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The corporation chapter 2
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The corporation chapter 2

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The corporation chapter 2 The corporation chapter 2 Presentation Transcript

  • CHAPTER 2 DISCUSSION QUESTIONS1) How did Pfizer help make the Flushing Avenue subway station safer?2) What drug that prevents trachoma does Pfizer donate to African countries?3) What new stage of capitalism believes that corporations could be & should be a majorforce for resolving environmental & social concerns in the 21st century?4) Milton Friedman believes there is but one social responsibility for corporate executives.What does he believe they must do?5) Why did John & Horace Dodge sue Henry Ford?6) What court case still stands for the legal principle that managers & directors have alegal duty to put shareholders interests above all others & no legal authority to serve anyother interests?7) What is the name of the principle that the above has come to be known as?8) What is the goal of the Kyoto Protocol?9) Who is the worlds second largest oil company & the largest single supplier of oil & gasin the US?10) What oil-drilling site do astronauts report being able to see from space at night?11) 80% of the worlds population that lives in developing countries represents only what% of the global market for drugs?12) What are some of the psychopathic traits used to characterize corporations?
  • “BUSINESS LEADERS TODAY SAY THEIR COMPANIES CARE ABOUT MORE THAN PROFIT & LOSS, THAT THEYFEEL RESPONSIBLE TO SOCIETY AS A WHOLE NOT JUST THEIR SHAREHOLDERS.” AGREE/DISAGREE
  • CAUSE-MARKETING“A TYPE OF MARKETING EFFORT THAT PROMOTES SOCIAL & OTHER CHARITABLE CAUSES.”-EFFORTS BY A FOR PROFIT BUSINESS THAT BENEFIT ANON-PROFIT ORGANIZATION.
  • “LIVESTRONG”-CAMPAIGN LAUNCHED IN MAY 2004 TO HELP THE “LANCEARMSTRONG FOUNDATION.”-NIKE MANUFACTURES THE BRACELETS & HOPED TORAISE $25 MILLION.-GOAL WAS REACHED IN 6 MONTHS.-OVER 80 MILLION HAVE BEEN SOLD TO DATE. LIVESTRONG COMMERCIAL
  • “SAVE LIDS TO SAVE LIVES”-YOPLAIT’S CAMPAIGN IN SUPPORT OF THE “SUSAN G.KOMEN FOR THE CURE.”-YOPLAIT PACKAGES SPECIFIC PRODUCTS WITH A PINKLID THAT CONSUMERS TURN IN, & IN TURN YOPLAITDONATES 10 CENTS FOR EACH LID. YOPLAIT COMMERCIAL
  • “PRODUCT RED”-ONE OF THE LARGEST CAUSE-RELATED MARKETINGCAMPAIGNS TO DATE.-CREATED TO SUPPORT “THE GLOBAL FUND.” -FIGHTS AIDS, TUBERCULOSIS, MALARIA-PARTICIPATING COMPANIES: -DELL, APPLE, STARBUCKS, GIORGIO ARMANI, THE GAPPRODUCT RED COMMERCIAL
  • “BREWING THE AMERICAN DREAM”-CAMPAIGN STARTED IN JUNE 2008 BY JIM KOCH, FOUNDER OFBOSTON BEER COMPANY TO HELP SMALL BUSINESSES.-MICROLOANS: FOOD & BEVERAGE SMALL BUSINESS OWNERSCAN APPLY FOR CAPITAL NEEDED TO START OR EXPAND ABUSINESS.-SPEED COACHING: SMALL BUSINESS OWNERS CAN MEETBOSTON BEER COMPANY EMPLOYEES FOR ADVICE ONMARKETING, ACCOUNTING, ETC. JIM KOCH INTERVIEW
  • CAPITALISM WITH A CONSCIENCE:-BUSINESS PRACTICE COINED BY FORMER HARVARDBUSINESS SCHOLAR IRA JACKSON.-”LOOKING BEYOND PROFIT TO TRY & FUNDAMENTALLYCHANGE, FOR THE BETTER, THE SYSTEM THE BUSINESS ISWORKING WITHIN.”-WILLIAM FORD, JR: “CORPORATIONS COULD BE &SHOULD BE A MAJOR FORCE FOR RESOLVINGENVIRONMENTAL & SOCIAL CONCERNS IN THE 21STCENTURY.”
