20. The Commercialization of Higher Education

Canadian universities are now facing the dilemma of whether to allow commercial interests to enter the world of higher education.

It's not a question of if, but of how much.

Given chronic underfunding from provincial governments, universities have little choice but to search for money elsewhere, and the private sector is eager to establish a presence on campus. Large student populations, captive audiences and the allure of Canada's best research talents are also drawing corporations to universities.

It's a trend that's sparking alarm, opportunity and debate. Here at the University of Western Ontario, the student newspaper recently called it "an issue of ideology. ... As a student body it is vital to ask where the loyalty resides—in the sanctity of the institution or the dangerous lure of the almighty buck?"

"The problem with commercialization," acknowledges Western's Vice President (Administration) Peter Mercer, "is that once you cross the line, it's all a matter of degree."

The flash point for much of the debate about the commercialization of campuses is the issue of corporate advertising. On some American campuses, it seems as though advertisements are posted on every available surface. Canada is not there yet, but the line has been crossed. Several universities, for example, now allow advertisements to be posted in campus washrooms, where students and professors can ponder the merits of Brand X blue jeans and Brand Y soda pop while taking a break from pondering philosophy or physics.

"It's symbolic, visually, that (lack of government) funding is an issue," says Aniko Varpalotai, President of the UWO Faculty Association. "It symbolizes that universities are in extreme difficulty financially and it cheapens the academic environment."

This concern has led students and the University to explore other ways to bring corporate money onto campus.

By far the most successful arrangement on Canadian campuses is the "single source" deal in which the exclusive right to market a product on campus is sold to a specific company. Companies are eager to make these deals in part because a student's university years are considered the prime time to establish brand loyalties that can last a lifetime.

The obvious concern for Western administrators is to ensure single source deals don't somehow impinge on academics. "Our relationship with anyone can't compromise the fundamental values of the University," says Mercer.

But while exclusive marketing deals are a highly visible arrangement, there are other, less conspicuous ways for corporations and universities to do business, particularly through corporate sponsorships and research partnerships.

"We have very specific guidelines for our sponsorships," says Pam Waeland, Manager of Community Relations at 3M Canada, which has been actively involved in providing funds to universities, particularly Western, by sponsoring specific programs.

When 3M is going to sponsor an institution, one of the criteria it examines is to see if there is a relationship to its corporate mission. "We are a science-and-technology-based company, so having people properly trained and educated is important to us," she says. "It's good for the university, the country and for us."

Perhaps the least obvious business-university arrangement are those involving research, such as contracting with a company to work on a specific problem or subject. Such research tends to have a specific, practical purpose, unlike traditional "basic" research which is intended to enlarge knowledge and can lead almost anywhere.

"As traditional sources of research funding have dried up, we've started looking for new ways (to obtain funding)," says Bill Bridger, Vice President (Research). "The University wants to encourage contract research as long as it remains a mixed component of our overall research effort." Bridger says the total amount of contract work done by Western researchers shouldn't exceed 20 per cent of the research done at UWO.

However, some academics fear these kinds of arrangements could limit academic freedom.

Companies usually get involved in two kinds of research, short-term contracts to solve specific research problems and longer-term research grants. The latter deals support ongoing research and usually don't transfer intellectual property. "The hallmark of a good contract is the freedom to publish," Bridger says.

Freedom—intellectual freedom—is at the heart of worries about the commercialization of our campuses.

"I can see why university administrations need to search the possibilities for funding," says Varpalotai, "but we have to be cautious and not get seduced by big bucks. Funding can be addictive and it's possible to lose sight of what strings are attached."

As for the student newspaper, its editorial on the issue concluded: "The most important thing to look at is whether the reduction in the options students have is worth the potential benefits through these corporate deals. ... We must settle with the lesser of two evils. The University should proceed with caution, examining each contract—and making sure the fine print doesn't contain something it didn't bargain for."

And so, at least for now, a cautious Western carefully haggles.