IMMIGRATION

A Closer Look at Business Education March 2007 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ : IMMIGRATION INTRODUCTION: Regularly sensationalized in the media and politicized in public debate, the topic of immigration often eludes judicious contemplation and rarely evokes the sheer empathy that is essential for fully reflecting upon implications of this human drama. Within the past few months, at least two controversial news stories have highlighted vastly different issues linking business decision-making and immigration. First, a recent step-up in government raids has occurred in businesses employing undocumented immigrants in the United States. 1 These illegal immigrants are generally unskilled and work for low wages in the agriculture, food-processing, household services, and construction industries. In one meatpacking plant, for instance, over three hundred employees were arrested in a single raid, in essence shutting down operations. 2 Second, the Bank of America encountered harsh criticism from anti-immigration activists when the company revealed its intention to offer credit cards to individuals without Social Security numbers. 3 The number of management issues illustrated or alluded to in just these two cases suggests the relevance of exposure to immigration issues during a business school education. In her course titled “International Political Risk Management” at Cornell, Dr. Elena Iankova makes the case that “immigration can lead to destabilization of the general business environment, so companies should consider it as a risk variable before investing in a particular country.”4 At ESADE Business School in Barcelona, Dr. Daniel Arenas teaches a core course that focuses on ways corporations can work with the public sector “to guarantee social services” to workers, a topic especially relevant to international businesses that open operations in immigrant-heavy regions.5 Despite these examples, though, immigration remains a topic largely outside the mainstream in MBA programs today. 6 From a different perspective, immigration affects the very essence of business school education. In 2004, for example, “almost 45% percent of the students enrolled in the Financial Times’ top 50 business schools” are foreigners in the country where their schools are located.7 The immigration policy of national governments and the acceptance guidelines for international students at individual schools directly influences not just diversity on campus, but the quality of managers working around the world. This Closer Look shares courses and classroom resources that address immigration and immigration-related matters. For example, see “Nervous Employers Re-Examine Practices in Wake of Immigration Raids,” Sept. 15, 2006, Daily Business Review, available here: . 2 See “Immigration Raid Leaves Texas Town a Skeleton,” Feb. 9, 2007, in the Washington Post, . 3 See “Bank Defends Credit Cards for Illegal Immigrants,” Feb. 13, 2007, from All Things Considered on National Public Radio, . 4 Dr. Elena Iankova is a Lecturer of International Business at Cornell University’s Johnson Graduate School of Management. See below for Dr. Iankova’s 2005 course, titled: Business and European Enlargement. 5 See the course description for Geopolitics, Society and Culture in the Notable Coursework section below. 6 According to our 2005 data collection effort, Beyond Grey Pinstripes, in which 90 schools worldwide participated. 7 John Seybolt’s “Managing in Tumultuous Times,” BizEd, March/April 2004, . 1 A Closer Look NOTABLE COURSEWORK: at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The following course descriptions are drawn exclusively from Beyond Grey Pinstripes, a research survey conducted biennially by the Aspen Institute. ■ The University of North Carolina at Chapel Hill, Kenan-Flagler Business School Business Demographics (Elective Course) Instructor: John Kasarda “This course examines macro forces shaping business development in the U.S. and abroad, including technological change, transforming national and global economies, labor force trends, demographic groups, immigration rates, new consumer market growth (including ‘base of the pyramid’ markets), corporate relocation trends and job growth center and demographic futures (to predict future labor force skill needs). Domestic population changes are assessed as they relate to urban and suburban growth patterns, emerging areas of employment opportunity, marketing strategies for various demographic and lifestyle groups (e.g., Hispanics, Asians, gays, women) and real estate investment. International business strategies are considered in light of changing world demographics and their implications for human resource management, international business location decisions and global competitiveness. Public and business policy issues are discussed as they relate to the social issues and environmental topics established in the syllabus. These topics are all key issues for managers’ consideration in developing sustainable business strategies.” Loyola Marymount University, College of Business Administration (2003 data) Managing the Multicultural Workplace (Elective Course) Instructor: Jeff Thies “The course examines the multi-ethnic business environment of LA, developing a model that allows examination of comparable economies and settings throughout the world. It includes analysis of immigration/settlement patterns, workforce/market participation, assimilation, and a special focus on the Mexican community in LA. Company issues, such as intercultural communication, prejudice as a managerial concern, operational challenges due to diverse work force, strategy related to changing demographics are covered in detail.” ESADE Business School (Barcelona, Spain) Geopolitics, Society and Culture (Core Course) Instructor: Daniel Arenas “This course analyzes the social problems generated or accentuated by the impact of the new technologies and economic globalization, and it places considerable emphasis on the key role played by the economic system and by companies; in this way, the ground is prepared for the analysis of the new dimensions of corporate social responsibility made on the ‘Corporate Citizenship’ course. ‘Geopolitics, Society and Culture’ calls attention to the phenomenon of rapprochement and intercultural understanding based on increased contact and economic collaboration, and it studies the transition of nation states to a cosmopolitan democracy. The course deals with the growing flexibility, mobility and inequality in economic and employment spheres, and it analyzes the crisis