Officially founded in 1906 as the Department of Commerce within the Faculty of Arts, the Faculty of Management originated from a two-year commerce program. The Commerce program is named the School of Commerce, and the first Bachelor of Commerce (BCom) degrees are awarded by McGill in 1915. The McGill School of Commerce was founded in 1920, independent of the Faculty of Arts. The Graduate School of Business Administration was established in 1963 and graduated its first MBA class in 1965. The Graduate School of Business Administration was later merged with the School of Commerce in 1968 to form the Faculty of Management.
The Faculty of Management is located in the Samuel Bronfman Building which was named in honour of Samuel Bronfman for his donation of the building in 1972. The joint MBA/Law program received approval in 1978 and applications begin in 1979. In the 1980s, the Faculty established the Management Science Research Centre, Dobson Centre for Entrepreneurial Studies (now named the McGill Dobson Centre for Entrepreneurship), Centre for Strategy Studies in Organizations, Centre for International Management Studies and the Centre for the Convergence of Health and Economics. The Faculty also launched the Applied Investments Program, which was the first program of its kind in Canada.
The McGill Institute of Marketing (MIM) was launched in 1992. In 1996, three new programs were established: the International Masters Program in Practicing Management (IMPM) (now named the International Masters Program for Managers), the Joint MD/MBA program, and, in conjunction with the Faculty of Engineering, the Masters in Manufacturing Management (MMM), which has since been renamed the Global Manufacturing and Supply Chain Management Program (GMSCM). In 1998, the Faculty launched the MBA Japan program, the first Canadian degree program offered in Japan.
In 2005, the Faculty of Management was renamed to the Desautels Faculty of Management in honor of the late Marcel Desautels, an executive from the credit reference industry, who made several gifts of more than $32 million total to the faculty. The Desmarais Global Finance Research Centre, made possible by a donation from the Desmarais family, was also established. In 2007, Marcel Desautels received an honorary McGill doctorate in recognition of his outstanding contributions to business education. In July 2008, he was made a Member of the Order of Canada, one of the highest civilian honours bestowed by the Canadian government.
In January 2012 the second floor of the Bronfman building reopened as the new "Business Intelligence Centre," featuring a trading room sponsored by the Desjardins Group.
In 2015, the faculty launched the world's first GROOC, a type of massive open online course with an emphasis on groupwork, titled Social Learning for Social Impact on edX.