The development, strengthening and multiplication of socially minded businessmen is the central problem of business. Moreover, it is one of the great… - Rakesh Khurana

[There will be] a time when societies around the world are crying out for more and better leadership, when our current leaders (especially in business, but also in government and other spheres of public life) have lost legitimacy, questions are being asked, sometimes angrily, of the institutions that school these leaders: What kinds of leaders are these institutions developing that have caused so much hardship for so many?... What is the vision or model of leadership that animates the curriculum and developmental models [of current leadership approaches taught in institutions]? If there is such a model, does it need to be revisited, reexamined, and revised in light of the widespread failures of leadership? Do we really understand what it takes to develop better leaders?

In the face of the recent institutional breakdown of trust in business, managers are losing legitimacy. To regain public trust, management needs to become a true profession in much the way medicine and law have...

Neoclassical economic theory forms the central discourse and behavioral model of contemporary management education. Drawing on research and insights from game theory and behavioral economics we have argued that many of the core assumptions underlying this model are flawed. While we cannot say that the widespread reliance on the Homo economicus model has caused the highly level of observed managerial malfeasance, it may well have, and it surely does not act as a healthy influence on managerial morality. Students have learned this flawed model and in their capacity as corporate managers, doubtless act daily in conformance with it. This, in turn, may have contributed to the weakening of socially functional values and norms like honesty, integrity, self-restraint, reciprocity and fairness, to the detriment of the health of the enterprise. Simultaneously, this perspective has legitimized, or at least not delegitimized, such behaviors as material greed and optimizing with guile. We noted that this model has become highly institutionalized in business education. Fortunately, we believe that the potential for moving away from this flawed model is significant and thus can end this chapter on a more optimistic note for the future of business education.