1. 1. What is the problem presented? ◦ To what extent did the business schools cause the 2008 financial crisis? 2. What are the objectives of the article? ◦ To determine the role of the business schools in the 2008 financial crisis. ◦ To offer solutions so that the 2008 financial crisis will not happen again.

2. 3. Areas of consideration ◦ MBA programs’ purpose  The original purpose was to train professional managers to run American institutions for the social good, not short-term profits.  New ideology is that managers should work only to maximize shareholder value. ◦ Ethics  Business schools impart morality to their students through ethics courses, however, in practice they are abandoned and marginalized. ◦ Corrupt system  The incentives of a corrupt system can overcome even the best training. MBA graduates join an ecosystem with its own regulation and incentives.

3. 4. What are the alternative courses of action (ACA)? ◦ Provide licensing exams to professionalize management ◦ Take a pledge under which future business titans promise to do no harm ◦ Add new courses on regulations and the lessons of the current crisis. ◦ Revise the curriculum ◦ Business schools must be punished for their failures.

4. 5. Analysis of the ACA as guided by the objectives of the case ◦ Facts:  MBA programs rely heavily on statistical (data and financial) models with the belief that humans can predict and therefore, control financial risks (thereby creating overconfident people).  MBA programs treat ethics an afterthought (lack of moral values). 6. Recommendation ◦ ETHICS