The notion of pairing student-run investment funds with socially responsible business practices is a fairly new concept for b-schools: more and more schools are looking beyond simply teaching students how to make money to teaching how to create value in a socially conscious way. Students and faculty at Columbia Business School and the University of California, Berkeley’s Haas School of Business launched funds this fall directed at socially responsible investing. These funds are an extension of a flurry of new electives, specialized research institutes, student clubs, and internships focused on social and environmental issues.

This new breed of student-run funds has taken a variety of forms, from funds that invest in mainstream index funds to nonprofit arrangements aimed at helping “micro” entrepreneurs, and students can’t wait to apply what they’ve learned to the financial markets.

The Haas Socially Responsible Investment Fund, launched just this fall with a seed gift of $250,000 from Haas alumnus Charlie Michaels, has since managed to raise a total of $1.3 million for the fund, which will be managed by four MBA students and two master’s in financial engineering students. Most of the students running the fund were required to take a class in socially responsible investment techniques, offered by the school for the first time this semester. They spent the past few months developing their investment criteria and plan to evaluate firms on their social, environmental, and financial performance. By January, they expect to start investing in companies.

At Columbia, students are hoping to make a dent in global poverty by creating a nonprofit investment fund dubbed the Microlumbia Fund. The students will make two to three low-interest “micro” loans a year to small, entry-level microfinance programs or banks in developing areas. These groups will then assist would-be small business owners in their communities. The idea developed last year, when a group of first-year students took a class in social entrepreneurship. Since then, about 20 students have gotten involved with the group and have raised $10,000 for the venture. They hope to raise $100,000 and make two to three investments of approximately $25,000 each by the end of the year. The mission, says Columbia MBA student and blogger Laura Bogomolny, is to make investments that benefit those in desperate poverty around the globe.

Social investing can play a significant role in a business school curriculum; students say it’s one thing to read about it in the classroom, but quite another to see if it actually works out in practice. Something to think about when you head off to b-school.

For more on this topic, visit BusinessWeek.com

This week’s GMAT challenge question from PrepForTests is a data sufficiency question. In this type of GMAT question you need to work out which of the statements 1 and 2 are required to answer the question.

If k is not equal to 0, 1, or -1, is 1/k > 0?

1. 1/(1 – k) > 0
2. 1/(1 + k) > 0

1. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient
2. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient
3. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient
4. EACH statement ALONE is sufficient
5. Statements (1) and (2) TOGETHER are NOT sufficient

Once you have tried to answer the question review your answer.

For applicants who are fortunate enough to have received interview invitations, be sure to check out our Invitation Tips.

Of course, many applicants are spending the holiday weekend wondering if they will be receiving interview invitations from HBS and Stanford. Often applicants ask whether WHEN they hear about an interview from these schools says anything about their chances for admissions. The answer is no, but let’s go straight to the source for confirmation.

Derrick Bolton address the topic on the Stanford MBA Blog. “Please be assured,” he writes, “that your likelihood of admission bears no relationship to when you receive your interview invitation; the timing of your invitation simply depends on when we review your file – and there is no pattern to application review.” He says that the Round 1 interview invitations go out from now until mid December every business day even during the Stanford school holiday from Dec 24, 2007 to Jan 1, 2008. They try to send all interview invitations by Jan 11, though some will go out later and some applicants may be asked to join the waitlist without an interview. Finally though, he stresses, “no matter when you receive your invitation to interview, you have the same chance of admission as any other candidate.”

HBS delivers the same message on their frequently asked questions:
“Interview invitations are extended on a rolling basis throughout the course of each application round. The timing of your interview does not imply anything about the status of your application nor does it impact your candidacy. Invitations to interview may be extended up until the notification date and are a positive indicator no matter when you receive them.”

Current and former members of the armed forces possess numerous skills that admissions boards value in an MBA candidate. Real-world leadership experience, the ability to strategize and think on their feet, and being able to work well under high-pressure situations are just a few of the advantages a veteran brings to the table when applying for business school. The ability to increase earnings potential and career opportunity is leading many current, retired and reserve military personnel to pursue a graduate degree. Whether the goal is to rise in the ranks or transition into the civilian world, an MBA can provide a competitive advantage for veterans.

Business schools that participated in a Military MBA survey reported, on average, a 48% growth in enrollments of students with military backgrounds between 2006 and 2007, while two schools — the University of Virginia, Darden School of Business and Vanderbilt University’s Owen Graduate School of Management – reported the largest growth in military student enrollments.

Mba.com offers a downloadable MBA planner, Operation MBA, specifically designed for active duty, reserve and National Guard personnel ready to take this crucial step as part of their career plans. The guide includes key information such as why veterans should consider a graduate management degree, how to transfer from a military to academic setting, what types of MBA programs are available, and a timeline to help plan out the application process from start to finish.

Several schools welcome applicants with military experience into their MBA programs. In fact:

• When allowed by state and university regulations, they will waive the application fee for military persons who have been on active duty within three years of applying.
• They also have committed to making financial aid available to qualified military personnel who have transitioned from the service in the two years prior to enrolling in their program.
• They will also provide a one-year deferment if admitted military students’ plans are delayed by their service branch.

For a list of military-friendly schools, and links to participants who offer a unique perspective on how they have used their military background to maximize the business school experience, click here.