John D. Rockefeller and the Standard Oil Trust – Stakeholder Analyses
There were many stakeholders in the Standard Oil Trust case: John D. Rockefeller himself – the largest and most influential shareholder of Standard Oil, his bank lenders who he borrowed from to help expand his refineries, his employees – particularly his inner circle of managers and high-level committees that helped him control business operations in the several different companies within the trust, the railroads, their consumers, their competitors, the US government, and even the media – such as Ida Tarbell.
Rockefeller’s influence was by far the most substantial to Standard Oil’s success. He was the founder and largest shareholder of the company and his fundamental ideas for the company from the beginning, to produce at low-cost and high-volume, driving out all competition, are what allowed Standard to grow into such a powerful force in the market. He benefited from the profits Standard Oil brought in enormously but at the price of public hatred – which worried him throughout his life.
Next, Rockefeller’s bank lenders who invested in his business venture to expand his refinery in the 1860’s. Like any investor, they are hoping to see a return on their investment. Their desire was for Rockefeller’s business to succeed. I’m sure they must have asked Rockefeller “what makes you think you can emerge above all other refiners in the region struggling to make a profit?” Had they not invested in his business, his idea to create a large-scale refinery may not have ever come to life.
Another internal stakeholder in the Standard Oil Trust case was the committees that controlled business operations among the different refineries once Standard Oil was a trust. In order for Standard Oil to remain the market leader, Rockefeller insisted on strict organization among the different companies. These committees