AACSB vs. ACBSP Accreditation, Which is Better?

In researching online business / MBA programs, it seems as though there are two primary accreditation organizations specifically for business degrees - The Association to Advance Collegiate Schools of Business (AACSB) and The Association of Collegiate Business Schools and Programs (ACBSP).  From my research so far, it seems as though the more recognized ivy league / bricks and morter schools are members of the former and many of the lesser known and online schools are members of the later.  Many online schools are not accredited by either.

What exactly is the difference between the two and should I care?  Will an MBA from a ACBSP accredited university stand up sufficiently on my resume?  Should I be concerned with schools that are not accredited by either?

Dear Josh,

Let's hope that a business professor and some hiring officers answer your question. Here's an accreditor's stance. AACSB is the gold standard. AACSB puts business programs through a rigorous set of requirements. ACBSP is an easier group for a university to join, though it does indicate a good level of quality in courses, internships, library resources, faculty credentials, and other factors important for any university.

If I were young and looking for a business degree that would impress hiring officers, I would look not only for one accredited by AACSB, I would also turn to standard guides to graduate programs to see which had the most prestige. In this economy, I would want every advantage I could find for the day I entered the job market. I would certainly not assume that any MBA from any college would automatically improve my chances in the employment market.

If I had a good job and were looking for a specific group of skills to improve my performance, I would be less picky about the program I chose. Of course, if I had many years of experience and seniority in my position, I could also gain admission to some of the interesting competitive distance learning or cohort-based business programs, such as the joint degree offered by Berkeley and Columbia at many sites around the nation.

If I knew that a particular regional college had a good regional reputation, I might take an MBA from a school with less reputation or visibility. But I would do some serious calling around before I signed up and put down a deposit.

There are job candidates who think that there is a magic resume format that will get them a job. These are the people willing to pay a resume writer hundreds of dollars for a resume full of gimmicks. There are prospective students who think that any credential is going to provide them with the boost they need to get a job or an advancement. I don't believe in magic or potions. I don't believe in spending tens of thousands of dollars on an education without doing at least as much due diligence as I would before buying a car.

Thanks for the great answer!  Very nice perspective on the subject.  I'm curious, is there any weight to the argument that the ACBSP folks typically make about AACSB accreditation being about schools that are big on research, where as they are focused on on actually teaching?   That seems to be the argument that ACBSP and schools such as the University of Pheonix that are accredited by them make.

Good question, Josh. Although I have been an administrator at a university that has an AACSB-accredited business school, I will not claim that my advice is the last word on this subject. Based on what I do know from accreditation work, I'll offer the following perspective.

I wouldn't want to say that any university doesn't care about teaching, or that schools with one kind of accreditation care more about teaching while others are focused more on research. Most of the faculty I know care deeply about their teaching, no matter where they teach, and I have taught myself at both large state universities and at a small private college. I've also visited lots of colleges on accreditation visits and other consultations, and I don't see any such difference.

Is research so bad? The stereotype is that faculty members who do research don't have any time for teaching. There are only 24 hours in a day, so obviously a faculty member who is active in research and consulting can't spend as much time in the office. On the other hand, faculty members who are out working in the community of researchers and practitioners have a lot of up to date knowledge and excitement to bring to the classroom.

AACSB asks for a lot more than evidence of research. In fact, as I watched my own university's business school go through the process of applying for AACSB accreditation, the toughest hurdles tended to be in areas that were all about teaching, such as evidence of quality control, outcomes assessment, design of classes, coordination of course content. Sure, there were high standards for faculty degrees and research, too, but that was not the whole focus of the accreditation.

Can a student get a good business education at a regionally accredited school that has neither of these specialized accreditations? Sure. Does either one of the accreditations confer some added value? Probably, because the school will have been pushed to improve its programs and resources.

Hi Josh, my experience with accreditation at that level is that it is the school and reputation of the MBA program that is most at issue and not the accrediting body. For most people the accreditation of an MBA program is not going to come up nearly as often as the reputation of the program. For example, a school like Brigham Young University has a well established regional accreditation. There is no question about whether or not an undergraduate degree is valid nor is there any question if a person's MBA is earned from BYU. What is at issue in this case is the comparison that takes place between an MBA from Harvard or an MBA from BYU because reputation is what matters most.

Accrediting bodies at that level are going to be fairly similar and the clout associated with the body usually comes from the university rather than the accrediting group. This is backwards from the way we often look at undergraduate programs. A school that has an undergraduate program without a specific type of accreditation is considered significantly less marketable.

For what it's worth the bottom line on the MBA issue is not so much which body is better as it is which universities the accrediting bodies are associated with as you pointed out in your note.

It depends on what you are trying to accomplish by getting your MBA. I got mine from Michigan State University (Broad) ranked in top 30 and #2 in Supply chain/logostics. If you are looking for recruitment from firms visiting campus, you should try to go to a top 30 program that is full time. Another advantage of full time is that you are assigned to a study group for the two years you are on the program and you get to learn a lot from others strengths and previous experience from different business functions -- key to understanding business. Another perk may be that during the summer between your year one and year two, your entire class may attend the Global Management course in a place like Japan and Singapore or Europe, providing you a very close look at international business and its impact on the economy, your country, and your company.

