Beagles
The idea that a corporation could pay for an MBA student's education only to have the student use the University to find a new job at the moment of graduation is a business and ethical nightmare. Part-time programs thrive in large part because corporations encourage (financially and otherwise) their employees to pursue MBAs while remaining employed. If companies start to pull their support, the part-time MBA programs will suffer.
I'm sure the controversy is one reason why they make accepted Langone applicants acknowledge that career services will be provided by the Center for Working Professionals when sending in their enrollment deposits.
Valid points can be made on both sides of the argument. For example, most companies require repayment of any tuition reimbursement provided by the company within 12 months of an employee's resignation. So, they do foresee instances when an employee may leave the firm after earning his MBA. Also, many firms treat tuition reimbursement as part of professional development/regular benefit entitlement and do not attach any strings to it. Keep in mind that there are very few companies that provide 100% tuition reimbursement. Usually, the amounts are $10K per year or less, leaving an employee with the need to self-fund remaining portion of the tuition.
Therefore, I wouldn't say that companies encourage employees to pursue advanced degrees. I would say, they make it possible by providing partial assistance.