Business education for social issues

Professor Jang Dae-chul, first from left, engages in a group discussion with students during a class in the KAIST SE MBA program on June 19.
/ Korea Times photo by Yoon Sung-won

KAIST business school incubates promising social enterprises

Lee Byung-tae, dean of the KAIST
Business School. / Courtesy of KAIST College of Business

By Yoon Sung-won

Korean society has become concerned recently over the issue of social disparity and co-prosperity, especially in economic terms, under the government's ambitious drive for so-called "economic democratization." One business school here opened an MBA program that specializes in training entrepreneurs who are conscious about social issues.

KAIST College of Business, located in Hoegi-dong, northeastern Seoul, launched the "KAIST Social Entrepreneurship MBA" program or KAIST SE MBA. The course is designed to teach about seeking sustainable models for social enterprises and to nurture talented managers who are capable of leading such businesses to success.

"In cooperation with SK Group, we designed the SE MBA to teach students both the theory and practice behind social enterprises, as well as fundamental knowledge on business management," said Lee Byung-tae, dean of the college.

The business school was founded in 1996 as the first full-time MBA program in Korea. Since then, three individual business schools ― management, financing and accounting, and information and media management ― have been established. At the three schools, various full-time and part-time MBA programs including Techno MBA, IMBA, Finance MBA, and Executive MBA are taught.

Education at SE MBA program could be incubated thanks to the basis of profound research and teaching know-hows that have been accumulated by the three schools, according to the KAIST College of Business.

To match global standards of business education, the business school acquired double accreditations from the Association to Advance Collegiate Schools of Business (AACSB) of the U.S. and the European Quality Improvement System (EQUIS) in 2003 and 2010, respectively.

During a four-hour class titled "Creating Social Venture Ideas," presided over by the professor Jang Dae-chul on June 19, students grouped with classmates and an instructor from SK Planet, and engaged in a discussion about "how to discover customers' demands."

The front of the KAIST Business School building.
/ Courtesy of KAIST College of Business

"As a result of the business school's efforts on industry-academy cooperation, this class provides students with a heuristic education," the professor said. "Instructors who come from SK Planet's Human-Centered Innovation (HCI) team help students develop business items from a broader perspective."

"Learning how to balance between seeking profits and pursuing ideals as a social entrepreneur is one of the biggest benefits of the KAIST SE MBA," said Kim Sung-kyung, a student who runs his own social enterprise called "Jarakdang." He and his colleagues run flea markets in universities where college students share and trade used goods.

"I realized that I need more expertise about business administration while running a social enterprise. The fact that I am learning it here makes me enthusiastic about the program," Kim added.

The KAIST SE MBA is different from other MBA programs in its approach to the concept of business management as it emphasizes sustainability and co-prosperity regarding the environment and society, as opposed to existing business and economic education that puts more importance on growth and profitability, according to the business school.

"Such a unique program was possible thanks to the governmental regulations that allow KAIST to formulate more innovative programs," professor Jang explained. "Based on such an environment, the graduate school aims to foster business leaders who understand the diversified needs of society and industry."

Among the students are several CEOs who have run social enterprises before undertaking the course. These students look for theoretical knowledge that can fill in what was missing while running such companies, Jang said.

"Students on the KAIST SE MBA program are required to follow two tracks at the same time, business administration and social entrepreneurship," the professor said. "For that reason, students here show extra enthusiasm during the two-year program that continues without breaks or vacations in the summer and winter semesters."

The business administration track includes ordinary business subjects such as finance, accounting, managerial economics and marketing, while the social entrepreneurship track consists of classes that emphasize practical education. On the social entrepreneurship track, students learn how to establish a venture social enterprise and look into successful cases of such companies worldwide.

During the summer semester, a two-week field trip to an overseas social enterprise is offered. This year, students will visit Nicaragua, and directly engage in problem solving procedures between local social enterprises and the regional community.

To further enrich the program's empirical education, SK Center for Social Entrepreneurship has been established as an affiliated institution within the graduate school. The center supports students by developing curriculum, performing research on social enterprises, and helping alumni starting up such companies after graduation.

"Extra curricula activities include special lectures by domestic and overseas experts in social entrepreneurship and mentoring programs to help graduates design promising firms," Arthur Hong, a research associate at the center, said. "We provide actual help like business mentoring, venture incubating, and investment promotion for those who are opening start-up social enterprises."

The business school also provides financial support for future social entrepreneurs. Scholarships for the SE MBA program cover the tuition fee for the entire two years, as well as the cost for overseas field trips in the first year. A scholarship is offered for all students who are admitted to the program in the first semester and the remainder is given according to participation and academic achievement. Those who plan to run a social enterprise are also eligible for full tuition support as part of the scholarship program. Accordingly, the master's thesis will be the business plan for the start-up.

"Social enterprises these days are being highlighted as an alternative form of business that contributes to the public sector like non-governmental organizations," the dean said. "We will continue our effort in training leaders and directors of such firms, who practice social responsibility and contribution."