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RICK CARUSO USC GRAD CEREMONY AXE IS A GOOD CALL!!!

Rick Caruso's calling USC's decision to nix its graduation ceremony amid a flood of pro-Palestine protests a masterclass in leadership -- something other universities are still scrambling to learn ... so he says.

On "TMZ Live" Friday, Rick -- a member of USC's Board of Trustees -- affirmed students' right to free speech ... but emphasized when expression veers into hate speech and bullying, university administrations must prioritize campus safety above all else.

RC doesn't beat around the bush ... telling us leaders need to show backbone and courage to make tough decisions, even if it means they won't be popular with everyone.

From his vantage point, RC observes a significant failure among many Ivy League schools in maintaining safe and hate speech-free campuses during the recent protests.

But when it comes to USC Prez Carol Folt, Rick has nothing but praise, applauding her stellar job of navigating through choppy waters with finesse.

USC's move to axe the graduation ceremony came Thursday, following backlash sparked by Asna Tabassum's valedictory address cancellation. Tabassum had faced criticism for her outspoken pro-Palestine stance.

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