of the Welfare State, which obliges the private sector to consider ways in which it can collaborate with the public sector in order to guarantee social services. At the same time, the course offers an overview of the new social ideals that are emerging in response to the phenomenon of globalization.” ■ ■ -2- A Closer Look ■ at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Case Western Reserve University, Weatherhead School of Management Managing in a Global Economy (Elective Course) Instructor: Leonard Lynn “The course addresses a number of social issues, including the social and environmental impact of globalization, clashes of different civilizations and cultures in international business, national economic security, and environmental protection. Retaliation against unfair labor practices, and others. Each week the class review articles from the Economist of relevant concern -- the growing demand for oil and other commodities, and how sustainable this is; the impacts of multinationals on working conditions in emerging economies, etc.” Cornell University, Samuel Curtis Johnson Graduate School of Management Business and European Enlargement (Elective Course) Instructor: Elena Iankova “How the process of European integration and enlargement is shaping business at the European level; strategies of multinational corporations with operations in Europe; strategies of individual companies in acceding countries; special emphasis on issues of environmental protection, agriculture, work conditions and free movement of labor in enlarged Europe.” For additional courses on related subjects, search 1,672 descriptions at Beyond Grey Pinstripes. ■ NOTABLE TEACHING MATERIALS: Materials referenced reflect the diversity of related teaching resources available at Caseplace.org. Most are available as free downloads to registered faculty members. ■ Case Study: Inequality and the "American Model" Source: Harvard Business School Publishing, 2002 Official data that suggest economic inequality has been mounting in the United States on various dimensions since 1979. Many causes of such inequality have been postulated: technological change, globalization, demographic factors, and changes in public policy (notably changes in taxation during the Reagan presidency). Whether rising inequality is even a cause for concern is an open question. Some dimensions of inequality may be of concern, whereas other dimensions may be viewed as less problematic. To the extent that rising inequality is seen as a social problem that needs to be addressed, various policy proposals have been advocated. Chances”] Source: Harvard Business School Publishing, 1997 In the early 1990s, Donna Klein, Director of Work/Life programs for Marriott International, surveyed hotel and resort managers and found they increasingly were relied upon to help employees cope with the stresses of their personal lives. Immigration, child custody, spousal abuse--numerous personal issues were requiring up to 50% of managers' time and fueling extremely high turnover among the company's over 100,000 lower-wage workers. While Marriott offered a traditional dependent care resource and referral service, Klein realized that this service was not particularly useful or appropriate for hourly workers. She understood that hourly employees needed help finding cost-effective ways to solve their personal problems and more one-on-one consultation to help them tap into their local resources. Shocked by the survey results, senior management asked Klein and her associates to devise a solution to address the problem. ■ Case Study: Donna Klein and Marriott International (A,B) [Income Distribution and “Life -3- A Closer Look ■ at Business Education _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Case Study: Building Products International - A Crisis Management Strategy (A, B, C) Source: Richard Ivey School of Business, 2000 The decision-maker responsible for evacuating company managers and their families from a crisis situation now faces a political hot-potato due to second-guessing from superiors, peers and subordinates as a result of decisions he made during the evacuation. The employees who were scheduled for evacuation had dispersed and had unilaterally planned their exit itineraries, resulting in the company incurring a $75,000 bill to facilitate the evacuation of a group of employees from another company. Despite the organizational and logistical challenges, all expatriates and their families were safely evacuated. The teaching objectives of this supplement to the A (9A99C001) and B (9A99C002) cases are to expose students to the politics during the post-crisis review of decisions made during those stressful and ambiguous times. ONGOING QUESTIONS: ■ Our 2005 Beyond Grey Pinstripes database indicates that many MBA courses emphasize diversity and cross-cultural management. Is there room for immigration in these discussions? Where else might immigration be integrated into the curriculum? As trade and finance become increasingly global, what are the implications to business of the restrictions of the free movement of people? Has academic research adequately addressed this incongruity? On May 1st, 2006, over a million immigrants took off from work and school and took to the streets of cities around the United States to participate in a day-long boycott to show immigrants’ importance to the national economy.8 One related question may be: as MBA programs prepare graduates to manage business risks, where do risks related to immigration fit in? ■ ■ RESOURCES: BeyondGreyPinstripes.org – World’s biggest MBA database, including detailed records on 1,672 courses, 1,730 extracurriculars, and 216 research articles at 128 schools on six continents. CasePlace.org – A free and practical on-line resource for up-to-date case studies, syllabi, and innovative teaching materials on business and sustainability. Created for the educators who will shape our next generation of business leaders! _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ A Closer Look is a monthly series of briefing papers on topical issues in MBA education, based on the research and programs of the Aspen Institute. The Aspen Institute Business and Society Program works with senior corporate executives and MBA educators to prepare business leaders who will effectively manage the financial, social, and environmental impacts of the private sector. Contact Justin.Goldbach@aspeninstitute.org to order reprints or to offer feedback. See “Immigrants Demonstrate Power through Strike, Boycott, Protests,” May 2, 2006, in The New Standard, . 8 -4-