Do universities place sanctions on companies who rescind offers?

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Curious on the topic. Universities punish students for reneging but do they "punish" companies for the same?

 

Comments (23)

 
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  • Intern in IB-M&A
Aug 23, 2020 - 12:20pm

someone asked the people at my career center this recently and they said no. at the end of the day, the career center's goal is to help students get jobs. when a student rescinds, it hurts future students chances at that bank, which is why the career center hates that and might punish the student in some way. when a company rescinds offers, it sucks for the few students that might've had offers, but chances are that place will still be hiring again the next year, so it just doesn't make sense for the school to cut off relations with the company. they said if it was a regular thing then they might not let the company do OCR, but a once in a lifetime event like COVID or the '08 recession were such anomalies that the school expects the company will go back to hiring once things return to normal so it just isn't worth placing sanctions. 

 
  • Prospect in IB-M&A
Aug 23, 2020 - 12:44pm

How do universities "punish" students who renege on an offer? I understand how it's a bad look for the university and hurts future chances for other students but like what can they actually do?

 
  • Business School in IB - Gen
Aug 23, 2020 - 12:45pm

Depends on the school.  If a school has extremely desirable candidates and they hold more power then maybe.  If they're struggling to place kids then no way.

 
  • Business School in 
Aug 23, 2020 - 2:12pm

At our school, if you renege on a co-op job, you drop out of the co-op program and can only do the regular program (i.e. can only recruit in the summer on your own without school resources)

 
  • Analyst 2 in IB-M&A
Aug 23, 2020 - 5:40pm

Only schools that could have this type of leverage would be places like HYPWS and even then they probably won't. At the end of the day its a symbiotic relationship with probably a bit more leverage to the companies.

 
Aug 24, 2020 - 6:44am

Not much the schools can do really. The schools are dependent on the companies to come back and recruit, year after year, for decades. If a school blackballs a company, that hurts the school and its placement stats, but does zero to hurt the company, which will just hire from another school. I have seen companies renege, or more commonly simply fire new hires early to cut costs. The school won't say a word.  

 
Aug 24, 2020 - 3:27pm

My friend's older sister went to one of HSW for MBA, and when the company she interned for reneged on offers (this was back in 2008) the school kicked them out of OCR.  

 
Aug 26, 2020 - 12:29pm

She was lucky. A PE firm forced an exploding offer on me for a summer position and then reneged when I asked for an extension. The principal at the firm was alum of my bschool (and a relatively recent one at that) so he was 100% aware and informed of recruiting guideline.  The OCR team essentially said it happens all the time and there was nothing they could do to help. If they did, firms would just stop posting directly to students and just put on posting on LinkedIn / others. 

 
  • Prospect in IB - Ind
Aug 24, 2020 - 11:21pm

Had a company renege an offer this year out of the blue for a non-COVID issue. The company does OCR, and as such I informed career center but they couldn't / wouldn't take any direct action

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