A statement on the university's website says it's alleged the chant was made on one or more buses taking students between events during frosh orientation activities run by the UBC Commerce Undergraduate Society.
The statement says the university takes the reports "very seriously."
It says a "thorough investigation" will be conducted jointly by the Sauder School of Business and the office of the vice-president.
Any disciplinary measures will follow the university’s policy on discipline for non-academic misconduct.
The university also says it will take steps to educate students about the harm caused by such behaviour.
"This is of grave concern to all members of the UBC community," the statement said.
"Such behaviour would be completely inconsistent with the values of UBC and the Sauder School of Business and completely inconsistent with the instruction that the Commerce Undergraduate Society receives on appropriate conduct prior to FROSH."
A similar incident at Saint Mary's University in Halifax prompted the resignation of the president of the student association.
There was a national outcry after a video was posted on Instagram showing a frosh-week chant glorifying the sexual assault of underage girls.
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