Stanford Graduate School of Business (GSB) has received the largest gift in its history, $150 million from alumnus Robert King (MBA ’60) and his wife Dorothy, to focus on alleviating poverty in emerging markets, the Financial Times reports. The generous gift will establish the Institute for Innovation in Developing Economies, charged with finding ways to apply the entrepreneurial skills of the school’s students to spur economic growth.
According to King and his wife, their interest in developing economies was an outgrowth of hosting some of Stanford’s international students in their home, including a Chinese student who was instrumental in founding Baidu, a Chinese-language search engine. King’s venture investment firm, Peninsular Capital, provided seed money to Baidu, which has since grown into an internet giant employing more than 10,000 people in China.
King says that providing seed money or microfinancing will not be the primary focus of this new venture with Stanford GSB, which will instead focus on growing established businesses. “One of the challenges is to take businesses to scale,” King told the FT. “It’s the on-the-ground work that really excites me.”
The new institute will work with not-for-profit organizations, NGOs and entrepreneurs in developing countries, and Stanford MBA students will be encouraged to participate in related projects between their first and second years of study, according to the FT report. In addition to this on-the-ground work, the institute also will focus on academic research and teaching through courses for Stanford students and alumni as well as for entrepreneurs from developing countries, whose study in California the institute will fund.
“The end goal here is poverty alleviation and capacity building for Stanford University,” Dean Garth Saloner told the FT. He added that the multidisciplinary approach of the center – although housed at the business school, every department of the university could be involved – distinguishes it from other initiatives. “I do think directionally that this (alleviating poverty in developing economies) is the sort of activity that people do not usually associate with a business school,” he said.
The FT article notes that Stanford has been leading the way among top business school in developing interdisciplinary teaching in response to growing recognition that public policy, law and regulation increasingly inform business decisions. According to the FT report, one in six Stanford MBA students are part of a double degree program, also working toward degrees in engineering, law, or public policy. Saloner told the FT that he hopes to increase that number to one in four.
The FT reports that the agreement between Stanford GSB and the Kings took 18 months to negotiate. The Kings have given $100 million to fund the institute and committed an additional $50 million in matched funding in an effort to involve other donors in the project.
For the complete Financial Times article, click here.
Read the full article: Stanford Graduate School of Business Receives Largest Ever Alumni Gift to Combat Poverty in Emerging Markets