CHAPTER 1 DISCUSSION QUESTIONS 1) 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) How/Why do corporations use New Capitalism & corporate social responsibility to soften their image? 7) On page 26 the author states that corporations use "branding" to create unique & attractive personalities for themselves. What is "branding?" To answer this effectively, you will need to research this further than just the short blurb in the book. 8) On page 26 the author quotes Clay Timon, CEO of Landor Associates the world's largest & oldest branding firm, as saying, "Corporations, as brands have souls." What does he mean? 9) In your opinion, what company does an effective job at creating a unique & attractive personality through branding? What is the personality that they portray? How do they do it?
DISCUSSION: -WHAT IS BLACK WHEN IT IS CLEAN & WHITE WHEN IT IS DIRTY? -BOX OFFICE, 10/23/01, COMPUTER VOICES TODAY: -THE CORPORATION CHAPTER 1 DISCUSSION QUESTIONS DUE. -BEGIN DISCUSSING THE CORPORATION CHAPTER 1. HOMEWORK: -CURRENT EVENT. -NO NEW DISCUSSION QUESTIONS.
WHAT COMES TO MIND WHEN YOU HEAR/READ THE WORD “CORPORATION” CORPORATION VS BUSINESS
THE RISE OF THE CORPORATION IN AMERICA GREW OUT OF THE INDUSTRIAL AGE (LATE 1700’S, EARLY 1800’S) -INDUSTRIALIZATION IN AMERICA INVOLVED 3 IMPORTANT DEVELOPMENTS: 1) TRANSPORTATION 2) ELECTRICITY 3) TECHNOLOGY
IMPORTANT INVENTIONS/CREATIONS COTTON GIN: 1793
IMPORTANT INVENTIONS/CREATIONS CLERMONT (1807)
IMPORTANT INVENTIONS/CREATIONS CUMBERLAND ROAD: CUMBERLAND, MD – VANDALIA, IL (1811-1839)
IMPORTANT INVENTIONS/CREATIONS TELEGRAPH (1860)
IMPORTANT INVENTIONS/CREATIONS TRANSCONTINENTAL RAILROAD (1869)
PARADIGM CHANGE: AGRARIAN TO MANUFACTURING -AS INDUSTRIES & FACTORIES AROSE, PEOPLE MOVED FROM FARM TOWNS TO CITIES. -BY 1900 3 AMERICAN CITIES HAD A POPULATION OVER 1 MILLION: NEW YORK: 3.5 MILLION CHICAGO: 1.7 MILLION PHILADELPHIA: 1.3 MILLION
NJ & Delaware sought to attract corporations to their jurisdictions by getting rid of unpopular restrictions.
-THE REMOVAL OR REDUCTION OF GOVERNMENT CONTROL ON HOW BUSINESS IS DONE.
14 TH AMENDMENT PASSED 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.
DISCUSSION: -HOW DO YOU FIX A BROKEN PUMPKIN? -NATASHA P, AIRLINE FEES, FACEBOOK USERS TODAY: -THE CORPORATION CHAPTER 2 DISCUSSION QUESTION DUE. -FINISH DISCUSSING CORPORATION CHAPTER 1. -BEGIN DISCUSSING CORPORATION CHAPTER 2. HOMEWORK: -MICHELLE CURRENT EVENT. -READ THE CORPORATION CHAPTER 3 & ANSWER THE DISCUSSION QUESTIONS.
The law typically views a corporation as a fictional person, a legal person, or a moral person.
Under such a doctrine, a corporation enjoys many of the rights 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:
CORPORATIONS HAVE DEVELOPED WAYS TO SOFTEN THEIR IMAGE WITH THE PUBLIC OTHER THAN THROUGH THE LEGAL SYSTEM
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 Stakeholders Shareholder: -An individual, group, or organization that legally owns shares of stock in a company. *Has a financial stake in the company. Stakeholder: -A person, group, or organization that affects or can be affected by an organization's actions. *Has an interest in the company.
CSR -AS CORPORATIONS SIZE & POWER GREW, SO DID PEOPLE’S FEARS OF THEM. -EARLY 1900’S: AMERICANS VIEWED CORPORATIONS AS THREATENING TO THEIR SOCIAL INSTITUTIONS & GOVERNMENTS. -“FRANKENSTEIN MONSTERS” -ENTER “NEW CAPITALISM”
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)
NEW CAPITALISM -THE TREND OF SOFTENING A CORPORATION’S IMAGE WITH PROMISES OF GOOD CORPORATE CITIZENSHIP & PRACTICES OF BETTER WAGES & WORKING CONDITIONS WITHOUT THE PUSH OF GOVERNMENTS & UNIONS. -CORPORATIONS NEED TO TAKE CARE OF THEIR EMPLOYEES. -BELIEVED CAPITALISM WOULD NOT SURVIVE UNLESS EQUALITY & COOPERATION EXISTED BETWEEN WORKERS & CAPITALISTS.
SUSTAINABLE DEVELOPMENT -ARGUES THAT CORPORATIONS SHOULD MAKE DECISIONS BASED NOT ONLY ON SHORT-TERM FINANCIAL FACTORS SUCH AS PROFITS OR DIVIDENDS, BUT ALSO BASED ON THE LONG-TERM SOCIAL & ENVIRONMENTAL CONSEQUENCES OF THEIR ACTIVITIES. -CORPORATIONS NEED TO TAKE CARE OF THE ENVIRONMENT.
BRANDING -SIMILAR TO BRANDING ON THE RANCH. -USED TO DIFFERENTIATE YOUR COMPANY (COW) FROM ALL OTHER COMPANIES (CATTLE). -USED BY CORPORATIONS TO CREATE UNIQUE & ATTRACTIVE PERSONALITIES FOR THEMSLEVES. -CORPORATIONS’ BRAND IDENTITIES ARE PERSONIFICATIONS OF WHO THEY ARE & WHERE THEY’VE COME FROM. -ENABLES THEM TO CREATE INTELLECTUAL & EMOTIONAL BONDS WITH THE GROUPS THAT THEY DEPEND ON: -CONSUMERS & EMPLOYEES
BRAND DRIVERS -SLOGANS, LOGOS, SYMBOLS, MACOTS, CELEBRITY ENDORSEMENTS, ETC. TO REINFORCE “HUMAN QUALITIES”
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 OTHER COMPANY/PRODUCT ON THE MARKET LIKE YOURS.
“ CORPORATIONS, AS BRANDS, HAVE SOULS.” BRANDING = PERSONALITY “ FRIEND & NEIGHBIOR” “ FAMILY” -CORPORATION: COLD, IMPERSONAL, & SUBJECT TO MISUNDERSTANDING & DISTRUST. -FAMILY: PERSONAL, HUMAN, FRIENDLY.