More than morals: a simulation that supports sustainable management education

Abstract

PurposeWe explore how sustainable management education (SME) can help prepare future leaders to manage crises effectively. Precisely, the intricacies of articulating moral and economic imperatives for businesses in a manner that engages students in sustainable behavior are a serious challenge for SME. We study how to integrate reminders of moral and economic imperatives in a socially responsible investment (SRI) stock-picking simulation created for SME.Design/methodology/approachAdopting an experimental design, we analyzed how the reminders affected the average environment social governance (ESG) integration in the portfolios of 127 graduate students in finance over a twelve-week period.FindingsOur results show how essential it is to balance the two imperatives. The highest level of sustainable investment is attained when utilizing both reminders.Practical implicationsOur findings have practical implications for implementing and organizing SME in business schools to educate responsible leaders who are able to effectively manage crises. Learning responsible management is most effective when students are exposed to the inherent tension between moral and economic imperatives. Hence, our findings corroborate the win-win conception of SME.Originality/valueNo management decision study has experimentally measured the effects of SME practices on students' actual behavior. Our research fills this gap by complementing previous studies on the effectiveness of teaching practices, first by drawing on behavioral sciences and measuring changes in students' actual sustainability behavior and second by introducing moral and economic imperatives into an innovative teaching resource (TR) dedicated to SME.