Monday, November 28, 2011


Consider this:

You walk into a college classroom where most of the faces are Indian and Chinese (or “South Asian” and “East Asian” for the more broad term – and in this context, it’s not really a question of citizenship i.e. Indian-American vs Indian but of race).

If you were a recruiter for Goldman Sachs, McKinsey, Apple or any global company, would you perceive this school to be MORE or LESS prestigious? If you were a recruiter where post-MBA jobs are managerial and become more relationship-based (not analytical/technical), and where the key contacts your company corresponds with (investors, Board members, clients, customers, government officials) are mostly white (American or European), or at least a sprinkling of various nationalities and cultures (but still mostly white), would you be more willing to hire students from this classroom, or would you be more inclined to recruit from a similar caliber of school where there were more white faces in the class?

Now, if you were an applicant and walked into this very same classroom, would you perceive this school to be more prestigious or have an “exclusive” brand compared to a class that is more diverse (or where at least half were white)? As an applicant, would your opinions be different depending on your own race or nationality (which gets into the ugly truth that even in non-white countries, the perception of prestige and exclusivity is still defined by whether white people will buy it). And if b-school classrooms looked more like MS-Engineering programs (where the overwhelming majority are Indian/Chinese), would that increase or decrease the likelihood of you applying to a highly selective business school? (Note that “highly selective” and “prestigious” can be related but are not synonymous.)

And herein lies the ugly truth of race, prestige and admissions.

For business schools, and especially those in the very top tier like Harvard, Stanford, Wharton, and so forth – a big part of ensuring that their MBA programs stay relevant is to maintain their perceived prestige (exclusivity), because as we all know – while having an MBA can be of value, it’s not necessary for success in business, as amply shown by countless examples of incredibly successful entrepreneurs and executives out there without any formal business education. The perception of exclusivity for b-schools is rooted in the assumption that blue chip white males/females are the people others (regardless of background) want to be associated with. And that feeds on itself – the more of these people who apply, the more it will attract others to apply (including Asians), which creates a “network” which b-schools will then trumpet as something invaluable to its students (who are then networking with each other).

That’s why b-school admissions is more like the selection process for a private club: a country club, the freemasons, a hot nightclub (bring in all the hot girls, groups of guys are left standing in line), motorcycle club, or any sort of private organization. They can admit and reject whomever they want, and constantly change the parameters for admission to suit their needs (which isn't to graduate the "best and brightest" but to maintain that perception of prestige). Business school admissions is NOT a meritocracy, and it never really was, since the admissions process by nature is subjective and a "black box" if there ever was one.

When it comes to race and admissions, it’s not about trying to marginalize white or Asian applicants in the name of diversity – that seems to be a common refrain from many detractors who feel that adcoms are on some socialist, pinko, leftist agenda to admit as many “blacks, Hispanics and lesbian paraplegics” (of course, all mentioned in a derogatory tone by these very detractors) into b-school over more qualified white and Asian candidates –which is simply not the case because that is not what recruiters want, and it’s not what will ensure that applicants see these b-schools as “prestigious” (which will ensure that these schools continue to receive a crapload of applications each year).

In short, top MBA programs want their schools to be *diverse* (read: mostly or at least half white) rather than *ethnic* (read: mostly non-white) – that helps to ensure perceived prestige and exclusivity in our current culture of how we view the relationship between race and status symbols, which then helps to attract the maximum number of applicants as well as the most “exclusive” (read: highest paying) corporate recruiters. That is partly why they also are looking at younger candidates: it’s a way of reaching into the blue chip American pool (white kids with Ivy/equivalent backgrounds) to ensure that their numbers don't drop off to the point where b-school has to start looking like an MS-Engineering program – the less white people in the applicant pool, the more “ethnic” they have to go. This is ugly to say, but it's what is bubbling underneath all of this.

The one big silver lining to all this is that how we perceive race changes over time – it’s not static, but fluid. Even now, for many b-schools, the incoming classes are no longer overwhelmingly white, but again, the schools are “diverse” and not “ethnic”.

One example of how perceptions changed is that of the Jewish community – from “ethnic” to “mainstream.” Ivy League schools in the post-WWII era had a reputation for an unspoken two tiered admissions standard as a way to stem the influx of Jewish students for the very same reason: the perception of prestige. Many of these Jewish kids had as strong if not stronger credentials than their white counterparts to the Ivy League’s law and medical schools (b-schools back then were a bit of a backwater), but would still be underrepresented in these classrooms relative to the applicant pool. And yet, within a generation, that bias (at least when it comes to university admissions) has all but disappeared by the early 1980s.

With race and prestige today, I am confident it will change as the economic and cultural input of non-Western communities is considered mainstream, but this is where we’re at right now. So who knows, maybe in 10-15 years time, these biases may disappear altogether at least in this context of university admissions.

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