CHAPTER 1 DISCUSSION QUESTIONS1) How did the corporation become so powerful (history & evolution)?2) How is a corporation ...
WHAT COMES TO MIND WHEN YOU HEAR/READ THE WORD                “CORPORATION”           CORPORATION VS BUSINESS
CLIP 1: WHAT IS A CORPORATION?
DEFINITION & HISTORY•CORPORATION:-“CORPUS”: LATIN “BODY OF PEOPLE.”-A GROUP OF INDIVIDUALS WORKING TOGETHER TO SERVE A VAR...
ADVANTAGES/DISADVANTAGESADVANTAGES:1) LIMITED LIABILITY OF STOCKHOLDERS2) ABILITY TO CONTINUE INDEFINITELY    (PERPETUAL L...
THE RISE OF THE CORPORATION IN EUROPE•EARLY ON, THE CORPORATION WAS ENGULFED IN CORRUPTION & FRAUD.•JOBBERSSTOCKBROKERS WH...
CLIP 2: BIRTH & EVOLUTION
THE RISE OF THE CORPORATION IN AMERICA         GREW OUT OF THE INDUSTRIAL AGE             (LATE 1700’S, EARLY 1800’S)-INDU...
IMPORTANT INVENTIONS/CREATIONS       COTTON GIN: 1793
IMPORTANT INVENTIONS/CREATIONS       CLERMONT (1807)
IMPORTANT INVENTIONS/CREATIONSCUMBERLAND ROAD: CUMBERLAND, MD – VANDALIA, IL                 (1811-1839)
IMPORTANT INVENTIONS/CREATIONS       TELEGRAPH (1860)
IMPORTANT INVENTIONS/CREATIONSTRANSCONTINENTAL RAILROAD (1869)
PARADIGM CHANGE: AGRARIAN TO MANUFACTURING-AS INDUSTRIES & FACTORIES AROSE, PEOPLE MOVEDFROM FARM TOWNS TO CITIES.-BY 1900...
REVOLUTIONARY TRANSFORMATION•NJ & Delaware sought to attract corporations to their jurisdictions by getting ridof unpopula...
14TH AMENDMENTPASSED AT END OF CIVIL WAR TO GIVE EQUAL RIGHTS TO               AFRICAN-AMERICANS. “ NO STATE CAN DEPRIVE A...
CLIP 3: A LEGAL “PERSON”
THE CORPORATION AS A “PERSON”•The law typically views a corporation as a fictional person, alegal person, or a moral perso...
CORPORATIONS HAVE DEVELOPED WAYS TO SOFTENTHEIR IMAGE WITH THE PUBLIC OTHER THAN THROUGH               THE LEGAL SYSTEM
CORPORATE SOCIAL RESPONSIBILITY (CSR)Corporate Social Responsibility (CSR):-The deliberate inclusion of public interest in...
FOR CLASS PURPOSES:2) EMPLOYEES3) CUSTOMERS4) SOCIETY: COMMUNITY/ENVIRONMENT
CSR-AS CORPORATIONS SIZE & POWER GREW, SO DIDPEOPLE’S FEARS OF THEM.-EARLY 1900’S: AMERICANS VIEWED CORPORATIONS ASTHREATE...
CAPITALISM  BEFORE WE DISCUSS “NEW” CAPITALISM WE MUST FIRST UNDERSTAND                      REGULAR CAPITALISM-AN ECONOMI...
NEW CAPITALISM-THE TREND OF SOFTENING A CORPORATION’S IMAGEWITH PROMISES OF GOOD CORPORATE CITIZENSHIP &PRACTICES OF BETTE...
SUSTAINABLE DEVELOPMENT-ARGUES THAT CORPORATIONS SHOULD MAKEDECISIONS BASED NOT ONLY ON SHORT-TERM FINANCIALFACTORS SUCH A...
BRANDING-SIMILAR TO BRANDING ON THE RANCH.-USED TO DIFFERENTIATE YOUR COMPANY (COW) FROM ALL OTHERCOMPANIES (CATTLE).-USED...
CLIP 14: A PRIVATE CELEBRATION
BRAND DRIVERS-SLOGANS, LOGOS, SYMBOLS, MACOTS, CELEBRITYENDORSEMENTS, ETC. TO REINFORCE “HUMANQUALITIES”
CAN/SHOULD A SUCCESSFUL BRAND APPEAL TO EVERYBODY?-SHOULD A ROLEX WATCH COST $50?-WHAT WOULD HAPPEN TO SALES SHORT-TERM?-W...
“CORPORATIONS, AS BRANDS, HAVE SOULS.”             BRANDING = PERSONALITY-CORPORATION: COLD, IMPERSONAL, & SUBJECT TOMISUN...
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The corporation chapter 1

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The corporation chapter 1

  1. 1. CHAPTER 1 DISCUSSION QUESTIONS1) How did the corporation become so powerful (history & evolution)?2) How is a corporation a "person?"3) What is corporate "social responsibility?"4) What is the history of corporate social responsibility?5) What is "new capitalism" & what is its effect on corporate social responsibility?6) On page 26 the author states that corporations use "branding" to create unique& attractive personalities for themselves. What is "branding?" To answer thiseffectively, you will need to research this further than just the short blurb in thebook.7) On page 26 the author quotes Clay Timon, CEO of Landor Associates theworlds largest & oldest branding firm, as saying, "Corporations, as brands havesouls." What does he mean?8) In your opinion, what company does an effective job at creating a unique &attractive personality through branding? What is the personality that theyportray? How do they do it?
