...Abstract The problem to be investigated is the role of corporation in society and its ethical influence on social responsibility. There have been arguments that capitalism and corporations are responsible for economic ills of the society. It is therefore necessary to understand the role of corporation and ethical influence if any. In other to address the problem stated above it is necessary to define what capitalism and corporation are, and give background insight through meaningful literature reviews. According to dictionary.com capitalism is an economic system in which investments, ownership and means of production, distribution, and exchange of wealth is driven and maintained mainly by private individuals or corporations, in contrast to cooperatively or state-owned means of wealth. A corporation on the other hand is a business organization created by its owners known as stockholders under authority of the law to exist continuously independent of its members; powers and liabilities (limited liability) separated from those of its members.(American Heritage Dictionary). The answer to the problem stated above may be embedded in the "not a cold mete or fallen from the sky" statement of Dr. Novak (Jennings, 2012, p.108). Role of Corporation In Society The problem to be investigated is the role of corporation in society and its ethical influence on social responsibility. There have been arguments that capitalism and corporations are responsible for economic ills of the society It...
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...unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. | | | |7019-8 |McAllister, Chad | | | | |MGT |Case Study: Michael Novak: Capitalism and the Corporation | | | | Faculty Use Only Case Study: Michael Novak: Capitalism and the...
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...Case study: Michael Novak: Capitalism and the corporation The problem investigated is the growth of corporations and capitalism to the extent that they become unavoidably inseparable in order to maintain a cohesive, civil society. Corporations have been with humanity since the beginning of organized government. Capitalism can be loosely defined as the economic freedom to allow for the building of wealth, both individually and corporately. In order to provide for that freedom, governments must be in one accord with corporations to that end. Adam Smith’s writings tell us in the course of history that countries may finally become a “Nation of Commerce” as part of a natural progression. He further suggests an individual’s economy is inevitably woven into the fabric of society and that fabric should be allowed to grow without the interference of politics, which we can fairly judge as governments of all kinds (Smith, 1776). To this point, both Smith and Novak concur that, “sources of private capital and private wealth, independent of the state, are crucial to the survival of liberty”. (Novak, 1997, p. 32) The American corporation faces the responsibility of creating a social good beyond the four reasons given by Michael Novak. First, it creates jobs. Second, it provides desirable goods and services. Third, through its profits it creates wealth that did not exist before. Fourth, it is a private social instrument, independent of the state, for the moral and material support of other...
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...Big Business Corporatism Versus Free Market Capitalism Right now, there is a lot of talk about the evils of “capitalism”. But it is not really accurate to say that we live in a capitalist system. Rather, what we have in the United States today, and what most of the world is living under, is much more accurately described as “corporatism”. Under corporatism, most wealth and power is concentrated in the hands of giant corporations and big government is used as a tool by these corporations to consolidate wealth and power even further. In a corporatist system, the wealth and power of individuals and small businesses is dwarfed by the overwhelming dominance of the corporations. Eventually, the corporations end up owning almost everything and they end up dominating nearly every aspect of society. As you will see below, this very accurately describes the United States of America today. Corporatism is killing this country, and it is not what our founding fathers intended. Corporatism is actually not too different from socialism or communism. They are all “collectivist” economic systems. Under corporatism, wealth and power are even more highly concentrated than they are under socialism or communism, and the truth is that none of them are “egalitarian” economic systems. Under all collectivist systems, a small elite almost always enjoys most of the benefits while most of the rest of the population suffers.The Occupy Wall Street protesters realize that our economic system is...
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...examines interests of each role in social members and evaluates power relations in society, which covers government, corporations and civil society. Research method is covered a literature review which is based on quality academic journal articles, texts and research institutes’ materials. The report clarifies each member’s interaction and its power residents. This power resident and relationship can be reformed through social agenda setting. There is possibility that power-balanced society in capitalism can be diminished through its change into neoliberalism agenda. This is examined through reviewing Japan’s development in last couple of decade. Contents Table 1.0 introduction..............................................................................................3 2.0 Role and power resident.........................................................................3 2.1 The role and power resident of Government.....................................................3 2.2 The role and power resident of Corporations....................................................4 2.3 The role and power resident of Citizens...........................................................5 3.0 An Interaction of Government, Corporations and Citizens…………6 4.0 Character of social context (capitalism, neoliberalism)…………....7 4.1 A power interaction in Capitalism...................................................................7 4.2 A power interaction in Neoliberalism...
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...Throughout history, there were many oppressive systems so the elites can keep the masses in check. They include feudalism, which ties and forces peasants to work on a piece of land, slavery which turns people into property, and recently, capitalism. Capitalism is a system where trade and industry is in the hands of private owners and not the state.Although people claim that capitalism gives people more freedom over their wealth, it is one of the many forms of oppression as it is the cause of exploitation of labour and resources. Capitalism leads to the exploitation of human resources. According to David William Pear, Henry Kissinger states that, “Who controls the food supply controls the people; who controls the energy can control whole...
