History of the Haas School of Business by Sandra Epstein

History of the Haas School of Business by Sandra Epstein

August 14, 2019 0 By Stanley Isaacs


(eerie music) – Hi, I’m John Douglass from the Center for Studies
in Higher Education, here to moderate, introduce
our guest speaker. Very happy to have Sandra Epstein give, I think it’s our
last talk of the semester for the Center for Studies
in Higher Education, and I think it’s also extremely opportune that this book has come out, and Sandra has done such an excellent job. I want you to note the
length of this book. It’s not a small piece. And often, as I was telling Sandra, often histories of departments or schools sometimes are very PR-oriented. It can be very light in a way, but this is not the case
in Sandra’s effort here. A good, scholarly, and interesting work that we’ll hear more about. I also want to say that
this leads us to some degree towards the 150th anniversary of the University of California. There are efforts to think about how to do a celebratory series of events and scholarly activities
on the campus here and throughout the UC system. So I think this fits very well with that. I also think it’s interesting
to hear Sandra talk because we’re at a time
of significant change not just in our national politics but in the shakeout in the MBA programs. You’re probably aware
there’s a lot of changes in the market, and the MBA
isn’t as quite as valued, and the cost of structures
of many MBA programs are being questioned. Not so, really though, I
think, in Haas’ viewpoint. I know that Richard Lyons, I saw some quotes put
in the Economist by him about that shakeout in the market, and you can see that a place like Haas, which is such a significant player and has such high quality will do just fine as the
market shifts in that regard. You know, the other
thing just to finally say is that I think also in Sandra’s History, which is so interesting, is
how the College of Commerce and then later the Business School and then Haas Business School evolves links so much with the
land grant tradition of the university, that there are perhaps differences, and Sandra can comment on
this better than anyone, between, say, some of the elite privates and their MBA programs
and how they’ve evolved and what they’ve seen as their mission versus what you see in
a land grant university and in particular Berkeley. And that is the story of Berkeley and so many of its professional schools, how important they have been for the overall economic development and socioeconomic and
ability of the state itself. So with that, I just want to
say a few things about Sandra besides this important contribution (marching band music) on the Haas Business School
(Sandra gasps and laughs) Oh, there’s the band that’s
(audience laughs) getting ready for, we
hope, is a victory (laughs) in the coming weekend. But besides this important book, she also did a history of the Law School, and she has a varied and interesting professional background. She has a PhD here, from Berkeley, which was in higher education. So that.
– Right. – Nothing that, and she was also, has worked in both profit
and nonprofit centers serving, for example, as
the public affairs officer for the Bank of America and then also working in the
UC Office of the President. So a varied and very interesting career. So with that, Sandra, thanks
so much for being here, and again, make sure you look
at the camera occasionally. (Sandra laughs) All right, thank you. – Okay.
(audience applauds) I don’t know, would it help
with the window being closed? I hate to have to compete
with such a great band. Okay. Well, John, thank you very
much for your introduction, and also thank you to the Center for Studies
in Higher Education for inviting me to participate
in your excellent lectures. My topic today will be the history of the Haas School of Business, the triumph of a different model, and that’s when I want to take you along. The Haas School of Business may seem like a monolithic structure sitting on a hill above
the rest of campus, but in fact, since its founding, it has always been
integral to the university and gained its stature
precisely because it was so much part of the Berkeley Campus. To give you some background, interest in including business studies or commerce as it was called had its origins in the founding
of the State of California. Provision for teaching commerce along with other studies such
as agriculture, mechanic arts, mines, military science, engineering, law, and medicine are specifically enumerated
in the Organic Act, the constitutional provision in 1868, which established the
University of California. It’s important to note that California is and remains the only state that makes provision in its constitution for the teaching of commerce. The fields of study were
to be added gradually, and it was not until 30 years after the
passage of the Organic Act that provision for commerce
was implemented on our campus. There are many reasons at
the end of the 19th century for interest in introducing
commerce into the study of, the course of study at the university. San Francisco was the financial
capital of the West Coast and an important center
of business development. Business activity was
becoming more complex as well as an increasingly important part of the state’s economy. World events focused attention on relationships with
Asia and the Pacific Rim as the victory of the United States in the Spanish American War led to acquisition of the
Philippines, Puerto Rico, and Guam and the annexation of Hawaii. At the campus level, introducing commerce as
a formal field of study was expected to increase enrollments and gain greater support from the business community of the state. There was also awareness that business was one of
the last major areas of life that had not received attention as a focus of specialized study. Adding new courses of study
into American universities received increased support
starting particularly during the last quarter
