1. CHAPTER 2 DISCUSSION QUESTIONS 1) IS IT POSSIBLE FOR A CORPORATION TO MEET THE NEEDS OF ITS SHAREHOLDERS, CUSTOMERS, AND ENVIRONMENT? CAN/SHOULD BUSINESS BE ABOUT MORE THAN PROFITS? 2) EXPLAIN THE DODGE V. FORD CASE? 3) WHAT IS THE KYOTO PROTOCOL? HOW MUCH CONSIDERATION FOR THE ENVIRONMENT SHOULD CORPORATIONS ASSUME? 4) WHAT DOES IT MEAN TO DEFINE CORPORATIONS AS PSYCHOPATHIC? WHAT ARE CORPORATION’S PSYCHOPATHIC TRAITS? 5) WHAT IS “CAPITALISM WITH A CONSCIENCE?” HOW DOES PFIZER EXEMPLIFY THE CONCEPT? 6) FIND A COMPANY THAT, IN YOUR OPINION, HAS A SOLID CORPORATE SOCIAL RESPONSIBILITY PLAN. WHAT COMPONENTS OF THE PLAN DO YOU FEEL MAKE IT SOLID?

2. 1) WHAT IS “CAPITALISM WITH A CONSCIENCE?” HOW DOES PFIZER EXEMPLIFY THIS CONCEPT? 2) EXPLAIN THE PURPOSE OF THE KYOTO PROTOCOL. 3) WHAT DID HENRY FORD BELIEVE ABOUT HOW THE FORD MOTOR COMPANY SHOULD DO BUSINESS? 4) WHY DID THE DODGE BROTHERS TAKE HENRY FORD TO COURT? 5) WHAT WAS THE SUPREME COURT’S DECISION? 6) WHAT DOES IT MEAN TO SAY THAT CORPORATIONS ARE PSYCHOPATHIC? WHAT ARE THE PSYCHOPATHIC TRAITS OF SOME CORPORATIONS?

3. IS IT POSSIBLE FOR A CORPORATION TO MEET THE NEEDS OF ITS SHAREHOLDERS, CUSTOMERS, AND ENVIRONMENT? CAN/SHOULD BUSINESS BE ABOUT MORE THAN PROFITS? PROFIT MAXIMIZATION VS PROFIT MOTIVE PROFIT MAXIMIZATION: -AN ECONOMIC PRINCIPLE BY WHICH AN ORGANIZATION SEEKS OUT THE GREATEST LEVEL OF PROFIT (SHORT-TERM). -THE DECISION TO MAKE AS MUCH MONEY AS POSSIBLE. PROFIT MOTIVE: -DESIRE TO EARN A FAVORABLE RETURN ON INVESTMENT (ROI). -THE WAY AN ORGANIZATION GOES ABOUT EARNING PROFIT (LONG-TERM).

4. CAPITALISM WITH A CONSCIENCE: -LOOKING BEYOND PROFIT TO TRY & FUNDAMENTALLY CHANGE, FOR THE BETTER, THE SYSTEM THE BUSINESS IS WORKING WITHIN. SHORT –TERM: -SELL MORE PRODUCTS = $$$ LONG-TERM: -BUILD BRAND LOYALTY = $$$ -ALL ORGANIZATIONS SHOULD THINK ABOUT THE SHORT-TERM BUT FOCUS ON THE LONG-TERM.

5. BRAND LOYALTY -”DEDICATION TO A COMPANY.” -MORE THAN JUST REPURCHASING. -LOWER PRICE. -LACK OF VIABLE OPTIONS. -CONVENIENCE. -TRENDY. -A PERSON WHO IS BRAND LOYAL TO A COMPANY WILL PURCHASE A COMPANY’S PRODUCTS/SERVICES REGARDLESS OF PRICE, CONVENIENCE, ETC. -QUALITY. -SERVICE. -EMOTIONAL ATTACHMENT.

6. 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 THE AMAZON) ARE “COMMUNITY TRADED.” COMMUNITY TRADED: -GOODS ARE TRADED FAIRLY & AT A PRICE WHICH SUSTAINS THE PRODUCERS OF THE PRODUCTS (FARMERS).

7. CAPITALISM WITH A CONSCIENCE “ IF WE REALLY WANT TO IMPROVE THE CONDITIONS OF AMERICAN 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 TO PREVENT TRACHOMA.

8. COMPANIES INCORPORATE THE IDEA OF “CAPITALSIM WITH A CONSCIENCE” IN THEIR CSR PLANS

9. “ WE’VE EVOLOVED HOW WE FRAME, DEFINE, & APPROACH CORPORATE RESPONSIBILITY.” -IN 2005 NIKE WAS THE FIRST COMPANY IN ITS INDUSTRY TO DISCLOSE ITS FACTORY LIST. -SINCE 2005 NIKE HAS INVESTED $100 MILLION WORLDWIDE IN COMMUNITY-BASED SPORTS INITIATIVES, & EXPECTS TO INVEST ANOTHER $315 MILLION BY 2011. -NIKE FOLLOWS A “CONSIDERED” DESIGN ETHOS ACROSS ALL NIKE FOOTWEAR, COMBINING PREMIUM DESIGN & PERFORMANCE INNOVATION WITH ENVIRONMENTAL SUSTAINABILITY.

11. KYOTO PROTOCOL -The Kyoto Protocol is an agreement made under the United Nations Framework Convention on Climate Change (UNFCCC). Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases, or engage in emissions trading if they maintain or increase emissions of these gases. -The objective is the "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic (caused or produced by humans) interference with the climate system.” -The Kyoto Protocol now covers more than 160 countries globally and more than 60% of countries in terms of global greenhouse gas emissions. This treaty expires in 2012, and international talks began in May 2007 on a future treaty to succeed the current one.

12. “ CORPORATE SOCIAL RESPONSIBILITY IS ILLEGAL, AT LEAST WHEN IT IS GENUINE.” -WHAT DOES THIS MEAN? -AGREE/DISAGREE? *BY DEFINITION, A CORPORATION’S MAIN PURPOSE IS TO MAXIMIZE RETURNS TO ITS SHAREHOLDERS. -ITS MAIN RESPONSIBILITY IS TO ITS SHAREHOLDERS & NOT SOCIETY.

13. DODGE VS FORD

14. CASE: 1916: -JOHN FRANCIS DODGE & HORACE ELGIN DODGE OWNED 10% OF THE FORD MOTOR COMPANY. -2 ND LARGEST NUMBER OF SHARES NEXT TO HENRY FORD. -HENRY FORD: -"My ambition is to employ still more men, to spread the benefits of this industrial system to the greatest possible number, to help them build up their lives and their homes. To do this we are putting the greatest share of our profits back in the business." -FORD WANTED TO END SPECIAL DIVIDENDS FOR SHAREHOLDERS IN FAVOR OF REINVESTING MONEY 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.

15. JUDGMENT: A FOR PROFIT BUSINESS CORPORATION’S MAIN OBJECTIVE IS TO MAXIMIZE PROFIT FOR ITS STOCKHOLDERS, NOT THE COMMUNITY OR ITS EMPLOYEES.

16. “ 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?”