Investigating risk-return profile of graduates: a corporate accountability and social responsibility perspective.

• Author: Palliam, Ralph

1. INTRODUCTION

   From a corporate accountability and socially responsible perspective Flew (2000), Carlos (2009), Osterwalder (2009) and the United Nations Educational, Scientific and Cultural Organzition (2008) identify education, inter alia, as a pivotal role in the pursuit of creating an awareness, expanding eco-friendly and sustainable opportunities, promoting social justice and shaping production and consumption related decisions people make. According to Elkington (1997) the triple-bottom-line of the simultaneous pursuit of economic prosperity, environmental quality and social equity has gained acceptance in various different public and private sectors as the theoretical framework for sustainable decision-making and conduct. Accordingly, the United Nations Educational, Scientific and Cultural Organization (2003) presents robust evidence that human capital is a primary determinant of economic growth and the findings indicate that human capital is also associated with a wide range of non-economic benefits such as better health and well-being. These findings are consistent with Becker's (1993) assertion that an investment in human capital, measured in terms of education, has moved to centre stage in strategies to promote economic prosperity, fuller employment and social cohesion. As a result, the United Nations' Educational, Scientific and Cultural Organization (2002) argues that education is increasingly considered an investment in the collective future of societies and nations, rather than simply in the future success of individuals.

   There are as many definitions of education as there are textbooks and articles that bear the title. From an experiential viewpoint, Curtis and Boultwood (1966) see education as a social act or experience that has a formative effect on the mind, character, or physical ability of an individual or groups of individuals. It is through education both formal and informal, that society broadcasts its accumulated knowledge, values, and skills from one generation to another. Macerinskiene and Vaiksnoraite (2006) contend that during the last decade the question of educational expansion attracted much attention and debates around the evaluation of its socio-economic benefits and costs continue to be paramount issues. The study: Socioeconomic Benefits of fourteen Community College Districts in Oklahoma was undertaken by Robison and Christophersen (2003) who identify public and private benefits that accrue to the state. The United Nations' Commission on Sustainable Development, (2008) suggest that as countries become economically competitive and financially affluent, the consequences of placing monetary value above all else and applauding unbridled greed and rapacious consumerism at enormous social costs have not been addressed adequately. In this regard the United Nations' Commission on Sustainable Development (2008) lays the groundwork for a policy setting debate and considers that developing countries as a whole had for decades been facing the challenge posed by economic inequalities and market inequities. Furthermore, the Commission considered whether these inequities have been concealed by the developed world and international financial institutions so that the industrialized countries could avoid their responsibility to change their rapacious consumption habits. Undoubtedly, investing one's energies in values that undermine more important national and societal goals, renders one to conduct one's way that undermines educational goals (Paul and Elder 2002:145).

   Should educational authorities, civil society and corporations expect students to uphold the existing social and economic order, the question that arises is: what is the vision of this order in society? As stated in the Declaration of the World Conference on Higher Education in 1998, the United Nations Educational, Scientific and Cultural Organization (1998) contends that the relevance of higher education should be assessed in terms of the fit between societal expectations of higher education institutions and what higher educational institutions actually do. Frere (1972) makes it abundantly clear that educational institutions need to become more responsive and proactive in addressing societal needs and solving problems in society. This indeed ought to be prerogatives of higher educational institutions. The areas central to sustainable economic development relate to human, social and cultural capital development, technological advancement and innovation. De Silva (1997) concludes that a lack of educated individuals endowed with the knowledge of societal responsibilities could represent a huge cost to an economy. The demand for relevant and more meaningful higher education therefore becomes paramount. These views were also adopted as a priority for employers of the twenty first century by the International labor Organization in 1997 (De Silva 1997).

   According to Ogris and Westphal (2005), investing in human resources is indeed essential to increase employability, economic prosperity and social welfare. A positive or negative change in behavior in an individual and groups of individuals who make up a society is the real return on an investment in education. The nominal return will always be measured in economic terms (Psacharopoulos 1994). As always a return on investment can be positive or negative depending upon what value has been added. When returns are negative, risks are prevalent. Upon examining websites of universities around the world, the following key terms were prevalent in their mission: life-long learning; critical thinking and empowerment. "Learn, think and become" is a slogan that eloquently captures the vital role of a university. However, what to learn, what to think and what to become are issues that higher educational institutions are considering in their scholarly pursuits. Whilst this is important, one needs to determine: who determines what to learn, what to think and what to become? Undoubtedly, society plays an important role in this regard. Governments of the day are mandated to provide quality education for willing learners and unwilling learners so that they will be able to reach their full potential and will be able to meaningfully contribute and participate in the growth and development of the country. Zulu (2000) maintains that countries having a satisfactory record of good and clean governance (democracy) play a more vital role in ensuring that citizens are provided with a meaningful and relevant education. These countries would immediately instill in their universities minimum standards of good and clean governance and values associated with the pursuit of truth. Within this, universities would have to determine what is relevant in terms of epistemology (knowledge) and axiology (values). Moreover, Deer (2001) maintains that universities also play a vital role in ensuring that minimum standards of civil conduct exist.

   Emerson's note that "life is short, but there is always time for courtesy" comes to mind when one examines the role of graduates in society. According to Lucas and Rolden-Scheib (2006) many articles and books have been written regarding student incivility and the appropriate methods to address inappropriate behavior by students. In this regard Lucas and Rolden-Scheib (2006:35) cites the American Council on Education and the Carnegie Foundation for the Advancement of Teaching reports that suggest that the quality of campus life across the nation had deteriorated in recent years and also that the result was an "alarming lack of civility and consideration" toward other students as well as faculty members. Universities usually outline an array of principles, values, and expectations that foster democracy and a society where there is mutual respect and tolerance for other creed, color and race. Within this context one needs to consider whether the "alarming lack of civility and consideration" is indeed a manifestation of society.

   Moreover, students registering at a university come to understand that they are entering an institution that requires certain minimum academic standards that are approved by accreditation authorities and quality assurance programs. Together with the academic pursuits, ethical, moral and civic codes of conduct are also standards that are required to ensure that students will make a success of their career and be agents of change in their broad communities. At times teaching these codes of conduct are usually done through what one calls a hidden curriculum where students are picking-up an approach to living and an attitude to learning (Kentli, 2009). Due to the mobility of education and mobility of learners, students are accommodated in different learning environments in different countries and institutions that are governed differently with different social values. The benefits of education need to be considered within this context. According to Wang (2003) this presents risks for graduates who wish to pursue their professional career in societies or communities where their educational benefits or attainments may well not be accommodated.

1. BEYOND ECONOMICS--INVESTMENT RETURNS IN DEMOCRACY AND EMPOWERMENT

   Dewey's (1916) seminal work on democracy and education suggests that there is a clear link between democracy and the provision of education and that there are significant shifts in the creation of democratic attitudes as a result of improved education. Moreover, Zulu (2000) suggests an axiomatic relationship between education and democracy. However, he outlines mediating factors which determine the type of education and the nature of democracy in existence. According to Flew (2000), when an investment in education is made by a country, democracy is strengthened, social integration takes place, prestige of the forces of law and order are maintained, and acceptable civic and moral standards of human conduct in a given society are observed. The...