of the 19th century. Higher education attracted the interest and the financial resources of leading industrialists,
entrepreneurs, and businessmen, many of whom hoped to create
monuments to themselves. Many familiar names include
Carnegie, Rockefeller, Vanderbilt, Tulane, Rice, and Stanford. Looking specifically at
business education nationally, the first university-associated
program in business was endowed in 1881 at the
University of Pennsylvania by Joseph Wharton, a
successful industrialist who hoped that the program
would aid his campaign for a protective tariff. At Berkeley, the university administration had become increasingly
more favorably disposed to introducing the study of commerce. For many years, Arthur
Rodgers, a prominent attorney and member of the Board of Regents, had argued that the future of world trade was in the Pacific Basin and that California was
strategically placed to benefit from this development. He expounded that we need all citizens to be Pacific statesmen and that the university must
establish, and I’m quoting, “a College of Commerce “which shall inspire all
subordinate education “and educate merchants
who shall become leaders “in the commercial
enterprises of the world.” Rodgers’ messages were favorably
received and generalized by the new and increasingly
entrepreneurial breed of university
administrators at Berkeley. Envisioning a more
active and directive role for higher education in California, Presidents Martin Kellogg and particularly his
successor Benjamin Ide Wheeler were receptive to all initiatives that would further the
development of the university. Within this favorable environment, the prospect of a wealthy donor immediately drew their
undivided attention. On September 13th, 1898, much to the delight of
the university community and one month after the formal opening of the College of Commerce, announcement was made
of a gift of $463,000, today approximately $14 million, which was directed by the regents for the establishment of
a College of Commerce. Clara Jane Flood must be regarded as a highly unlikely person to make such a substantial
gift to the university and particularly for creation
of a program in business. Jenny, as she was known, was
educated by private teachers and also at Notre Dame
Convent in San Jose. Her wealth had been inherited from her father, James Clair Flood, whose fortune was derived
from Nevada’s Comstock Lode, the largest silver deposit in history. Known as the Bonanza Prince, his obituary in the New York Times in 1889 noted that his group, and I’m gonna quote, “added millions to the world’s wealth, “ruined thousands of men and women, “and marked a new era of
life on the Pacific Slope.” It’s possible only to
conjecture why Miss Flood chose to make this gift to the university. Very likely, she had been
advised by Arthur Rodgers, her father’s legal advisor,
friend, and a fellow regent. Also she may well have been influenced by the activities of
Phoebe Apperson Hearst, who had gained prominence
with her generous gifts and involvement with the university. Miss Flood may also have been made aware of the rumor that the
University of Chicago was planning imminently to announce the introduction of an
academic program in business. The hope of the Berkeley community was that it could claim
the second slot nationally after the Wharton School. Finally, Cora Jane Flood
may have been influenced by the rapid growth
and increasing eminence of the University of California. In 1900, for example, the
university was ranked second in undergraduate enrollment nationally and fifth in total number of students. In the 1907 book by Edwin Slosson called Great American Universities, Berkeley is included in the top 10 universities in the country. Once established within the university, high expectations for
the new business program were quickly espoused. The College of Commerce
was expected to fit in with the top tier American
professional schools that emphasized the German
model of teaching and research. In addition, it embodied
the public services ethic of a land grant university. In his inaugural address in 1899, President Wheeler set forth
that the new program in commerce was expected to, and I’m
gonna quote his words, “to develop a class of merchants “whose intelligence, comprehensiveness, “training, and dignity of
principle and of character “will exalt a sense of professional honor “which is at once moral, conservative, “adventurous, and wise.” Being politically
astute, President Wheeler also heard the voices emanating from the growing progressive
movement in California. The progressives saw the state as awash in concentrated economic power and corrupt party politics and in need of being cleaned up. What better place than
the public university and specifically the College of Commerce to address this challenge by combining excellent scholarship with enlightened public service. The progressive message quickly took hold so that from this time forward business education at Berkeley was never to be narrowly defined only as education for business. The first announcement
of the college in 1898 stated its purpose as follows. This college is intended
to afford an opportunity for the scientific study of commerce and all its relations and for a higher education of businessmen and higher officers of the Civil Service. Laying out the basic
elements of its curriculum, the announcement set out the objectives of the four year program, A, a certain amount of
broad general culture, B, studies which may be regarded as supplying all the
essential mental tools of the trade for the businessman, and C, the opportunity
to acquire some knowledge of a particular line of trade. The announcement set forth
that studied subjects would not only be all movements of trade but all the conditions, legal, political, economic, and physical, upon which trade depends. The study of business took
its place at the university by fitting naturally into
the traditional structure. The college consisted of an undergraduate course
