1. CHAPTER 2 DISCUSSION QUESTIONS
1) 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 major
force 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 a
legal duty to put shareholders' interests above all others & no legal authority to serve any
other 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 world's second largest oil company & the largest single supplier of oil & gas
in the US?
10) What oil-drilling site do astronauts report being able to see from space at night?
11) 80% of the world's 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?
2. “BUSINESS LEADERS TODAY SAY THEIR COMPANIES
CARE ABOUT MORE THAN PROFIT & LOSS, THAT THEY
FEEL RESPONSIBLE TO SOCIETY AS A WHOLE NOT JUST
THEIR SHAREHOLDERS.”
AGREE/DISAGREE
3. CAUSE-MARKETING
“A TYPE OF MARKETING EFFORT THAT PROMOTES SOCIAL
& OTHER CHARITABLE CAUSES.”
-EFFORTS BY A FOR PROFIT BUSINESS THAT BENEFIT A
NON-PROFIT ORGANIZATION.
4. “LIVESTRONG”
-CAMPAIGN LAUNCHED IN MAY 2004 TO HELP THE “LANCE
ARMSTRONG FOUNDATION.”
-NIKE MANUFACTURES THE BRACELETS & HOPED TO
RAISE $25 MILLION.
-GOAL WAS REACHED IN 6 MONTHS.
-OVER 80 MILLION HAVE BEEN SOLD TO DATE.
LIVESTRONG COMMERCIAL
5. “SAVE LIDS TO SAVE LIVES”
-YOPLAIT’S CAMPAIGN IN SUPPORT OF THE “SUSAN G.
KOMEN FOR THE CURE.”
-YOPLAIT PACKAGES SPECIFIC PRODUCTS WITH A PINK
LID THAT CONSUMERS TURN IN, & IN TURN YOPLAIT
DONATES 10 CENTS FOR EACH LID.
YOPLAIT COMMERCIAL
6. “PRODUCT RED”
-ONE OF THE LARGEST CAUSE-RELATED MARKETING
CAMPAIGNS TO DATE.
-CREATED TO SUPPORT “THE GLOBAL FUND.”
-FIGHTS AIDS, TUBERCULOSIS, MALARIA
-PARTICIPATING COMPANIES:
-DELL, APPLE, STARBUCKS, GIORGIO ARMANI, THE
GAP
PRODUCT RED COMMERCIAL
7. “BREWING THE AMERICAN DREAM”
-CAMPAIGN STARTED IN JUNE 2008 BY JIM KOCH, FOUNDER OF
BOSTON BEER COMPANY TO HELP SMALL BUSINESSES.
-MICROLOANS: FOOD & BEVERAGE SMALL BUSINESS OWNERS
CAN APPLY FOR CAPITAL NEEDED TO START OR EXPAND A
BUSINESS.
-SPEED COACHING: SMALL BUSINESS OWNERS CAN MEET
BOSTON BEER COMPANY EMPLOYEES FOR ADVICE ON
MARKETING, ACCOUNTING, ETC.
JIM KOCH INTERVIEW
8. CAPITALISM WITH A CONSCIENCE:
-BUSINESS PRACTICE COINED BY FORMER HARVARD
BUSINESS SCHOLAR IRA JACKSON.
-”LOOKING BEYOND PROFIT TO TRY & FUNDAMENTALLY
CHANGE, FOR THE BETTER, THE SYSTEM THE BUSINESS IS
WORKING WITHIN.”
-WILLIAM FORD, JR: “CORPORATIONS COULD BE &
SHOULD BE A MAJOR FORCE FOR RESOLVING
ENVIRONMENTAL & SOCIAL CONCERNS IN THE 21ST
CENTURY.”
9. 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).
10. 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.
11. “EXECUTIVES WHO CHOOSE SOCIAL & ENVIRONMENTAL
GOALS OVER PROFITS--WHO TRY TO ACT MORALLY--ARE,
IN FACT, IMMORAL.”
WHY?
12. BEST INTERESTS OF THE CORPORATION PRINCIPLE
-A FIXTURE IN THE CORPORATE LAWS OF MOST COUNTRIES.
-STATES THAT CORPORATE DECISION MAKERS SHOULD
ALWAYS ACT IN THE BEST INTERESTS OF THE CORPORATION
(OWNERS).
-FORBIDS ANY OTHER MOTIVATION* FOR CORPORATE DECISION
MAKERS 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
14. 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 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?”
CLIP 5: CASE HISTORIES
17. 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.
