National Press Club speech includes personal commitment to help bring about change.

WASHINGTON, D.C. -- Business schools have an obligation to apply their expertise and resources in research, course development, and teaching to address and seek solutions to the underlying causes of recent corporate scandals, said Harvard Business School Dean Kim B. Clark in a speech today at the National Press Club titled Corporate Scandals: Is It A Problem Of Bad Apples, Or Is It The Barrel? (online transcript, pdf file)

Explanations that blame either "a few bad apples" (dishonest corporate leaders) or "the barrel" (the practices of companies and the web of laws and regulations in which they operate) fall short, said Clark. The role of business schools, he emphasized, is to deepen the public conversation around corporate malfeasance and seek "solutions that are driven by a broader conception of what went wrong and what needs to be done."

Noting that the mission of Harvard Business School is to "educate leaders who make a difference in the world," Clark stated: "I believe we have a responsibility to shape and influence the next generations of leaders joining the economic system, and help them understand what creates outstanding organizations, what makes markets work, and the importance of trust and integrity. We also need to understand the system better: how to design markets more effectively, reduce conflicts of interest, and build stronger institutions of governance."

Early last fall, Clark said, the School embarked on the Corporate Governance, Leadership, and Values Project (CGLV), an intense, nine-month initiative to shed light on the root causes of the scandals with the aim of informing the broad range of decision makers who will bring about reform. A key part of the project has been for faculty to join with selected leaders in industry, government, academia, and the media in a series of workshops, culminating in a major plenary session in the spring where participants will integrate the findings of the workshops and identify specific courses of action. Interim results and related work are posted on the project's website (www.cglv.hbs.edu).

Clark also pointed out that, for the last fifteen years, the School has required MBA students to take Leadership, Values, and Decision-Making during their first weeks on campus. In this course, students develop an ethical framework to use as a guide for decision making, examine the reasoning processes needed for sound judgment, and learn methods used by responsible managers who are guided by a sense of purpose and ideals.

"Last December, after almost two years of work, the faculty voted to build on that experience and add a new course to the required curriculum [that further examines] ethics, accounting, finance, law, leadership, and governance," said Clark. That course will become part of the Harvard Business School curriculum next year.

Because the business world needs both "healthier, robust apples" and "a stronger, better barrel," the task before business schools is clear, Clark said. "Our responsibility is to dive deep into these issues, to create knowledge with power in practice, and to educate generations of students who see and understand - and feel - the importance of these issues."

He concluded on a personal note.

"I believe that I have a responsibility to do everything I can to make HBS a living model of the highest standards of excellence, integrity, accountability, and respect for others, so that we can deliver on that mission. I am committed to do everything I can, to use every bit of whatever creativity and skill that I have to make HBS a vibrant, innovative, principled place, a place that our alumni will be proud of, and a place that will earn the trust and respect of the society we serve. That is my commitment."

Founded in 1908 as part of Harvard University, Harvard Business School (www.hbs.edu) is located in Boston and offers full-time programs leading to the MBA and doctoral degrees. Because of its commitment to ongoing education for business leaders, HBS also offers more than 40 Executive Education programs to about 7,000 participants annually. Several of these programs, such as "Audit Committees in a New Era of Governance," "Making Corporate Boards More Effective," and "Governing for Nonprofit Excellence: Critical Issues for Board Leadership," address the critical, complex issues facing corporate leaders today.

With a faculty of over 200 scholars, HBS is dedicated to educating leaders who make a difference in the world. Its core focus is to shape the practice of business, build enduring knowledge, and effectively communicate important ideas to meet the challenges and opportunities of the 21st century.