of study leading to a degree. A broad, basic education
was the first priority, and to this end, the College of Commerce adopted the same requirements as the Colleges of Liberal Studies. Half the four year program’s courses covered general education. 1/4 could be chosen from
advanced courses in one area and 1/4 in any course
offered on the campus. In reality, the economics courses offered in the Department of
History and Political Science came closer than any other
fields providing the program with a theoretical framework
and a scientific base. In addition, the close association with the Department of Economics, which was founded in 1902, gave it a strong tie to the liberal arts and a derived academic respectability. Acceptance by the college community was facilitated by the acknowledgement that the college had a purpose greater than providing instruction
in business topics. The emphasis on the broad nature of the undergraduate program effectively eliminated
much choice of electives. The choices were limited
even more by the requirement of a college of 18 units of
a modern foreign language and eight units of
geography for graduation. The broad requirements for
commerce students meant also that they were taught by a
faculty from across the campus. In spite of the limited
practical orientation of business studies,
enrollment grew rapidly. From its first class of
three students in 1898, in five years, it numbered almost 5% of the entering undergraduate
class of the university. The pioneering faculty that gathered for the teaching of commerce
during its first decade was a highly eminent group. They came to Berkeley from
highly regarded universities such as Harvard, Chicago, and Cornell. Several had studied at German universities with its unique approach
to higher education. In addition to being widely
respected for their scholarship, they were often the first academics to focus on their areas of specialization. They created advanced knowledge in fields not previously
open to scholarship and with their writings and teachings, shaped the direction of business education on the Berkeley Campus as well as the direction of their fields and of public policy. Interesting examples of the efforts of the College of Commerce to address the tension between the desire to serve the specialized needs
of the business community and its efforts to remain legitimate within the scholarly
community of the campus can be seen in the development of the first course in marketing, one of the first courses of marketing to be taught in an American university. In 1902, Simon Litman, a
European-trained instructor, set about to develop a course, which was to include the concepts of distribution, trade, and commerce. Turning to German treatises and the assumption that
marketing methods did not differ substantially from country to country, he described his course
as follows, and I quote, “from caravans and convoys,
from markets and fairs, “from fortified settlements “established by adventurous
merchants in foreign lands “to consideration of modern methods “of selling and buying goods.” Simon Litman left Berkeley in 1908, but his ability to integrate
his international perspectives with contemporary problems led to his subsequent
acknowledgement as a national leader in marketing education and
international marketing. Similarly in 1904, Henry Rand Hatfield was appointed Associate
Professor of Accounting, becoming the first full-time academic at an American university with a professorial rank in accounting in spite of his having no formal training or study in the field. His background had included a
doctorate in political economy from the University of
Chicago and study in Germany. His modern text, his classic
text, Modern Accounting, its Principles, and Some of its Problems brought together not only American sources but a vast array of codes,
decisions, and precedents from England and the European continent and established Hatfield as the
Dean of accounting teachers. I also should note that
38,000 copies of his book were sold before the
first revisions in 1927. A third significant addition
to the commerce faculty was made in 1913 with the
appointment of Carlton Parker as Assistant Professor
of Industrial Economy. Parker, a graduate of Berkeley who had done his graduate work at Harvard, was assigned to teach the basic course in labor problems and organization as well as two courses
in modern industrialism and the American workmen. Parker’s approach to labor topics was highly unconventional, drawing on his own experience
with migrant laborers and other disadvantaged groups. He studied California’s
migrant populations, most of them Mexican and undocumented, first-hand by going into the camps and interviewing the workers. In the classroom, he taught that economics needed to reject the
hedonistic assumptions at the base of economics and ally itself with the
sciences of human behavior, psychology, and biology. The New York Republic, the New Republic was to cite Parker as quote, “the first of our economists “not only to analyze
the psychology of labor “but to make his analysis the basis “for an applied technique “of industrial and social reconstruction.” The period from 1910 saw the increase in number of practical business courses. Courses appeared to be
added to the curriculum as their importance
appeared in the economy, and by the 1920s, the College of Commerce listed majors in nine fields. For students studying business,
the curriculum was rich, but it was also restrictive. The announcement for the college for 1922 continued to stress the importance
of broader academic study and ended a description
of a typical program for the junior and senior years by stating, and I quote, “No man is well-trained in commerce “who is trained in commerce only.” This statement was in
line with the regulation that the liberal offerings of the college were dictated by letters in sciences and were the same for
all enrolled students. It’s important to keep in mind that all though the core
