The association said it supports the view that elements of successful outcomes for schools should include "personal attributes and qualities - behaviours and attitudes, a kind of social literacy".
The CBI's First Steps report calls for an overhaul of the school system to deliver for the country as a whole - and says that raising educational attainment could add a percentage point to growth.
The report sets out measures that it says will "revive our schools and ensure that they are developed so they are best able to help the UK compete against its international counterparts".
A PSHE Association spokesman said:
"We wholeheartedly agree with the CBI that ‘exam and curriculum rigour must be part of a wider system that also addresses social and behavioural aspects of education’.
"The idea that schools should be expected ‘to create the ethos and culture that build the social skills also essential to progress in life and work, and allow them time to focus on this’ is in line with the PSHE Association’s view that personal, social, health and economic (PSHE) education should be an entitlement for all pupils.
"The CBI report says that ‘An exclusive focus on subjects for study would fail to equip young people with these, though rigour in the curriculum does help. These personal behaviours and attributes – sometimes termed character – play a critical role in determining personal effectiveness in their future lives, and should be part of our vision."
The PSHE Association’s proposal for a revised framework for PSHE education suggests that all young people should have opportunities to learn how to manage their health and relationships, careers and finances. The proposal includes a focus on learning how to manage transition, make responsible choices and be enterprising and ambitious. It highlights the need to develop employability and leadership skills, manage risk and develop flexibility and resilience.
John Cridland, CBI Director-General, said:
“Getting the next generation on the escalator to achieve their potential is one of the most exciting challenges we face.
“Businesses have traditionally focused on education at 14 plus, but it’s clear we need to tackle problems earlier, instead of applying a sticking plaster later on.
“We have some great teachers and average grades are rising, but we’ve been kidding ourselves about overall standards. By teaching to the test, too many young people’s individual needs are not being met, and they are being failed by the system.
“Government reforms are heading in the right direction, but are not sufficient on their own and must go further and faster. As well as academic rigour, we need schools to produce rounded and grounded young people who have the skills and behaviours that businesses want.”