I was recently scanning news articles about business education and examined a recent Fast Company magazine article titled “Why Business Schools Are Failing Society.” The article paints a dramatic picture of higher education as outdated and complicit in societal dysfunction.

While the author, a respected academic, raises valid concerns about capitalism and sustainability, the article overstates the influence of business schools and unfairly blames them for systemic problems that span government, policy, and culture. At the National Business Education Association (NBEA), we believe it’s important to offer a more grounded and accurate view—one that reflects the tremendous strides educators are making across the country.

Here are five key ways business education is advancing society—not failing it.

1. Shareholder capitalism isn’t broken—it’s evolving.
The article argues that shareholder capitalism is “broken,” but that claim oversimplifies a complex and historically successful economic framework. While no system is without flaws, market-based capitalism—particularly in its shareholder form—has lifted more people out of poverty, increased life expectancy, and driven innovation on a global scale. The flexibility of capitalism lies in its ability to adapt to new realities and incorporate values beyond profit, such as sustainability and long-term value creation. Rather than being broken, shareholder capitalism is being refined—and business schools are central to guiding that evolution. Educators are helping future leaders understand how to balance profit with purpose and make decisions that benefit shareholders and society.

2. Business schools are catalysts for innovation and ethics—not defenders of the status quo.
Modern business curricula have undergone significant transformation. Subjects such as corporate social responsibility, sustainable business models, and ethical leadership are now core components—not just fringe electives. Educators are encouraging students to wrestle with real-world challenges like environmental stewardship, long-term strategy, and the ethical use of technology. These are not institutions clinging to outdated models; they are actively shaping the next generation of leaders to think critically and responsibly.

3. Business education emphasizes stewardship, not selfishness.
The claim that business schools teach students to pursue only profit is a mischaracterization. Today’s programs help students understand the broader purpose of business: to create value, serve customers, and contribute to healthy economies. Many schools now teach stakeholder theory alongside traditional shareholder models, prompting students to think holistically about the impact of their decisions. Educators regularly challenge students to consider the “why” behind business—not just the “how.”

4. Systemic issues like climate change and inequality require cross-sector solutions.
While business has an essential role in addressing climate risk and economic disparity, these are society-wide challenges that involve government policy, global trade dynamics, and cultural change. Blaming business education for systemic breakdowns ignores the progress being made within institutions—and the role of other sectors in enabling or constraining reform. Business schools are often incubators for solutions, not barriers to them.

5. Today’s students want more than high salaries—they want meaningful careers.
Students entering business education today are not driven solely by financial ambition. Many are passionate about entrepreneurship, sustainability, and creating positive change through commerce. Schools are responding with programs in social entrepreneurship, impact investing, and innovation ecosystems. Students are not passive recipients of outdated models; they are active voices pushing institutions to be more responsive, human-centered, and future-focused.

Conclusion
Rather than condemning business schools, we should recognize them as key players in the evolution of modern society. Far from failing, business educators at all levels—from high school to graduate school—are helping students think critically, act ethically, and lead with purpose. The very capitalistic system the author criticizes is the very system making business education better. The real opportunity is not to tear down business education, but to invest in it, support its continued adaptation, and acknowledge the progress it is making every day.

Joe McClary, is the Executive Director of the National Business Education Association

The views expressed herein do not represent an official position of the NBEA Board of Directors and all commentary are the author's and authors alone.