faculty giving courses directly related to commerce was small, the faculty listings include
all instructors giving courses open to students enrolled in the college. That could include a
wide variety of courses, from mathematics to Oriental
literature for example. In reality, the largest number of courses was chosen from the economics department, and it was that department
that became home for the commerce faculty. In looking at the announcements of courses for the decades leading up
to the 1930s for example, it’s difficult to see
the College of Commerce and the Economics Department
as separate programs. The studies appear to be interchangeable. In addition, the Economics Department was the key personnel
unit for commerce faculty. This very close association
served well for both purposes. The Economics Department
could thrive and grow as a result of the significant funding it received, particularly
from the Flood Endowment, and the business program
gained campus legitimacy derived from its close association with this major academic department. The perception that business studies is rooted in the strong academic tradition continues to this present day. E.T. Grether, the dean of the
business school for 20 years, continued throughout his entire career to be identified as the
Flood Professor of Economics. In addition, two of the
five Berkeley economists to hold Nobel Prizes in Economic Sciences, John Harsanyi and Oliver Williamson, were both business school professors. The Depression of the
1930s and its aftermath focused attention on the country’s business and economic climate and provided opportunities for the College of Commerce faculty to participate in the public debate around broader and more
policy-oriented issues. There was an increase
in curricular offerings as a result of the greater complexity of business organizations and increased governmental participation in business affairs. Increasingly, the research
focus for commerceship faculty shifted toward issues of business
and government relations, the effects of the New Deal, and the social implications
of economic disruption. These interests brought
the commerce faculty closer to the work of
many others on the campus. The economic crisis also drew large numbers of the business faculty into public service at all levels. Courses proliferated and enrollments grew
significantly during this period, but the announcement of the
college continued to assert that its mission was, quote, “to provide students with a sound, “non-specialized mental training “which would enable them “to attack business problems effectively.” By the end of the 1930s, the Berkeley Campus and
the College of Commerce both experienced tremendous
growth in enrollment and in programmatic offerings. For the campus, enrollment grew from approximately 12,000 in 1930 to almost 18,000 in 1939, an increase of more than 50%. For the college, the
percentage increase was similar and contributed to its role as a major presence on the campus. Paradoxically however,
the College of Commerce continued to be a traditional four year undergraduate program tied tightly to the Economics Department. Efforts had been made as early as 1916 to change the status of that program but had been unsuccessful principally because
campus budget committees or academic senate committees failed to accept that
this study of business could fit into the strong
academic community. With the appointment of a new
dean, Professor E.T. Grether, concerted efforts were revived to give the business program
a more independent status. As the first step in this process, a proposal was approved in 1942 to create the Department
of Business Administration. The new department also
provided the opportunity to modernize the name
of the business program. Now designated a department, the program could claim its own faculty instead of having to
borrow from across campus. For the first time since its founding, the dean could control the
hiring and promotion of faculty and could seek out individuals who had a primary professional commitment to the goals of the business program. Having gained departmental status, the groundwork was laid for conversion of the college to a school. This was officially accomplished in 1943 with a two year upper division program leading to a Bachelor of Science degree and a graduate program
leading to the MBA degree. Although the MBA degree had
been the recognized degree at most American business schools, it was not until almost 50 years after the founding of
the business program here that the degree was
introduced at Berkeley. At the commencement in 1944, the MBA degree was awarded to three students. Along with structural changes,
business school faculty organized to solidify its campus position by creating organized research units. The Bureau of Business
and Economic Research, the first of its kind on the West Coast, was established in 1941 for the purpose of facilitating research into the problems of
economics and business with particular focus on
California and the Pacific Coast. Similarly, in 1945, the
California Legislature passed legislation authorizing the Institute
of Industrial Relations as an interdisciplinary research center on both the Berkeley
and the UCLA campuses. Under the leadership of Clark
Kerr, its first director, a scholarly approach
coalesced on the campus that came to be known
as the California School or the Berkeley School. The relationship between
the School of Business and the Economics Department continued initially to
be operationally close. Announcements for the business school listed the courses in two groupings, business administration and economics. Faculty members were at times appointed in business administration and at other times to economics according to their expertise and the resources available in each group. Gradually, however, fewer
professors in economics taught the offerings
for business students, and the economists hired
directly into the business school formed a larger and more
identifiable cohort. Dean Grether’s ambitions