  • CAPITALISM WITH A CONSCIENCE MISSION STATEMENT “TO DEDICATE OUR BUSINESS TO THE PURSUIT OF SOCIAL & ENVIRONMENTAL CHANGE.”-MANY OF THE INGREDIENTS USED IN ITS PRODUCTS (BRAZILIAN NUTS FROM THEAMAZON) ARE “COMMUNITY TRADED.”COMMUNITY TRADED:-GOODS ARE TRADED FAIRLY & AT A PRICE WHICH SUSTAINS THE PRODUCERS OFTHE PRODUCTS (FARMERS).
  • CAPITALISM WITH A CONSCIENCE“IF WE REALLY WANT TO IMPROVE THE CONDITIONS OFAMERICAN CITIES, WE BUSINESS PEOPLE HAVE TO TAKE RESPONSIBILITY.” -TOM KLINE, SENIOR VP, PFIZER-INSTALLED SECURITY CALL BOXES IN SUBWAY STATION.-DONATES ZITHROMAX TO AFRICAN COUNTRIES TOPREVENT TRACHOMA.
  • “EXECUTIVES WHO CHOOSE SOCIAL & ENVIRONMENTALGOALS OVER PROFITS--WHO TRY TO ACT MORALLY--ARE, IN FACT, IMMORAL.” WHY?
  • BEST INTERESTS OF THE CORPORATION PRINCIPLE-A FIXTURE IN THE CORPORATE LAWS OF MOST COUNTRIES.-STATES THAT CORPORATE DECISION MAKERS SHOULDALWAYS ACT IN THE BEST INTERESTS OF THE CORPORATION(OWNERS).-FORBIDS ANY OTHER MOTIVATION* FOR CORPORATE DECISIONMAKERS ACTIONS. *ASSIST WORKERS, IMPROVE THE ENVIRONMENT, HELP CONSUMERS SAVE MONEY. “CORPORATE SOCIAL RESPONSIBILITY IS THUS ILLEGAL, AT LEAST WHEN IT IS GENUINE.” CLIP 13: LIKE A GOOD NEIGHBOR
  • DODGE VSFORD
  • CASE:1916:-JOHN FRANCIS DODGE & HORACE ELGIN DODGE OWNED 10% OF THE FORD MOTOR COMPANY.-2ND LARGEST NUMBER OF SHARES NEXT TO HENRY FORD.-HENRY FORD: -"My ambition is to employ still more men, to spread the benefits of thisindustrial system to the greatest possible number, to help them build up their lives and theirhomes. To do this we are putting the greatest share of our profits back in thebusiness."-FORD WANTED TO END SPECIAL DIVIDENDS FOR SHAREHOLDERS IN FAVOR OF REINVESTINGMONEY INTO NEW PRODUCTION PLANTS. THIS WOULD LONG-TERM ALLOW FORD TO: -PRODUCE MORE CARS. -CUT COSTS & PRICES OF CARS. -EMPLOY MORE EMPLOYEES.-DODGE BROTHERS: -ARGUED THAT A CORPORATION’S PROFITS BELONG TO SHAREHOLDERS & THAT FORD HAD NO RIGHT TO GIVE THEIR MONEY AWAY TO CUSTOMERS, NO MATTER HOW GOOD HIS INTERNTIONS.
  • JUDGMENT:A FOR PROFIT BUSINESS CORPORATION’S MAIN OBJECTIVE IS TO MAXIMIZE PROFIT FOR ITSSTOCKHOLDERS, NOT THE COMMUNITY OR ITS EMPLOYEES.
  • “AS A PSYCHOPATHIC CREATURE, THE CORPORATION CAN NEITHER RECOGNIZE NOR ACT UPON MORAL REASONS TO REFRAIN FROM HARMING OTHERS.”WHAT DOES IT MEAN TO DEFINE CORPORATIONS AS “PSYCHOPATHIC?” CLIP 5: CASE HISTORIES
  • PSYCHOPATHIC:-HAVING AN ANTISOCIAL PERSONALITY DISORDER.PSYCHOPATHIC TRAITS:1) CALLOUS UNCONCERN FOR THE FEELINGS OF OTHERS.2) INCAPACITY TO MAINTAIN ENDURING RELATIONSHIPS.3) RECKLESS DISREGARD FOR THE SAFETY OF OTHERS.4) DECEITFULNESS: REPEATED LYING & CONNING OTHERS FOR PROFIT.5) INCAPACITY TO EXPERIENCE GUILT.6) FAILURE TO CONFORM TO SOCIAL NORMS WITH RESPECT TO LAWFUL BEHAVIORS.