CHAPTER 2 DISCUSSION QUESTIONS1) Business leaders today say their companies care about morethan profit & loss, that they feel responsible to society as a whole,not just to their shareholders. Do you agree/disagree? Why?2) Thanks to Pfizer, how is the Flushing Avenue subway stationsafer?3) What is "capitalism with a conscience?"4) Executives who choose social & environmental goals overprofits--who try to act morally--are, in fact, immoral. Why?5) Explain the Dodge v. Ford case.6) What does the "best interests of the corporation" principlestate?7) What is the goal of the Kyoto Protocol?8) What oil-drilling site do astronauts report being able to see fromspace at night?9) What has made Anita Roddicks business, the Body Shop,unusual?10) What does it mean to diagnose a corporation as psychopathic?
“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. QuickTimeª and a decompressor are needed to see this picture. 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. QuickTimeª and a decompressor are needed to see this picture. 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.
KYOTO PROTOCOL-The Kyoto Protocol is an agreement made under the United Nations FrameworkConvention on Climate Change (UNFCCC).-The objective is the "stabilization of greenhouse gas concentrations in theatmosphere at a level that would prevent dangerous anthropogenic (caused orproduced by humans) interference with the climate system.”-37 countries (NOT THE US) have committed to reducing their emissions ofcarbon dioxide and five other greenhouse gases.-This treaty expires in 2012, and international talks began in May 2007 on a futuretreaty to succeed the current one.
“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
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 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 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:• CALLOUS UNCONCERN FOR THE FEELINGS OF OTHERS.• INCAPACITY TO MAINTAIN ENDURING RELATIONSHIPS.• RECKLESS DISREGARD FOR THE SAFETY OF OTHERS.• DECEITFULNESS: REPEATED LYING & CONNING OTHERS FOR PROFIT.• INCAPACITY TO EXPERIENCE GUILT.• FAILURE TO CONFORM TO SOCIAL NORMS WITH RESPECT TO LAWFUL BEHAVIORS.