  2. 2. WHAT COMES TO MIND WHEN YOU HEAR/READ THE WORD “CORPORATION” CORPORATION VS BUSINESS
  3. 3. CLIP 1: WHAT IS A CORPORATION?
  4. 4. DEFINITION & HISTORY•CORPORATION:-“CORPUS”: LATIN “BODY OF PEOPLE.”-A GROUP OF INDIVIDUALS WORKING TOGETHER TO SERVE A VARIETY OFOBJECTIVES.-THE MAIN OBJECTIVE IS TO EARN LARGE, GROWING, SUSTAINED, LEGAL RETURNS($$$) FOR THE PEOPLE WHO OWN THE BUSINESS.•FORMS: -BUSINESS -GOVERNMENT -POLITICAL -RELIGIOUS -CHARITABLE (NON-PROFIT)
  5. 5. ADVANTAGES/DISADVANTAGESADVANTAGES:1) LIMITED LIABILITY OF STOCKHOLDERS2) ABILITY TO CONTINUE INDEFINITELY (PERPETUAL LIFETIME)DISADVANTAGES:1) COST & TIME TO ESTABLISH & MAINTAIN2) LEGAL REQUIREMENTS & REGULATORY RED TAPE
  6. 6. THE RISE OF THE CORPORATION IN EUROPE•EARLY ON, THE CORPORATION WAS ENGULFED IN CORRUPTION & FRAUD.•JOBBERSSTOCKBROKERS WHO PROWLED LONDON’S COFFEE SHOPS IN SEARCH OF INVESTORS TO SELL SHARES INBOGUS COMPANIES.•SOUTH SEA COMPANY:CORPORATION FORMED TO CARRY ON EXCLUSIVE TRADE (MONOLOPY) WITH SPANISH COLONIES OF SOUTHAMERICA. IN EXCHANGE, IT ASSUMED THE NATIONAL DEBT ENGLAND INCURRED DURING THE WAR OF SPANISHSUCCESSION.•SOUTH SEA BUBBLE:TO WIN OVER POLITICIANS, THE COMPANY GAVE STOCKS IN THEIR BUSINESS. THE POLITICIANS THEN SOLDTHEM BACK TO THE COMPANY FOR PROFIT.•BUBBLE ACT:CRIMINAL OFFENSE TO CREATE A COMPANY PRESUMING TO BE A CORPORATE BODY & TO ISSUE TRANSFERABLESTOCKS WITHOUT LEGAL AUTHORITY.•1720: ENGLISH PARLIAMENT OUTLAWED THE CORPORATION.
  7. 7. CLIP 2: BIRTH & EVOLUTION
  8. 8. THE RISE OF THE CORPORATION IN AMERICA GREW OUT OF THE INDUSTRIAL AGE (LATE 1700’S, EARLY 1800’S)-INDUSTRIALIZATION IN AMERICA INVOLVED 3 IMPORTANTDEVELOPMENTS:1) TRANSPORTATION2) ELECTRICITY3) TECHNOLOGY
  9. 9. IMPORTANT INVENTIONS/CREATIONS COTTON GIN: 1793
  10. 10. IMPORTANT INVENTIONS/CREATIONS CLERMONT (1807)
  11. 11. IMPORTANT INVENTIONS/CREATIONSCUMBERLAND ROAD: CUMBERLAND, MD – VANDALIA, IL (1811-1839)
  12. 12. IMPORTANT INVENTIONS/CREATIONS TELEGRAPH (1860)
  13. 13. IMPORTANT INVENTIONS/CREATIONSTRANSCONTINENTAL RAILROAD (1869)
  14. 14. PARADIGM CHANGE: AGRARIAN TO MANUFACTURING-AS INDUSTRIES & FACTORIES AROSE, PEOPLE MOVEDFROM FARM TOWNS TO CITIES.-BY 1900 3 AMERICAN CITIES HAD A POPULATION OVER 1MILLION: NEW YORK: 3.5 MILLION CHICAGO: 1.7 MILLION PHILADELPHIA: 1.3 MILLION
  15. 15. REVOLUTIONARY TRANSFORMATION•NJ & Delaware sought to attract corporations to their jurisdictions by getting ridof unpopular restrictions.DEREGULATION:-THE REMOVAL OR REDUCTION OF GOVERNMENT CONTROL ON HOWBUSINESS IS DONE.
  16. 16. 14TH AMENDMENTPASSED AT END OF CIVIL WAR TO GIVE EQUAL RIGHTS TO AFRICAN-AMERICANS. “ NO STATE CAN DEPRIVE A PERSON OF LIFE, LIBERTY, OR PROPERTY WITHOUT DUE PROCESS.”CORPORATIONS ARGUED THAT THEY ARE A “PERSON” & THE SUPREME COURT AGREED.
