STOP DEVALUING MY DEGREE! STAKEHOLDER-LED STIGMATIZATION TO SAVE BUSINESS SCHOOL STATUS

This paper explores organizational stigma, an important yet underexamined phenomenon in business schools, and its role in the preservation of institutional status and prestige. Through a case study of a prestigious U.S.-based business school, we examine the stigmatization process initiated by alumni stakeholders following the announcement of an alliance with a global conglomerate that operates a network of for-profit universities. Our study contributes to existing research on the critical role of stakeholder evaluations in shaping and maintaining business schools’ status, reputation, and legitimacy. By analyzing the stigmatizers’ perspective, we propose a process model for the alumni-led stigmatization. We highlight how these stakeholders, particularly in the era of social media, can disrupt strategic decision-making at business schools by triggering and enacting stigmas across multiple levels both within and outside the institution.