What Is MBA Accreditation?

Accreditation is an independent evaluation process that recognizes institutions and programs for meeting rigorous academic standards. Institutions of higher learning voluntarily pursue accreditation to show off their quality and attract future students.

But accreditation also serves the public interest, ensuring that students receive a quality education, leading them to the highest-paying MBA jobs. With almost 6,000 colleges and universities in the United States as of 2021, accreditation also helps students and employers determine the value of a particular degree.

Accrediting agencies have developed stringent standards that postsecondary institutions must meet to earn accreditation. While accrediting agencies operate independently, the government regulates the process. In 1965, Congress passed the Higher Education Act, which authorizes the U.S. Department of Education (ED) to oversee accrediting agencies.

Students wishing to apply to an unaccredited institution should note that accredited schools will likely not accept transfer credits from unaccredited schools, and financial aid packages might depend on attendance at an accredited school.

Why Is MBA Accreditation Important?

Types of Accreditation

Accreditation is one of the best and easiest ways for students and employers to evaluate a school's educational quality. Accrediting agencies provide lists of approved institutions.

Each independent accrediting agency develops its own criteria. These standards may include an institution's educational quality, financial stability, and ethical principles. Accreditors often look at student learning outcomes: retention, assessment of certain skills, graduate placement records, and student satisfaction.

National Accreditation

The ED regulates national accreditation. Today, national accreditation agencies often focus on evaluating career, vocational, and trade schools.

In most cases, national accreditation is not as prestigious as institutional accreditation. Credits earned at a nationally accredited institution may not transfer to an institutionally accredited one, and degrees from nationally accredited institutions may not meet the requirements for certain professions that require licensing.

The ED recognizes several national accrediting agencies, including the Distance Education & Training Council (DETC), the Accrediting Council for Independent Colleges & Schools (ACICS), and the Accrediting Commission of Career Schools and Colleges (ACCSC).

Institutional Accreditation

Prior to 2019, there were six different geographical accreditation regions in the United States. The Southern Association of Colleges and Schools Commission on Colleges, for example, once acted as a regional accrediting agency for the southern states, while the Higher Learning Commission once covered central states from Arizona to West Virginia.

In 2019, the ED dissolved regional accreditation by allowing the accreditors to compete in each other's territories. Now, instead of regional accreditors, there are institutional accreditors. Institutional accreditors evaluate the school as a whole. Schools' program-level fitness and rigor may receive additional recognition from programmatic accrediting agencies. These agencies are private nonprofits regulated by federal law.

Institutionally accredited schools meet the most rigorous standards of academic excellence. Credits and degrees earned at institutionally accredited schools are more likely to transfer, and to qualify for corporate tuition reimbursement programs.

Some accredited online MBA programs, for example, will admit only students who hold a bachelor's degree from an institutionally accredited school. The top colleges and universities hold institutional accreditation from one of these:

• MSA: Middle States Association of Colleges and Schools
• NEASC: New England Association of Schools and Colleges
• NCA: North Central Association of Colleges and Schools
• NAC: Northwest Accreditation Commission
• SACS: Southern Association of Colleges and Schools
• WASC: Western Association of Schools and Colleges

Specialized and Programmatic Accreditation

Specialized and programmatic accreditation evaluates particular schools or departments within a broader institution of higher learning. For example, a university's business school may hold programmatic accreditation in addition to the institutional accreditation the university holds.

To receive specialized accreditation, the agency evaluates a program's curriculum, the faculty's qualifications, student outcomes, and several other factors. Because programmatic accrediting agencies specialize in evaluating certain departments, their standards are often specific to that field or discipline. The most prestigious business schools and MBA programs hold programmatic accreditation.

There are three top accrediting agencies for MBA programs: the AACSB, the Accreditation Council for Business Schools and Programs (ACBSP), and the International Accreditation Council for Business Education (IACBE).

Business School and MBA Accreditation

Several agencies focus exclusively on business schools and MBA programs, and students considering an online MBA should always check the program's accreditation.

What is the best accreditation for an MBA? It depends, in part, on your goal. The ACSBP, for example, accredits MBA programs with a research focus, which may provide an advantage for graduates pursuing research-based careers. The AACSB is the most selective of the top three business accrediting agencies, and a degree from an AACSB-accredited program is considered highly prestigious. The IACBE focuses on smaller institutions, evaluating their success at carrying out program missions.

All three MBA accrediting institutions have slightly different methods, but their purpose is the same. Programs that hold accreditation from the AACSB, the ACSBP, or the IACBE are guaranteed to meet high academic standards.

Association to Advance Collegiate Schools of Business (AACSB)

The AACSB is the oldest and most prestigious of the three MBA accrediting agencies.