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...Capitalism Is the Devil The United States was founded by numerous founders who wanted to build the best nation in the world. According to the Constitution, the right should be given to “We the People”. The government should build “a more perfect Union” and promote “the General Welfare”. It has always been a dream. It is a goal that we cannot reach. But somehow, capitalism has been disguised as the best system ever devised, making citizens believe that it is the only way we can reach our goal. And it leads us to an irreversible situation of plutocracy. It is Michael Moore who pulls back the curtain on capitalism to reveal the insidious role it has played in the destruction of our American dream. In his documentary film “Capitalism a love story”, Michael Moore demonstrates the failure of Capitalism as an economic system in America. The movie explores what capitalism is, who benefits and whom capitalism hurts. Moore shows us how capitalism has been hijacked by entrepreneurs and how it jeopardizes the middle class. The poorest, uneducated, and hardworking middle class are the most likely people to be taken advantage of by the unscrupulous corporations such as the home loan industry, health insurance industry and many others businesses. According to the film, some people are no longer able to live in their own house, which they live for decades, because they cannot pay their bills or the authorities have sold their land to corporations. Kids in Pennsylvania are sent to private...
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...Drake Gutierrez 04/04/2012 Professor Hallsted English 1A A Global Market: Corporation Domination Globalization will indubitably strain the process of development of third world countries and would in fact deteriorate already developed countries. With the implementation of fair trade policies and the straining policies that the WTO (World Trade Organization) initiates, globalization will become a threat to the current status of power around the world. Globalization is the process by which regional economies, societies, and cultures have become integrated through a global network of politics through communication, transportation, and trade. Globalization will create a one world economy, where big global corporations make a fortune exploiting slave labor on the other side of the world. With the treat of these global corporations taking control of the world economy because of fair trade policies, Naomi Klein’s argument about disaster capitalism that is discussed in her book The Shock Doctrine, can be directly related. Globalization helps develop third world countries in response to the outsourcing of jobs that multinational corporations carry out. As more capital is poured in to developing countries, those countries will acquire economic stability and increase their standard of living. In return the economy that those individuals belong to will also begin to grow. As stated in Forbes Magazine, “Per-person income in China has climbed from $16 a year in 1978 to $2,000 now...
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...business and machine Edward Abbey’s 1975 novel The Monkey Wrench Gang presents four lawless protagonists’ eco-sabotage against overdevelopment carried by big business corporations. Abbey introduces necessary consequence of the corporations and capitalism on nature, showing that the damage they cause is higher than the benefits they produce. Encouraging resistance to global capital, he inspires direct protection of the threatened natural environment. The recurring motif, the resemblance of machine and big business corporations, throughout the novel serves to reflect Abbey’s argument that monkeywrenching should be directed toward machines and capitalism. Abbey employs an allegory of transnational corporations to foreground his opposition to capitalism. When Doc, Smith, Bonnie, and Hayduke see the industrial wastes of the Black Mesa coal mine, Doc responds with an image of monster, “The whole conglomerated cartel spread out upon half the planet Earth like a global kraken, pan tentacles, wall-eyed and parrot-beaked, its brain a bank of computer data centers, its blood the flow of money, its heart a radioactive dynamo, its language the technetronic monologue of number imprinted on magnetic tape” (172). In the description, coal mining operation for energy production is linked through global capital to big business corporation. Doc reflects on the size and the destructive power of the operation as compared to the “Kraken” of Scandinavian myth that dwells at the bottom of the sea, rising...
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...Due to the limited resources and unlimited human wants, whole world faces problem of scarcity. Therefore, capitalism is needed to solve these production decision such as what and how to produce the goods and services and distribution decision such as for whom to produce the goods and services. Capitalism is an economic system in which the major portion of production and distribution is in private hands, operating under what is termed a profit or market system. In the country which works on capitalism system, the production and distribution decisions are made by private individuals who are free to pursue their self-interest and their decisions are coordinated and communicated through price signals which also means by profit motive in the market. I believe that the morality of capitalism is debatable, whether the capitalism is moral or immoral have to view it from different sides of perspective. Utilitarianism said that an action is judged as right, good, or wrong on the basis of its consequences. It emphasizes that greatest good for the greatest number of people. In other words, the goods have to be maximized for everyone affected by the decision (Weiss J.W., 2008). When all the costs are added and compared with the results, if the benefits outweigh the costs, then the action may be considered ethical. In a capitalist economic system, individuals have natural rights to property. They can possess, use and dispose the means of production or distribution such as equipment, machines...