for the business school were supported by his active recruiting. His criteria for an offer was whether a prospect could belong first in the university and
second in the business school. The dean limited his search
to a handful of schools and found the greatest number
of prospects in the East, particularly at Harvard. One estimate held that in the 1950s, 80% of the business school
faculty were Harvard PhDs. Some opined that both the business and the economics faculty at Berkeley could be considered satellites of Harvard’s economics department. In general, however, the
emphasis for each department gained some differentiation as Dean Grether tended
to recruit young scholars who had a greater interest in applied rather than theoretical economics. Unlike most business
schools in the country, the Berkeley faculty refused to admit to teaching in the field of management and clung to their primary
identification with economics. In fact, some faculty were indignant at being referred to
as teaching management while others described
themselves as quote, “not business administration types.” Attention next turned to
introducing a doctoral degree into the business program. Initially, support for
the degree was not great since advanced students in accounting, marketing, and finance could
earn a PhD in Economics. By 1955, however, stronger
arguments were made about the greater complexity of modern business organizations and that business studies
now included extensive areas in which departments of
economics had little interest. The first PhD in Business Administration was awarded in 1961. In 1959, the greatly increased interest in American business education led two major foundations
to commission reports. The Ford Foundation study
known for its authors Robert Gordon and James Howell and the Carnegie Corporation
report offered by Frank Pierson came to similar highly
critical conclusions about the state of university
business education, focusing on low academic
standards, excessive vocationalism, neglect of research, and
poor quality of students. Paradoxically, the
conclusions of the author tended to validate the program that had
developed at Berkeley. They emphasized that business
schools needed to move toward a broader and
academically rigorous program with higher standards for
both faculty and students and greater appreciation of
the contributions to be made by integrating a broad variety
of non-business disciplines. They stressed the importance
of an undergraduate program emphasizing the liberal
arts and social sciences. At the graduate level, the Berkeley MBA was set forth as an excellent example at which a graduate core was developed by which students spent their first year in more general topics before going on to
specialization and electives. In addition, as a result of the reports, at almost all elite business schools, economists came to dominate
business school faculties, not only in finance but
in other areas as well. This approach, of course,
was very much in line with what business studies
at Berkeley had always been. It must be regarded as ironic that while business studies at Berkeley had been a very popular
major with high enrollments, it never had a permanent home of its own. In the late 1950s, however,
generous state support set a Berkeley Campus
building program in high gear, and a building for business
was now on the drawing board. In selecting a site, Dean Grether was clear in his
desire for a central location that integrated the business school into the rest of the campus, both physically and academically. Thus, the new business school building became part of the planning for the proposed social sciences
and administrative cluster near the main library. Barrows Hall, occupied in 1964, combined business with the
Departments of Economics, Political Science, and Sociology, along with a shared
social science library. Having a home in Barrows Hall created an anomalous situation for the Berkeley Business School. It reinforced the view on campus that the business faculty was a group of serious scholars
doing serious research. However, the physical location and its stated integration
with the rest of campus created the perception nationally that Business at Berkeley
did not have the cachet of more managerial-oriented schools such as Harvard, Stanford, and MIT. Settling into a permanent home was accompanied by the introduction of business and public policy as a new formal area
of study and research. The first announcement of
the College of Congress had stated that course
offerings would not be all, quote, “movements of trade “but all the conditions
of legal, political, “economical, and physical
upon which trade depends.” Not until 1959 was a formal program
adopted into the curriculum to incorporate political,
social, and legal contexts into the business, into
business instruction. The new program was accompanied by hiring of additional faculty, particularly those legally trained but then initially interdisciplinary and the introduction of a new and required course in the area. Berkeley was not alone in
developing this program, but much of the earliest
and most significant work was done here, and the program was nationally acknowledged
as being referred to as the Berkeley School of
Social Issues in Management. The strength of the
program was confirmed also when Berkeley awarded the first PhD in the field of business
and public policy, one of the few business schools nationally to award a doctorate in this area. In addition to curricular innovation, the School of Business
Administration in the late 1960s introduced one of the earliest and most comprehensive programs to respond to the economic
and social inequities existing in American cities. The Office of Urban
Programs was established to boost economic development in the poorer areas of
Berkeley and Oakland. This included assigning students to provide assistance to small businesses as well as expanding the
opportunities for graduate business to a pool of minority
and low-income students. In the 1980s, a strongly