  17. 17. CLIP 3: A LEGAL “PERSON”
  18. 18. THE CORPORATION AS A “PERSON”•The law typically views a corporation as a fictional person, alegal person, or a moral person.•Under such a doctrine, a corporation enjoys many of therights and obligations of individual persons such as: -The ability to own property -The ability to sign binding contracts -The ability to pay taxes -The ability to have certain constitutional rights -The ability to participate in society•Corporations often have rights not granted to individuals: -Treaty rights
  19. 19. CORPORATIONS HAVE DEVELOPED WAYS TO SOFTENTHEIR IMAGE WITH THE PUBLIC OTHER THAN THROUGH THE LEGAL SYSTEM
  20. 20. CORPORATE SOCIAL RESPONSIBILITY (CSR)Corporate Social Responsibility (CSR):-The deliberate inclusion of public interest into corporate decision-making. -CSR honors the 3 P’s: -People, Planet, Profit-Shareholders vs StakeholdersShareholder:-An individual, group, or organization that legally owns shares ofstock in a company. *Has a financial stake in the company.Stakeholder:-A person, group, or organization that affects or can be affected byan organizations actions. *Has an interest in the company.
  21. 21. FOR CLASS PURPOSES:2) EMPLOYEES3) CUSTOMERS4) SOCIETY: COMMUNITY/ENVIRONMENT
  22. 22. CSR-AS CORPORATIONS SIZE & POWER GREW, SO DIDPEOPLE’S FEARS OF THEM.-EARLY 1900’S: AMERICANS VIEWED CORPORATIONS ASTHREATENING TO THEIR SOCIAL INSTITUTIONS &GOVERNMENTS. -“FRANKENSTEIN MONSTERS”-ENTER “NEW CAPITALISM”
  23. 23. CAPITALISM BEFORE WE DISCUSS “NEW” CAPITALISM WE MUST FIRST UNDERSTAND REGULAR CAPITALISM-AN ECONOMIC SYSTEM BASED ON FREE ENTERPRISE.1) LITTLE GOVERNMENT INTERVENTION (DEREGULATION).2) OPEN COMPETITION (FREE MARKET)
  24. 24. NEW CAPITALISM-THE TREND OF SOFTENING A CORPORATION’S IMAGEWITH PROMISES OF GOOD CORPORATE CITIZENSHIP &PRACTICES OF BETTER WAGES & WORKING CONDITIONSWITHOUT THE PUSH OF GOVERNMENTS & UNIONS.-CORPORATIONS NEED TO TAKE CARE OF THEIREMPLOYEES.-BELIEVED CAPITALISM WOULD NOT SURVIVE UNLESSEQUALITY & COOPERATION EXISTED BETWEEN WORKERS& CAPITALISTS.
  25. 25. SUSTAINABLE DEVELOPMENT-ARGUES THAT CORPORATIONS SHOULD MAKEDECISIONS BASED NOT ONLY ON SHORT-TERM FINANCIALFACTORS SUCH AS PROFITS OR DIVIDENDS, BUT ALSOBASED ON THE LONG-TERM SOCIAL & ENVIRONMENTALCONSEQUENCES OF THEIR ACTIVITIES.-CORPORATIONS NEED TO TAKE CARE OF THEENVIRONMENT.
  26. 26. BRANDING-SIMILAR TO BRANDING ON THE RANCH.-USED TO DIFFERENTIATE YOUR COMPANY (COW) FROM ALL OTHERCOMPANIES (CATTLE).-USED BY CORPORATIONS TO CREATE UNIQUE & ATTRACTIVEPERSONALITIES FOR THEMSLEVES.-CORPORATIONS’ BRAND IDENTITIES ARE PERSONIFICATIONS OFWHO THEY ARE & WHERE THEY’VE COME FROM.-ENABLES THEM TO CREATE INTELLECTUAL & EMOTIONAL BONDSWITH THE GROUPS THAT THEY DEPEND ON: -CONSUMERS & EMPLOYEES
  27. 27. CLIP 14: A PRIVATE CELEBRATION
  28. 28. BRAND DRIVERS-SLOGANS, LOGOS, SYMBOLS, MACOTS, CELEBRITYENDORSEMENTS, ETC. TO REINFORCE “HUMANQUALITIES”
  29. 29. CAN/SHOULD A SUCCESSFUL BRAND APPEAL TO EVERYBODY?-SHOULD A ROLEX WATCH COST $50?-WHAT WOULD HAPPEN TO SALES SHORT-TERM?-WHAT WOULD HAPPEN TO THE BRAND LONG-TERM?-NO. CREATE THE PERCEPTION THAT THERE IS NO OTHERCOMPANY/PRODUCT ON THE MARKET LIKE YOURS.
  30. 30. “CORPORATIONS, AS BRANDS, HAVE SOULS.” BRANDING = PERSONALITY-CORPORATION: COLD, IMPERSONAL, & SUBJECT TOMISUNDERSTANDING & DISTRUST.-FAMILY: PERSONAL, HUMAN, FRIENDLY. “FRIEND & NEIGHBIOR” “FAMILY”

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