The AACSB dates back to 1916, when a group of top colleges and universities, including Harvard University, the University of Pennsylvania, Northwestern University, and the University of Chicago, founded the Association of Collegiate Schools of Business.

These institutions, which still run the top MBA programs in the nation today, created the AACSB to promote excellence in business education.

The AACSB is the gold standard of business accreditation. The organization accredits fewer than 5% of eligible MBA programs, marking out the most elite programs conferring MBA degrees.

Schools seeking AACSB accreditation must undergo a lengthy evaluation process. Upon reviewing a school's application, AACSB staff members create a standards alignment plan and assign a peer review team to conduct on-site reviews and assessments. The entire process can take several years, and the AACSB reviews accredited programs every five years. MBA programs must also submit regular self-evaluation reports to demonstrate continued adherence to AACSB criteria.

AACSB-accredited online MBA programs meet well-recognized standards. Degrees earned through AACSB online MBA programs also confer reputation value, and some elite employers will recruit graduates only from AACSB business schools.

Accreditation Council for Business Schools and Programs (ACBSP)

Founded in 1988, the ACBSP is a relatively new accrediting agency. The ACBSP grants accreditation to institutions that demonstrate their teaching excellence, show strong student learning outcomes, and follow models for continuous improvement.

The ACBSP follows a student-centered teaching and learning approach to ensure that students gain the appropriate skills from their chosen degree program. ACBSP-accredited MBA programs measure and certify the quality of student learning, as well as the outcome for program graduates.

In order to earn ACBSP accreditation, schools must apply and complete a detailed questionnaire. An ACBSP mentor is assigned to analyze the program and authorize a self-study report. The ACBSP then conducts an on-site visit before announcing its decision.

In addition to its focus on student learning outcomes, the ACSBP prioritizes programs that emphasize research. Students who attend an ACBSP-accredited MBA program benefit from the institution's commitment to quality, and the ACBSP reports that graduates from accredited business schools are better prepared to take on a competitive job market.

International Accreditation Council for Business Education (IACBE)

The IACBE, the newest business accrediting agency, was established in 1997 and gained recognition from the Council for Higher Education Accreditation (CHEA) in 2011. The IACBE evaluates programs according to the philosophy that excellence in education can be measured by comparing a program's mission to its educational outcomes. This agency tends to focus on smaller, private institutions.

To earn IACBE accreditation, programs undergo an independent, external evaluation process designed to measure effectiveness. The IACBE reviews a program's teaching and learning methods as well as its results.

As with other accrediting agencies, programs applying for accreditation must prepare a self-study demonstrating compliance with IACBE principles and submit to an on-site visit conducted by independent peer reviewers.

The IACBE Board of Commissioners then determines if the program has earned accreditation. Graduates with IACBE-accredited online MBA degrees benefit from the IACBE's guarantee that the program meets high standards and follows best practices in business education.

While researching online MBA programs, you can find out if a school is IACBE accredited by exploring the organization's database. A comprehensive list of schools is available to IACBE members upon request.

6 Levels of the Accreditation Process

Earning accreditation takes around three years from when the school applies. It is possible an employer might find a candidate's school just recently earned accreditation or is still in the process of earning it.

Once an institution earns accreditation, it must undergo a regular periodic review process in order to maintain its accredited status.

The Accreditation Process

Accreditation Level	Process
Level 1: Eligibility Establishment	Institutions prepare for the self-study phase (Level 2) by identifying the agency from which they will seek accreditation. School officials then perform a basic pre-screening evaluation of the institution or a specific program to determine general eligibility. With eligibility established, the accrediting agency agrees to review the institution or program.
Level 2: Self-Study	School officials then perform a thorough self-assessment, evaluating the institution's performance against that agency's published standards. For programmatic endorsements like an accredited MBA, departmental administrators conduct an extensive self-study on the program in question.
Level 3: Site Visit	The accrediting agency sends a review team to the institution for an official visit. These teams typically include individuals with accreditation knowledge and programmatic experience, if applicable. During the site visit, accrediting agency representatives perform an investigation based on the self-study to determine whether the school or program meets its standards.
Level 4: Team Report	The team that conducted the site visit creates a written report about their observations, including strengths, weaknesses, and recommendations. Before presenting to the accreditation agency, the team shares a draft with the school.
Level 5: Final Decision	The accrediting organization reviews the site visit findings, self-study report, and any extra data before deciding whether to grant the accreditation request. The specifics of the review process vary among accrediting agencies. If successful, the school or program becomes accredited; if denied accreditation, the school or program can appeal.
Level 6: Monitoring	Accreditation involves a recertification process, in which the school or program must display a continued commitment to high standards to retain its accreditation standing. Recertification cycles vary among agencies but range from a few years to a decade in length. Accrediting organizations may require annual updates, financial statements, interim reviews, and substantive change reports between recertification reviews.