more quantitative approach to business was added to the curriculum, but it took its place
together with new courses in the area of international
business, urban affairs, entrepreneurship, and
non-profit management. However within a climate
of decreasing resources and the increased popularity
of the MBA degree, the issue of the
undergraduate business school was resurrected. Once again, in spite of strong pressure to abolish the small, elite
undergraduate program, it was argued that not only did the school provide an excellent
general purpose education, but it set the model nationally for a full service business program. Of great importance, the
undergraduate program provided opportunities for
many students of the state who had been unable to
financially earn an MBA degree. The issue was settled when
the vote of the faculty confirmed by the Academic Senate was to retain the upper division program, upper division two year program as it had been for the previous 40 years, also confirming it as the only undergraduate school of
business in the UC system. Complaints about the
inadequacies of Barrows Hall had abounded since its opening. But by the end of the 1970s, the frustrating
limitations of the building became a perpetual topic of discussion for faculty, students, and alumni. It was pointed out that
the business school was the only professional
school on the campus without a building of its own. By the end of the 1980s, however, a campus site was chosen, and a significant organizational
structure put in place for a capital campaign for
a new building for business. In 1989, the capstone gift was secured from the Haas Family Foundation, and the School was formally
named the Walter Haas, was formally named for Walter Haas Senior who had graduated with the class of 1910. Construction was begun in 1992 and completed in 1995. The entire cost of the
$55 million building was financed by private contributions. The architectural critic for
the New York Times observed that the Haas School was, quote, “one of the finest academic
buildings in recent years, “that it was full of wisdom
about the nature of community, “the nature of campuses,
and the nature of business.” As it had displayed from its beginning, the business program
outlined in the late 1980s reinforced the view that, quote, “instead of
being a sole provider, “it must expand to facilitate, integrate, “and broker the facilities
of the whole campus.” Among the programs introduced to develop further at this time were programs in organizational strategy, program in innovation
and entrepreneurship, and a program in
international competitiveness. Also included were linkages
to departments on campus such as law, public policy,
engineering, city planning, environmental design, public
health, and Asian studies. The impulse to make a difference
in the world also impelled the Berkeley business
faculty service consultants to the developing economy of Indonesia, where a group of young economists gained the title of the Berkeley Mafia, and to assist with the early development of the Dalian Institute
of Technology in China and partner with Saint
Petersburg University to develop the first
American style Russian, American style business school
in a Russian university. The direction it’s put
forth a 118 years ago continued to this day. The tenure graduate division
review completed in 1995 observed that the Haas School was regarded by many as quote, “the most scholarly of the
major business schools,” and that quote, “the creative
contributions of the faculty “are targeted toward
audiences of scholars, “not business practitioners.” In addition, Dean Richard Lyons had captured the qualities of leadership that were rooted in the basic values of the school’s founding by setting up as a Berkeley brand questioning the status quo, confidence without attitude, being students always,
and going beyond yourself. The Haas School is a leading
American business school. But most importantly,
it enjoys this status because it has been part of
a great public university. It absorbed the values,
utilized campus resources, and customized its needs to
create a unique institution. We at Berkeley can feel justifiably proud that academic excellence
combined with a unique culture and a congenial environment have resulted in the triumph
of a different model. Thank you. (audience applauds) – Thank you so much. Now we’re gonna go to some questions, but I’m gonna ask the first question. Then we’ll (laughs) to Ami. And that is I noticed in your book you do discuss international students in the College of Commerce, and in around 1921, there
was quite a controversy on the campus about the number
of international students. This sounds, rings a little
familiar to you. (laughs) And part of the justification was that having a lot of international
students at Berkeley and in the College of Commerce was part of this outreach effort, this kind of seeing the world
and especially Asia as part of our ring of influence and knowledge gathering, but there is also some who have said this is all part of a larger
kind of imperialistic approach that Berkeley took. I don’t if you’re aware of some literature that writes on that. But could you just comment a little bit about the role of international students that you’re aware of in the
College of Commerce over time? – Well, there were international students, but in the early days, that was just usually a very small number, individuals, two, three, but certainly not a larger group. Later days, most certainly
the Economics Department was attractive to
international students and many came here. But I am not aware of the fact that there was
any tension around that or that it was done as
an imperialistic approach to bringing them here to this campus. You probably know much more
than I do about that topic. – [John] Okay. – [Audience Member] Hi
Sandra, thanks very much for your interesting
history on this school. You didn’t mention anything
about the executive MBA, which is a very important financial part of the school.
