The primary mission of universities is to cultivate responsible leaders capable of positively impacting their communities. Nepali universities stand at a crossroads in this mission, with a unique opportunity to embrace the United Nations-supported Principles for Responsible Management Education (PRME) framework. This global initiative provides a roadmap for universities to guide their management programmes toward producing ethical and sustainable leaders. PRME equips future business leaders with the skills to balance economic, environmental and social objectives and strongly emphasises advancing the Sustainable Development Goals (SDGs). With over 800 worldwide institutions committed to this initiative, PRME represents the largest collaboration between the UN and higher education institutions.

Regrettably, Nepali universities have yet to demonstrate a strong commitment to integrating the PRME framework or sustainable business practices into their programmes. As the world increasingly looks to business leaders for solutions to global challenges, the time has come for our academic institutions to align their mission with this transformative initiative.

A global responsibility

Responsible management education is not new—it has been discussed for nearly 50 years. However, it was only in 2007 that former UN Secretary-General Ban Ki-moon launched PRME under the UN Global Compact as a response to growing concerns about unethical behaviour in the business world. Updated in 2023, the PRME framework consists of seven key principles: Purpose, values, teach, research, partner, practice, and share. These principles are designed to help universities create programmes that produce responsible leaders who contribute to a more just and sustainable society.

By adopting the framework, universities can align their educational goals with the 17 SDGs—a global blueprint for peace and prosperity for people and the planet. For business schools, the practical focus on the SDGs in teaching encourages the development of responsible management practices that align with global targets. The SDGs provide a tangible way to assess progress, offering management educators clear benchmarks to work towards developing future leaders.

The gap in Nepali universities

In Nepal, management education is highly sought-after, with four major universities—Tribhuvan University, Pokhara University, Kathmandu University and Purbanchal University—offering business degrees at both undergraduate and postgraduate levels. These institutions collectively educate the largest cohort of Nepalese students in business disciplines such as BBA, BBS, BBM, MBS and MBA programmes.

Despite their reach and influence, reviewing these universities’ offerings reveals an alarming lack of emphasis on responsible management and sustainability. For instance, Tribhuvan University’s Faculty of Management claims to produce “socially responsible entrepreneurs,” while Pokhara University aims to develop “responsible citizens of the world.” Yet, neither provides clear details on how these objectives are met nor whether PRME principles are incorporated into the curriculum. Meanwhile, Kathmandu University and Purbanchal University do not mention responsible management at all.

These omissions are not merely theoretical. They signal a disconnect between the global shift towards sustainable business practices and the business education offered in Nepal. By failing to integrate PRME, our universities risk producing ill-equipped leaders to address Nepal’s pressing challenges, such as sustainable development, inequality and environmental degradation.

Why PRME matters for Nepal

Nepal’s unique development challenges require responsible leadership. The adoption of PRME could be a transformative step, as it provides a framework for Nepali universities to fulfil their social contract with students and the nation. It is no longer enough for universities to offer programmes based on Western business models that prioritise profit over people. Instead, management programmes must cultivate critical thinkers who understand the need for ethical leadership and sustainable practices that align with the needs of Nepal’s local business context.

However, Nepali universities face significant barriers. The commercialisation of higher education has pushed many institutions to adopt Western principles that may not align with local needs. Additionally, global accreditation pressures have driven universities to compete with private academic institutions, some of which follow foreign education models that are not regulated by Nepal’s national education body. These trends make it harder for universities to create innovative curricula that challenge unsustainable industry practices and foster the development of responsible leaders.

A Roadmap for change

Despite these challenges, management educators in Nepal have a pivotal role in integrating PRME into three critical areas: Teaching, research and engagement.

Curriculum reform is essential to embedding PRME in Nepal’s management programmes. Educators should prioritise creating courses on responsible leadership, sustainable business practices and ethical decision-making. Sharing content through academic journals and online platforms, as well as conducting seminars on PRME-related topics will expose students to the latest thinking on responsible management. Regular seminars and workshops should be organised to bring together academics, students and practitioners to discuss the application of these principles in Nepal’s context.

Management educators can contribute by researching issues directly affecting Nepal’s economic and social progress, such as the impact of gender inequality on growth, the role of businesses in reducing corruption and sustainable food security. Collaborative research efforts can provide new insights and inform national policy and business practices. These findings will directly benefit the development of responsible leaders capable of addressing Nepal’s pressing challenges.

Similarly, active engagement with governments, businesses and the media is crucial for building sustainability capacity. This engagement will ensure that Nepal’s economic growth is both inclusive and sustainable, benefiting all sections of society. By partnering with the private sector, educators can also provide students with real-world examples of responsible management practices, enriching their learning experience.

By embracing the PRME framework, Nepali universities can fulfil their obligation to prepare students for the complex challenges of the modern world. Beyond technical skills, universities must instil in future leaders a deep commitment to sustainability, ethics and social responsibility. The framework offers a practical pathway to achieve this, helping universities align their curricula with the global call for responsible management.

It is time for Nepali universities to move beyond traditional business education models and adopt a forward-looking approach that addresses local and global challenges. Only then can they produce the leaders Nepal needs—those who will not only excel in the global market but also contribute to creating a more sustainable future for all, contributing to the real achievement of SGDs in Nepal.