Who Monitors Accrediting Agencies?

ED and CHEA monitor accrediting agencies.

ED oversees education at the federal level, including private accreditation-granting educational associations. ED approves accrediting agencies and maintains a database of accredited schools.

CHEA is made up of representatives from 3,000 colleges and universities, including a board of college and university presidents. CHEA works closely with the federal government to maintain accreditation standards and reports on accreditation to ED and Congress.

ED and CHEA both evaluate accrediting organizations, including MBA accrediting agencies, to ensure they properly carry out the accreditation process.

This includes validating accrediting agencies, monitoring their processes, and promoting high academic and ethical standards. Together, ED and CHEA use oversight and advocacy to ensure that U.S. colleges and universities meet standards of excellence. ED and CHEA also maintain a list of all accredited business schools.

Insights From a College Advisor

Why is accreditation important when looking at a graduate school?

Accreditation is important when looking at graduate school because it helps to evaluate a school or program's credibility and quality of education. When schools or programs become accredited it means they have taken the voluntary step to ensure their institution meets high-caliber standards.

Accreditation is also important when it comes to students' access to financial aid, and the ease with which they are able to transfer to another institution.

A student cannot receive federal financial aid if they are not enrolled at an accredited institution. Furthermore, if a student decides to transfer to another school, credits will likely not transfer if they are coming from a nonaccredited institution.

Why is program accreditation important for students when deciding on which MBA program to choose?

When students are researching which MBA programs they might want to pursue, they will first want to ensure the school or university offering the MBA programs is accredited. After that, they will want to research the school's MBA program to confirm it is accredited as well.

Program accreditation is important because it indicates that the student will receive a high-quality education that will ideally set them up for successful career prospects in the future. Accreditation can also be important when it comes to the job search process after graduation because employers will often look at the reputation of MBA programs by looking at their accreditation status.

“When students are researching which MBA programs they might want to pursue, they will first want to ensure the school or university offering the MBA programs is accredited. After that, they will want to research the school's MBA program to confirm it is accredited as well.”

How can students find out if their MBA program or school is accredited?

If a school or program is accredited, they will have the accreditation information posted on their institution and/or program's website. Accreditation agencies will also have a database of all their accredited schools or programs listed on the agency's websites.

There are many MBA accrediting organizations, but arguably the most well-known, highest-regarded agency is AACSB.

What should a student consider if they choose a program or school that is not accredited?

If a program or school is not accredited, students [should] spend time reflecting on their academic and career goals to figure out if pursuing a non-accredited program is a viable option for them. Attending a non-accredited school may add barriers to a student's academic journey (i.e., not being able to access financial aid) and may limit opportunities for a student (i.e., limited job prospects). If they decide to transfer to another institution, their coursework may not transfer with them if it is coming from a non-accredited school.

Is there any other advice you have for students who want to understand what accreditation means?

A great starting point … is to first identify if their schools or programs are accredited and if so, by what agencies. And if they are accredited, the institution or program's website typically provides further information about what that status means.

Another great resource to learn more about accreditation is to visit accrediting agencies' websites. When it comes to programmatic accreditation, students might also consider speaking with the program advisor or a faculty member, as these folks likely also know a great deal about their program's accreditation.

Stephanie DeBord

Stephanie DeBord has spent years advising students in various capacities. She currently helps undeclared/exploratory students navigate the college experience, explore program options, and map degree plans. Her background and expertise include academic advising, the high school-to-college transition, student affairs, and higher education.

Stephanie has a bachelor's degree in sport management and a master's degree in higher education and student affairs.

Stephanie is a paid member of the Red Ventures Education Integrity Network.

Common Questions About MBA Accreditation

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Does MBA accreditation matter?

Yes, MBA accreditation matters. It shows that an MBA program meets a high standard of quality education, includes a rigorous curriculum, and employs top-notch faculty. Accreditation can also help enrollees secure financial aid and employer tuition reimbursement.

Which accreditation is best for an MBA?

Besides institutional accreditation, look for programs with AACSB, ACBSP, or IACBE accreditation. While AACSB remains the gold standard in MBA accreditation, both ACBSP and IACBE carefully evaluate programs against high standards.

Is AACSB better than ACBSP?

It depends on what you want in an MBA program. AACSB offers the most prestigious accreditation and reflects strict adherence to curriculum standards. ACBSP accredits student-centered programs with verified outcomes and a research focus.

How important is AACSB accreditation for an MBA?

Some employers exclusively hire graduates from AACSB-accredited programs due to their prestige, rigor, and selectivity. However, ACBSP and IACBE accreditation also prove program excellence -- the in-depth evaluation processes just focus on slightly different areas.

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Page last reviewed Aug. 8, 2024.