Business School Accreditation: How Does It Work?
All reputable colleges and universities hold institutional accreditation from agencies recognized by the Department of Education and the Council for Higher Education Accreditation. As a student, you should only consider accredited schools.
Academic departments and programs can also hold specialized accreditations, complementing the college or university’s institutional accreditation. Though optional, these credentials signal that the specially accredited programs meet elevated standards of academic rigor.
Many top-ranked business departments and degree programs hold specialized business school accreditations. Three main accreditors offer these endorsements:
- Association to Advance Collegiate Schools of Business (AACSB)
- Accreditation Council for Business Schools and Programs (ACBSP)
- International Accreditation Council for Business Education (IACBE)
These three accreditors evaluate undergraduate and graduate business programs, including MBA programs. They set standards for business education, conduct site reviews, and regularly monitor accredited business schools. If accredited schools fail to meet standards, they can lose accreditation.
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Comparing Accredited Business Schools
Business school accreditation helps prospective students compare and evaluate their learning options. It functions as a kind of consumer protection, signaling that the specially accredited school or program meets critical performance standards.
Employers may consider a program’s accreditation status but tend to focus more on the actual school a candidate attended. A business school’s accreditation status alone may not directly impact your career, but the skills you gain in your program will have that impact. That’s the main reason accreditation matters.
Generally, top business schools hold AACSB accreditation, which means these schools could possibly be more selective. Those with AACSB accreditation typically place a higher emphasis on research, while ACBSP-accredited business schools emphasize teaching excellence.
AACSB and ACBSP grant accreditation to over 1,700 business schools, whereas IACBE accredits fewer than 200 business schools. If you’re researching business degrees, there’s a good chance you’re looking at AACSB- and ACBSP-accredited programs.
The sections below review the three main business school accreditors and the standards they represent in greater detail.
Association to Advance Collegiate Schools of Business
AACSB, founded in 1916, offers business and accounting accreditation. The agency only accredits business schools offering both undergraduate and graduate degrees. The AACSB accredits over 950 business schools, and many of the top-ranked business schools in the world hold AACSB accreditation.
Because of its emphasis on thought leadership, AACSB typically accredits business schools at research-focused institutions. AACSB’s standards for business accreditation include:
- Strategic Management and Innovation: AACSB reviews the school’s strategic plan, evaluating strategic initiatives, goals, and metrics for success. Business schools must also demonstrate overall financial health.
- Learner Success: Business schools must align their curricula and program management with the competencies required to succeed in business careers. In addition to evaluating teaching materials and extracurricular programs, AACSB measures teaching effectiveness and impact.
- Thought Leadership, Engagement, and Societal Impact: Does the business school make positive intellectual contributions? AACSB evaluates the school’s influence based on scholarship and societal impact.
AACSB-Accredited Business Schools
- Arizona State University W.P. Carey School of Business
- Harvard Business School
- Indiana University Kelley School of Business
- Kellogg School of Management at Northwestern University
- Stanford Graduate School of Business
- University of Chicago Booth School of Business
- University of Southern California Marshall School of Business
- University of Texas at Austin McCombs School of Business
- University of Washington Foster School of Business
- Wharton School of the University of Pennsylvania
Accreditation Council for Business Schools and Programs
ACBSP grants accreditation to 750 business schools, emphasizing teaching excellence and student outcomes. Founded in 1988, it was the first business accreditor to evaluate associate-level business programs.
ACBSP may appeal to colleges and universities that focus less on research and more on student learning and teaching. ACBSP’s accreditation standards include:
- Leadership and Strategic Planning: To earn ACBSP accreditation, business schools must demonstrate a commitment to performance excellence and continuous improvement in their leadership and planning processes.
- Student Learning Assessment: Business schools must assess student learning outcomes regularly for each accredited program. Programs should use the assessment to improve outcomes.
- Faculty and Teaching: ACBSP examines the school’s process for encouraging teaching excellence, evaluating faculty members, and improving the curriculum and program delivery.
ACBSP-Accredited Business Schools
- Colorado State University Global School of Management and Innovation
- Fisk University Department of Business Administration
- Florida A&M University School of Business and Industry
- Liberty University School of Business
- Purdue University Global
- Southern New Hampshire University Business School
International Accreditation Council for Business Education
The newest business school accreditor, IACBE, accredits under 200 business schools. Established in 1997, it positions itself as a “mission-driven and outcomes-based” accreditor and works with member institutions to improve their business education processes and practices.
IACBE’s program accreditation principles include:
- Outcome Assessment: Business schools must complete an outcome assessment that evaluates student learning and strategic planning. The assessment should contribute to continuous improvement in pedagogy, academic support services, and institutional operations that affect students.
- Curriculum and Faculty: IACBE looks at faculty qualifications, program design, and coverage of key content areas. Faculty must demonstrate “significant academic and professional preparation.” Curricula must also be relevant and current.
- Resources and Admission: IACBE evaluates financial resources, facilities, learning resources, and educational support. The accreditor also states that business schools should only admit students with a reasonable chance of succeeding in the program.
IACBE-Accredited Business Schools
- Albertus Magnus College Tagliatela School of Business and Leadership
- Azusa Pacific University School of Business and Management
- Davenport University
- Excelsior University
- Franklin University Ross College of Business
- Seton Hill University School of Business
- University of Maryland Global Campus Department of Business Administration
Frequently Asked Questions About Business School Accreditation
What is the best business school accreditation?
Of the three business school accreditors (AACSB, ACBSP, and IACBE), AACSB is the most sought-after by top-ranked business schools. The organization accredits over 950 business schools, including international institutions.
Business schools accredited by ACBSP and IACBE must also meet outcome-based standards and work toward continuous improvement.
What’s the difference between ACBSP vs. AACSB accreditation?
Both ACBSP and AACSB accredit business schools; however, they set different standards for accreditation.
As the oldest business accreditor, AACSB emphasizes research and only accredits business schools that offer undergraduate and graduate degrees. Typically, AACSB-accredited programs are at research institutions.
ACBSP, by contrast, places greater emphasis on teaching standards. ACBSP-accredited business schools are also less likely to be at research universities.
Which accreditation is best for an MBA?
The best MBA programs typically hold accreditation from AACSB or ACBSP. Normally, MBA programs with AACSB accreditation are more competitive and rank higher in terms of prestige and reputation. As a result, it can be harder to get into an AACSB-accredited MBA program.
On the other hand, ACBSP-accredited programs can offer a more affordable route to an MBA.
When researching MBA programs, consider factors like the business school’s reputation, the total cost of the degree, and career services support.
What happens if a business school loses accreditation?
If a business program loses accreditation, it likely won’t affect students. Business program accreditors can withdraw accreditation or place programs on probation. Fortunately, graduates do not need to attend an accredited business school to qualify for professional licensure or compete in the job market.
However, even if your business program isn’t programmatically accredited, you should still attend an accredited university, as only schools accredited by the Department of Education can award federal financial aid.
If your business program loses accreditation, it’s worth investigating why. For example, if the program’s curriculum or faculty fails to meet accreditation standards, it can indicate a problem for students.