– Yes. – [Audience Member] And I
wonder if you could comment about the extent to which it subsidizes the Berkeley model and the extent to which
perhaps it undermines it. And what does it mean
to have this very strong and highly internationally oriented self-funding subsidizing executive MBA as part of the larger school
of business administration? – The executive MBA programs
were really introduced in the late ’60s, early ’70s and gained great attention and enrollment after that time. Yes, they are absolutely a big source of income for the school and, I am not, however, I don’t essentially get the sense that the program on campus is undermined by the executive programs. They’re very very
different constituencies. And while I know the school and the campus enjoys the income that comes in that way, I think the program
itself, the school itself, really is producing, I’ll
use this, a different model than what there are actually presenting in
the executive programs. – [Audience Member] So
you don’t consider it part of the school, just a separate. – Oh, it’s definitely part
of the larger program, but I don’t feel that it is drawing attention away or support away, better term, from the basic program. The undergraduate program here at Berkeley is highly highly subscribed, very popular. So that enrollment is never a question. The graduate program, the school of, the regular on-campus graduate programs are highly sought after for admission. And they’re different worlds. The executive MBA, which is an excellent program too, definitely speaks to a
different constituency, and I don’t have the feeling
that we’ve got a tension there that is undermining the programs. – [Lowell] Yes, thank you very much. My name is Lowell Morecroft, and I’m a member of the
community, not an academic. And when I drifted onto
campus as a retiree in the early 2000s and began attending all
kinds of events like this, I discovered the business school library, which was quite extensive, and I loved the building too. It’s, I forget the architect but, and anyway, I felt very comfortable there, and there was a lot of critical
literature in the library, a fair number of Marxist treatments and also just contemporary
critiques of business, and I found that, you know,
pleasantly surprising, I guess. So I developed an extensive
reading list of books only to discover that the library had decided to disband itself
as a repository of books. And so they moved, and I was fearful of the
loss of all these books that I was reading. I thought they would get dumped in the Northern California
Regional Library facility. Instead, almost all of them went to Doe, and at least all of my
reading list, maybe 200 books, and I took that as some sort
of index of reintegration of business with economics because economics is in
Evans Halls just up the hill. So I was wondering
whether you might comment on the library if you
know about it, thank you. – [John] You’re gonna comment, right? – Okay. (laughs) Yeah. Well, the opening of the
Long Business Library was a major major accomplishment for those interested in
the School of Business because they had never had
a library of their own. But when the new school
opened, that became theirs and as I say a great joy. I have a feeling that
the financial situation of the various libraries on campus is probably dictating where, which ones will be able to
maintain all of the resources that they would like to have. And finances being what they
are, particularly now, the fact that so much has moved to Doe tells that the technical support and other facilities that, other
services at that library are still available, but
the collection of books, unfortunately, no longer is there. – [John] Please short questions, and please identify yourself. – [Ed] Is that appropriate for me to say? – No, you can. – [Ed] Okay. Ed Epstein, I’m a Professor
Emeritus at the Haas School. Several points. One, in terms of executive education, there is greater emphasis than
in the traditional programs in having adjuncts, very often drawn from professional
experiences in business or public administration or whatever to work with these different students who are looking for a much
more acquired approach. I don’t think it’s undermined,
if you will, the ethos, the teaching and ethos of the core faculty. Second point is I think Long Library, remember Longs Drugs, that was the donors, in common with libraries across campus, are increasingly or is
increasingly digitalized. So the notion is, most
certainly with journals and also with a lot of books,
that you can get them online, and that the space can be
better utilized in that fashion. Thirdly, you might be surprised that you found
readings by Marx and Max Weber and all sorts of folk who are – [John] They got rid of
those books first, right? (laughs) – [Ed] No, that’s because.