If your expectation is to learn business, but don't have the money or time to spend in school for two years without a paycheck; part-time or online programs can do very nicely. For one part, you keep collecting your pay check, for another, your employer is probably reimbursing your studies, and lastly, you may be using your newly acquired skills in your current job to make an impact on the organization and earned that promotion, or get a headhunter to recruit you. US News & World Report and BusinessWeek magazines publish ratings of MBA programs each year. One area they look at is the salaries before and after the program. If the potential salaries of a particular school won't improve your earnings, why go in debt, forego a pay check and potential annual increases over two years? Two extra years at work can also result in a promotion, especially if you are applying what you learn on a part-time or online program.

If gaining new skills is your expectation, then there should be very little difference between accreditation bodies. For instance, take the University of Dallas online MBA. Do you think that employers will ask you to provide the accreditation body for UoD? University of Dallas has a strong educational reputation and the school's reputaion will be more important than the accreditation body.

So, what is the importance of accreditation? ACBSP follows the educational quality processes under the Malcom Baldrige Award for Quality. AACSB does the same but adds more importance to academia and reseach. The point of the accreditation is that quality standards are most likely followed in order to retain accreditation. AACSB accreditation is not likely possible for smaller schools like the University of Dallas because they are not large and will not be conducting research on business topics. I have talked to many MBA grads from top programs who did not feel they got all they should have gotten from their programs. In many cases, teaching assistants delivered classes while the tenured professor was doing research (e.g., publish or perish). I feel that the pressure academia has put on business education produces a lot of professors that have no real business experience except what they have read in books. On the other side, I have seen retired business executives teaching; they really bring a lot of experience to the class. Would you rather be taught by Lee Iacocca, former CEO at Chrysler, or by some tenure professor who never ran a business? The sad thing is that Iacocca would never be made a tenured professor because he lacked tenure in academia and didn't have a doctorate degree. Folks like Iacoccoa are more likely to teach at ACBSP schools than AACSB.

Bottomline, the difference between the two bodies comes down to the size of the institution and its research scope. By the way, we need both; what should be important to you is what you want to accomplish and how to best accomplish it. One thing that impresses me is that ACBSP is becoming the more innovative body on how to deliver education and that follows the same pattern of business as e-commerce "killer apps" disrupt brick and mortar organizations and creating acceletation in the delivery of goods and services.

Good luck!

The University of Dallas has applied for, and is in the process of obtaining, AACSB accreditation. They applied back in 2006, but the whole process takes between 3 and 7 years. I would imagine that current University of Dallas standards are well above AACSB’s minimum requirements if they are currently being considered.

Thanks Thomas.

Can you validate as to why AACSB is the gold standard?

Thank you for this input. Although a year later, I found this enlightening. Faced with "early retirement" (aka you're over 50, time to move on), although I worked all over the world, developing and leading engineering and consulting teams globally as a Director (at Lucent, Avaya and Cisco) these past 20 years, my lack of Undergrad and Grad degrees has me at a stalemate. Taking a lesser individual contributor role means less income, but also means new opportunities (avoidance of 24x7 on demand, more flexibility to pursue my education). So now I am faced with a decision on schools. Online universities fit my life/work styles better, but I am concerned over related degrees being recognized. I took courses at University of Phoenix and have some 69 credit hours between UoP, Work Experienced Credits applied to electives, and some earlier (1970's) community college work. I hope to achieve my Undergrad then Grad degrees over the next 4-5 years, so that in my 60's I can pursue my dream of Adjunct Prof teaching. My experiences globally, plus my graduate degree, would hopefully position me as a strong candidate for such a role in my remaining productive years. So now the return to the original focus of this reply: given all the above, is it safe to pursue remainder of education via an online school like American Intercontinental University (which is accredited by ACBSP) and expect most colleges or universities to honor that credential (given my years of experience)? Or should I instead take more years and focus on a more conservative university program in classrooms (this would take far more years...I know many leading universities now offer online courses such as Penn State, SMU, etc.)?

Hi ktkane2011.

If I were in your situation and knowing what I now know, I would pursue an undergraduate degree from a brick and mortar regionally accredited university that also offers and online program. If you choose to pursue an MBA I would go with a regionally accredited university that has a "conservative university program in classrooms" that also offers an online MBA program. I completed an MBA program through and institution that offered both that established in my area.

After having completed an MBA program while continuing to work, I would take some of the cash I would use to pursue a graduate degree and buy investment properties, while home prices are low. In my opinion this will offer you increased income and future cash flow that you will most likely not see working for a company. I have noticed that the individuals who receive opportunities to take on additional responsibility are politically connected or become "favorites" of someone who has political connections. In most cases, you will probably have to leave the current organization you work for to get the additional income with a higher individual contributor role.

This is just my opionion and thanks for reading.