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Common Good and B-Schools W Business schools have a vital responsibility: They must teach their students—and the world—that capitalism and commerce are essential forces in changing lives for the better. by Louis E. Lataif the hen many people think "business," the word "benefactor" may be the last to come to their minds. Some may first think of Gordon Gekko, the unsavory character from the 1987 American film "Wall Street," whose proclamation "Greed is good!" perverted Adam Smith's "invis- ible hand" of the free market. Many may think of the historic collapses of Parmalat, Enron, and WorldCom; the stock market scandals; and what appear to be endless stories of corporate malfeasance. Their perceptions are reinforced by the media, which often portrays business more for its travails than its abundant successes; and by Hollywood, which often casts business as the villain, from the pharmaceutical industry in "The Constant Gardener" to the oil companies in "Syriana." Obviously, that's not what business administrators and educators think. Hundreds of thousands of us devote our professional lives to leading, working, and teaching at one of the world's many business schools. Even so, we must consider the percep- tion that young people in primary and secondary schools have of business. What do they really know about capitalism or the workings of a free market economy? And to what degree do business school students themselves understand how business truly functions in society? Given the messages it receives from popular culture, the world may underesti- mate the power business has to change society for the better. But despite the din of criticism, the fact remains that most of humankind's hopes for its future are made attainable by enterprise. Free market capitalism, in terms of its benefit to humankind, has outperformed every economic system ever created. U.N. Secretary General Kofi Annan has it right when he characterizes poor countries as being poor of business. Three trends in particular—outsourcing, technological advancement, and global- ization—promise to make an incredibly positive impact on the lives of those who live in underdeveloped economies. These trends, however, are often blamed for the world's problems, rather than viewed as solutions. I believe that business schools must help students understand the value of these trends and develop more positive perceptions of business. Business students must understand how the condition of the global population can be improved by an expansion of healthy, effective businesses throughout the world, and why com- mercial trends such as outsourcing, technology, and globalization have roles to play in developing a strong, interdependent global economy. Students need to know how they benefit, both professionally and personally, from the proliferation of free markets. As business educators, we must make them aware of the link between their business careers and the betterment of the human condition. Outsourcing as Opportunity Of all the trends to give business a bad name, "outsourcing" is the most notorious in many industrialized nations. Critics of outsourcing bemoan its localized, short-term effects on job growth; but in reality, the long-term effects promise to improve the prospects of all countries. Two dramatic examples of the positive effects of outsourcing by companies in the Western world are Hong Kong and Singapore. Today, both are thriving economies 36 BizEd MARCH/APRIL 2006