– Not here, not with Berkeley. – [Ed] They were assigned in courses and taught in courses. Going to the point that
Sandra was making so. – [John] Okay, could I? Do you want to make a comment, Sandra? – I don’t think. – [Sheila] Hi, thank you for your talk. I’m Sheila Humphreys from
the College of Engineering. I got here 10 minutes late so I apologize if you covered this, but did you speak at all
about the early women who attended the College of Commerce and then their growth
throughout the decades? I’m very aware of Janet
Yellen and Laura Tyson as prominent faculty
and government service, but I haven’t, I don’t
know anything about the growth of women over time. – I did not include the topic of women at the business school even though I could because
I did follow it along. Actually, there was a woman who was in the graduating class of 1903. So there was a woman then, and along the way, there
were small numbers, nothing large except during wartime when you would have had a
greater representation of women. And but not until the late ’70s, late ’60s, rather, early ’70s do you get a critical, I’ll
use the word critical mass, of women in the business
school as well as law school and the various professional programs. You know with engineering when you, it’s later I would assume
than the early ’70s, but with business, it is at that point. You mentioned two very prominent women, Laura Tyson who was dean of the school and as well as the economic advisor during the Clinton Administration and Janet Yellen who currently is heading up the Federal Reserve Bank. So women at this point, I think at last look, were probably more than half
of the enrolled students in the School of Business. – [Sheila] Is, when you talked
a critical mass, you mean 15. – [John] Sorry, can you use
this, sorry, we’re using it. – [Sheila] Critical mass, 15%? – Of? – [Sheila] You referred to they’re achieving critical mass.
– A larger number, yes. – [Sheila] 15%?
– Yes, yeah. By the end of the ’60s,
beginning of the ’70s, you’re getting most
certainly, and I can provide, I can give you this information. I did not include that because that’s another whole
topic, the role of women. But it is an interesting.
– Well, maybe you could comment a little more
because I know in your book, you also, there are a number of women who were on the faculty
or were teaching at least, beginning in the ’30s, is that correct? – Well, there was one woman.
– Small numbers, oh. – Teaching in the faculty in the 1930s who essentially taught accounting. She was the only doctoral student of Professor Hatfield, and she taught in a, she never had a full-time
faculty appointment but essentially in an adjunct position, was a very very popular teacher and retired as a, I think they finally made Assistant Professor Emeritus for her. Not until approximately
1960 does the first appointment occur for a woman to the business faculty, and that’s Karlene Roberts
who is now Emeritus but was essentially the first woman to be given a faculty appointment. Since that point, women have been hired as particular fields seemed to be introduced that where they’ve got, where they’ve been able
to get good training. But I don’t know the current number on the Berkeley faculty. It’s large. It’s significant, but I
can’t give you a percentage. – [Sheila] And the name of
the woman who was teaching, Hatfield’s student? – Yeah, her name, her last name was Green. I’m trying to think of her first name.
– That’s okay. – I can get it to you.
– Later, yeah. – So perhaps one final question, and because we need to close the session, and we have lunch for those who are here who’d like to enjoy that. And my question is what could you say are one of the two, well, major studies that came out of the College of Commerce that had an impact on California and its development economically? I know that there are a couple
of, right, important studies and things that came out
of the College of Commerce. – Well, you had, of course, the Institute of Industrial Relations, and you had the various programs that had, programs going with the state. As far as a specific program itself, I’m not really thinking of a specific one that can help you. They, there was always a very close relationship of faculty in the school to what was going on in the state. There was also a very
interesting relationship between Dean Grether and Earl Warren when he was governor of
the State of California. In fact, Earl Warren at various times would call Dean Grether to find out what was
happening on the campus, and the two of them had a
very special relationship that ended with Dean
Grether also being appointed to major committees at
the state level but. – Okay. – There was always
public service as basic. – Okay, with that, that’s a nice tie-in because Earl Warren played in the band. – Oh my goodness gracious.
(laughs) – And I don’t know if you
know who was the majorette, Robert Gordon Sproul. So that’s a throwback.
– Oh, that was early. – But anyway. – Was there another? – [Audience Member] John.
– Yeah, yeah. – [Audience Member] Studies
by Sherman Maisel, studies by. – Oh, that’s right, in real estate – [Audience Member]
Studies by Sherman Maizel and also Fred Balderston. – Yeah, Fred. – [Audience Member] Had a large impact in terms of financial
regulation in California. – Okay, that’s great, thank you, and also to note that
Fred Balderston also wrote kind of the book about college administration
and finance actually for many long periods.
– That’s right. – But with that, thank
you so much, Sandra. A round of applause for her. (audience applauds) (tribal drum music)