Why every management curriculum needs sustainability metrics and ethics
By Katyayani Mishra
In today’s complex and volatile business landscape, acronyms like ROI, EBITDA, and CAGR have long dominated the language of boardrooms. But a new set of letters—ESG (Environmental, Social, and Governance)—is rapidly becoming just as critical. More than a trend, ESG represents a fundamental shift in how businesses are evaluated, regulated, and trusted. And yet, in Indian business schools, ESG education is still not where it needs to be.
The real question is: Are we preparing our future business leaders to lead responsibly in a world shaped by climate change, social inequalities, and governance crises?
At BSB Edge, we believe teaching ESG is no longer optional—it’s a strategic imperative. It’s not just about compliance or reputation management. It’s about embedding sustainability, ethics, and long-term thinking into the very DNA of leadership. And Indian B-Schools, with their rising global presence, must rise to meet this challenge.
Why ESG Matters—Now More Than Ever
ESG isn’t just a Western concept being imposed on Indian business. It’s a global language of accountability and risk management, and its relevance in the Indian context is growing every day.
India is simultaneously one of the fastest-growing economies and one of the most vulnerable to climate change. Our urban centers face critical air quality issues, water scarcity is escalating, and energy demand is surging. Social inequity remains a significant challenge, from access to education and healthcare to gender representation in leadership. Corporate governance is also under the microscope, especially after high-profile frauds and financial mismanagement in recent years.
Investors, regulators, consumers, and even employees are watching. ESG metrics are now influencing access to capital, hiring practices, supply chain decisions, and brand perception. Global funds are increasingly channeling investments toward businesses that demonstrate ESG readiness. For Indian companies to stay globally competitive, their leaders must speak ESG fluently—and that fluency begins in the classroom.
ESG and the Indian B-School Landscape
While many top business schools globally have embedded ESG into their core curriculum, the pace in India has been mixed. There’s growing awareness, yes—but it often shows up as elective courses, one-off seminars, or peripheral sustainability clubs. What’s missing is a systematic integration of ESG thinking into core management education.
The traditional MBA curriculum has long prioritized profitability, efficiency, and growth. But in the 21st century, these metrics alone are not enough. Future business leaders must also consider:
- The environmental cost of operations
- The social impact of product and labor decisions
- The ethical implications of data, AI, and global expansion
- The governance structures that enable (or hinder) accountability
It’s no longer just about asking, “What’s the business opportunity?” but also, “At what cost?”
Moving from Values to Value
Critics often reduce ESG to a moral or ideological stance. But data increasingly shows that ESG-focused companies outperform over time—both in financial resilience and stakeholder trust.
Companies with strong ESG ratings typically:
- Exhibit better risk management
- Attract and retain top talent
- Secure easier access to global capital
- Build more durable brand reputations
- Anticipate regulatory shifts more effectively
In other words, ESG is not just a set of values—it’s a source of strategic value.
That’s why we must stop treating ESG as an elective and start treating it as a core leadership competency. Indian B-Schools must reimagine the role of business education—from producing managers who maximize shareholder returns to cultivating leaders who create sustainable, inclusive value.
Integrating ESG: What Should Change in the Curriculum?
So, what does it look like to meaningfully teach ESG in a management program? It begins with intentional design. At BSB Edge, we advocate for a holistic, embedded approach, where ESG is not a siloed subject but an integrated theme across domains.
1. Core Courses in ESG Fundamentals
Offer structured courses on ESG reporting standards (like GRI, SASB, and the BRSR framework in India), sustainability metrics, stakeholder theory, and regulatory developments such as SEBI’s evolving disclosure norms.
2. Embedding ESG Across Subjects
Finance classes should examine green bonds, impact investing, and ESG risk assessments. Marketing courses should discuss ethical branding and consumer trust. Strategy modules must include climate resilience and social innovation. Even operations should explore supply chain sustainability and carbon audits.
3. Use of ESG-Driven Case Studies
Learning through context is crucial. Indian case studies—such as how Tata Group balances profitability with CSR, or how Infosys reports on carbon neutrality—can help students analyze both successes and trade-offs.
4. Simulations and Labs
Create experiential ESG labs where students simulate crisis scenarios—a corporate governance scandal, a greenwashing accusation, or a backlash over labor practices. Let them roleplay as executives, regulators, and stakeholders, making decisions in real time.
5. Interdisciplinary Integration
Invite collaboration with environmental scientists, development economists, and legal experts to foster a cross-functional understanding. ESG decisions don’t live in a business vacuum.
6. ESG Capstone Projects
Encourage students to develop sustainability strategies for real businesses, conduct ESG audits, or propose policy recommendations. This bridges theory with real-world impact.
The Role of Ethics: Beyond Compliance
Any serious ESG curriculum must be rooted in ethics—not just regulatory checklists or risk mitigation. Ethics, after all, provides the “why” behind ESG. Why should a business go beyond legal requirements? Why should a company take responsibility for its social footprint?
But ethics education must go beyond abstract philosophy. It should involve:
- Ethical decision-making frameworks
- Dilemmas from Indian corporate contexts
- Critical reflections on leadership integrity, bias, and systemic privilege
- Discussions on equity, justice, and intergenerational responsibility
In other words, ethics should be less about telling students what’s right and more about teaching them how to think critically about what’s right.
Global Relevance, Local Context
While ESG has universal pillars, its practice must reflect local realities. Indian B-Schools must ensure that ESG education resonates with our unique challenges—urban-rural divides, informal labor markets, caste and gender disparities, ecological fragility, and family-run business structures.
For instance:
- Social metrics in India must reflect not just diversity, but inclusion across caste, class, and gender.
- Governance education must account for promoter-led structures and succession complexities.
- Environmental lessons must deal with region-specific concerns like monsoon variability, pollution hotspots, and waste management infrastructure.
This localization ensures that Indian students don’t just mimic global best practices, but lead in shaping context-specific solutions.
The Leadership We Need
In the next decade, India will produce not just CEOs for Indian companies, but global leaders for multinational firms. Their leadership will influence everything from climate policy to labor practices across continents. That’s a tremendous responsibility.
As such, the future of Indian management education must reflect the kind of leadership we want to cultivate—leaders who are as comfortable reading a balance sheet as they are addressing a climate report. Leaders who don’t see ethics as a limitation, but as a foundation. Leaders who are agile in strategy, but anchored in values.
A Call to Action for Indian B-Schools
The ESG revolution is here—and it’s reshaping how the world defines success in business. Indian B-Schools stand at a pivotal moment. Will we continue to train leaders for a 20th-century model of capitalism? Or will we take bold steps to prepare them for a 21st-century world defined by complexity, risk, and purpose?
Teaching ESG is not a distraction from business fundamentals—it is the new business fundamental. If we want our graduates to be future-ready, they must not only know how to grow businesses, but how to do so responsibly, equitably, and sustainably.
At BSB Edge, we believe it’s time to stop treating ESG as a soft skill. It’s a strategic skill—and Indian management education must reflect that truth.
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