy and trade. The focus is on formulating and implementing global strategies in the context of evolving legal, political, and trade environments in the dramatically changing global marketplace. Current trade developments and strategic issues in the European Union are emphasized. The program includes guest lecturers, field trips to local firms, and a variety of cultural and social events.

This course is also a TNDY course, which means that it is transdisciplinary. The Transdisciplinary Studies Program at CGU offers courses in seminar and lecture/discussion format that combine scholarship and methodologies from a range of disciplines thereby creating an enriched pedagogical and research environment for students and faculty.[3]

– Strategic Risk Management (MGT 410)

With Mexico City as our venue, students are introduced to the challenges of managing the strategic risks of doing business in an emerging economy. Beginning with an introduction to the economy of Mexico, the course develops a framework for formulating strategies and managing the risks of international business initiatives anywhere in the world.

EXCHANGE PROGRAMS

In addition to classes offered by the DruckerSchool, students may participate in an exchange program with one of our partner schools - HitosubashiUniversity in Japan, St. Gallen University in Switzerland, InhaUniversity in South Korea, and Rotterdam School of Management Erasmus University in the Netherlands.

International experience – of different cultures, people, languages and attitudes – is perhaps the most sought-after attribute for managers today. This experience is so highly valued because it cannot be taught; it can only be lived.

With 100 nationalities represented by our student body, working in an international environment is exactly what RSM offers. Teams of students from diverse cultures, working together, create a microcosm of multinational business – a great way to develop skills in the subtle art of global communication and cooperation.

RSM also actively encourages the international exchange of students to and from our many excellent international partner schools. International study trips and internships abroad are a feature of most of our programs.

“The world is a book, and those who do not travel read only a page.” – St. Augustine[4]

Principle 2

Values: We will incorporate into our academic activities and curricula the values of global social responsibility as portrayed in international initiatives such as the United Nations Global Compact.

“BUSINESS AS UNUSUAL”: THE 2008 NET IMPACT STUDENT GUIDE TO GRADUATE BUSINESS PROGRAMS

In its annual publication, “Business as Unusual,” Net Impact ranks universities and colleges based on how students feel their programs address social and environmental issues. Now affiliated with U.S. News and World Report, it's estimated that the guide will be downloaded by some 5,000 to 7,000 current and prospective MBA students. In it, the Drucker School was ranked among the top 10 schools in the 2009 edition of the publication, above schools such as Cornell, Yale, Tuck, Haas, and Duke in how well we prepare our students for “ethical and socially responsible leadership.”

As explained on its Web site, Net Impact is an international nonprofit organization whose mission is to make a positive impact on society by growing and strengthening a community of leaders who use business to improve the world. It spans six continents, making it one of the most influential networks of MBAs, graduate students, and professionals in existence today.

CURRICULUM INNOVATIONS

This academic year, we added many new classes to the Drucker curriculum, including: Sustainable Business; Women in Leadership; Labor & Personnel Economics for Managers; CEO Forum; and Shared Leadership: Extreme Edition.

COURSES

The DruckerSchool uses a stakeholder approach, as opposed to the sole focus on the shareholder. In the traditional view, increasing value to the shareholders, or strict profit-maximization, is emphasized. Because we utilize the stakeholder approach, however, we realize our responsibility to a wider scope of stakeholders, including the environment and communities in which we operate. Therefore, and as noted by AACSB, the issues such as ethics and corporate social responsibility weave throughout every class we teach.

Examples of Business Ethics and Social Responsibility Courses at the DruckerSchool:

– Morality and Leadership (MGT 315)

This course explores the moral dimension of leadership. The central, recurring theme of the course is captured by a fundamental question: Faced with conflicting basic responsibilities, uncertainty, relentless competition, and a morally imperfect world, how can a leader create a high-performing organization and still live an honorable life with integrity?

– The Drucker Difference (MGT 325)

This one-of-a-kind course focuses on a values-driven, human-centered approach to management, and relates current Drucker faculty research to the teachings and philosophies of Peter F. Drucker. It sprang from a conversation amongst the Drucker faculty during one of their monthly meetings where they were talking about how to infuse more “Drucker” into the DruckerSchool. We realized we were not always articulating the tenets of Drucker and his beliefs in the idea that management is a human enterprise and a liberal art. So we decided that each of our core faculty would teach a class meeting on their expert area and infuse that discussion with how Drucker would also interpret that particular topic. It was an exciting time that Spring and Summer as we developed the course materials, full of new ideas and writing.

This is a required gateway course that all Drucker students are required to take.We produced a book based on the course which was released in October, 2009, which approaches management as a liberal art and an integrative process.

– Sustainable Business (MGT 330)

This course has been designed to provide students with a solid understanding of the importance and scope of the social and environmental impacts of business activity; of the principles and practices that comprise sustainable business; of the forces at work that influence the pace, scope, and direction of sustainability efforts within societies, polities, and businesses; and of the effects of the issue of sustainability on competition, business innovation, and the concept of business enterprise itself. In addition to this content-based agenda, many of the class sessions include modules on skill-building, introducing the students to analytical models and techniques that allow more thorough and in-depth analysis of the issues involved in sustainable business practice.

– Corporate Governance (MGT 336)

How can we explain the turmoil that confronts shareholder capitalism today? What happened to Enron, Global Crossing, Tyco, and numerous other corporations in the last few years? Are these “isolated” incidences or is there a broader pattern of ethical lapses we need to be concerned with? What are the underlying issues? To answer such questions, this 2-credit course looks at the fast changing field of corporate governance. It is designed to survey the system, the process, the participants, the legal/regulatory environment, and the most important developments in the field over the last few years.