A University Is Not A Corporation

The Indian Express     3rd April 2021     Save    
QEP Pocket Notes

Context:  Universities should be governed in a unique way rather than like corporations due to their unique role and impact on society.

Governance challenges faced by the Universities:

  • Complex governance: due to the multifaceted nature of the organization.
    • There are social expectations from different stakeholders — faculty, staff, students, parents, accrediting bodies, government departments, regulatory agencies, international partners/donors.

Challenges of treating universities as corporations:

  • Focused on economics rather than social development:
    • Corporations are founded on the principles of profitability and return on investment. Thus, their focus will be on things like generating maximum possible revenues with a productive workforce.
    • Universities, on the other hand, are founded on the twin principle of the creation of knowledge through research and its dissemination by teaching. (focus on improving teacher-pupil ratio)
  • Different parameters for measuring their success:
    • Success of corporations is measured on financial parameters such as turnover, EBITDA (earnings before interest, taxes, depreciation, and amortization), margin, sales, market share etc.
    • Success of universities is measured based on intangible outcomes of intellectual growth and holistic development, inspiring young people to become transformative leaders etc.

Way forward: Universities are not comparable to corporations. As William Bruce Cameron observed, “Not everything that can be counted counts, and not everything that counts can be counted.”

  • Promoting excellence in teaching and research: by improving faculty-student ratio, establishing more research centres, generating socially relevant knowledge, and providing interdisciplinary learning.
  • Creating favourable regulatory structures: by relieving them binding organizational structures that breach the very academic freedom and autonomy.
  • Financially empowering universities: The dependence on financial resources should not weaken the autonomy of the university- National Education Policy is the right policy in this direction.
    • Corporations should provide resources through Corporate Social Responsibility (CSR) initiatives.
    • The Global Compact and the UN’s vision for implementing the Sustainable Development Goals (SDGs) encourage businesses to examine their larger role in society.
  • Achieving accountability:  on the basis of a university’s own commitment and capacities to fulfil its stated mission, which in turn must be benchmarked against global standards of quality. 
  • Promoting student-centric governance:  with a view to fulfilling students’ goals and aspirations.
QEP Pocket Notes