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...BMO5501 BUSINESS ETHICS AND SUSTAINABILITY Assignment 2 : Reflective Journal Page 1. Overview 2-3 2. Table of Contents a) Business Ethics 4-5 b) Sustainability 6-7 c) Capitalism 8 d) Corporate Social Responsibility 9-11 3. References 12 Overview The three main topics of the course, Ethics & Business Ethics, Sustainable Development and Corporate Social Responsibility (CSR) are very relevant in today’s business world. The phasing and sequencing of readings starting with Ethics, then to Sustainability and ending with CSR provides a good foundation to the business practices of CSR. Without the foundational understanding of Ethics normative theories and Sustainability phenomenon and issues, and the concepts of socialism, capitalism, corporate citizenship, the readings and eventual learning about the subject of CSR would be more superficial and spiritless. The 4 key normative ethical theories of Egoism, Utilitarianism, Kant’s, Rights have very different moral reasoning in judging what is right or wrong, good or bad. Egoism is very individualistic and consequentialist. Utilitarianism is also consequentialist but based upon the aggregated greatest number of well beings. The opposite of these two are non-consequentialist, one theory is based on the motives – Kant’s categorical imperative and second theory is based on Rights, human rights and natural rights. Each ethical theory has its valid...
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...Of course free-market capitalism is flawed. But it is no worse than socialism or communism or any other man-made societal structure. All systems will fail in time because any system can be abused, and it is human nature to take advantage of such things Capitalism increases our standard of living but not necessarily our morals. However, when we look at Socialist Europe, we see neither morals nor standards of living comparable to the US. We have bigger houses, more cars, take shorter vacations to more exotic places than the Europeans. We don't have full frontal nudity for men and women as is common on European TV and in their movies. We don't have legalized prostitution as in Holland and we don't pay more than half of our incomes for all the free things European get from their governments. But wait... it's all coming to a neighborhood near you and soon. It's not capitalism that is the problem, it's the government's over-involvement in business, corporations and capitalism that is the problem. If you read Farrell's examples they are all caused by the marriage between government and business. Some regulation is necessary, but modern government uses corporations and capitalism as a means to all its ends. For example, healthcare beefs up insurance companies in order to force everyone to buy health insurance and participate in the exchanges. The bailouts provided enormous amounts of money to stabilize car companies and banks, so that people could still borrow money and employees...
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...These models are like prisms, each having a different refractive quality, each giving the holder a different view of the world. Depending on the model (or prism) used, a person will think differently about the scope of business power in society, criteria for managerial decisions, the extent of corporate responsibility, the ethical duties of managers, and the need for regulation. The following four models are basic alternatives for seeing the BGS relationship. As abstractions they oversimplify reality and magnify central issues. Each model can be both descriptive and prescriptive; that is, it can be both an explanation of how the BGS relationship does work and, in addition, an ideal about how it should work. The Market Capitalism Model The market capitalism model, shown in Figure 1.2, depicts business as operating within a market environment, responding primarily to powerful economic forces. There, it is substantially sheltered from direct impact by social and political forces. The market acts as a buffer between business and nonmarket forces. To appreciate this model, it is important to understand the history and nature of markets and the classic explanation of how they work. Markets are as old as humanity, but for most of recorded history they were a minor institution. People produced mainly for subsistence, not to trade. Then, in the 1700s, some economies began to expand and industrialize, division of labor developed within them, and people started to produce more for trade...
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...Motor Company wants society chose their products as their vehicle objective. The Government has to ensure that Ford Motor Company operates ethically to not harm the environment or the customer. There are four different models that how Business, Government and Society should interact: 1. The Market Capitalism Model, 2. The Dominance Model, 3. The Countervailing Force Model, 4. The Stakeholder Model. The Market Capitalism Model: Dominance: - The represents primarily the perspective of business critics. In it, business and government dominate the great mass of people. Countervailing Force Model: - To maintain public support, business must adjust to social, political and economic forces it can influence but not control. Stakeholder Model: - An Entity is benefited or burdened by the actions of a corporation or whose action may benefit or burden the corporation. After read the definitions of Business, Government and Society I think this three organization related each other. And relationship currently exist. But sometimes government need to take a look why corporation prefer to pay the fines ********* than fix their problems. Market Capitalism: - The definition of market capitalism is based on an economy that is focused on supply and demand, where...
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...for those that actually own stock in the business – the owners, or stockholders. A strong believer in his reconceptualized Stakeholder Theory of the Modern Corporation, R. Edward Freeman believes the key to success in business is several stakeholders working together in a sort of interconnected “corporate system”. Freeman begins his argument by raising a simple question: For whose benefit and at whose expense should the firm be managed? To answer this question, Freeman attempts to explain why managerial capitalism no longer works. He notes, “The basic idea of managerial capitalism is that in return for controlling the firm, management vigorously pursues the interest of the stockholders” (Freeman, 38). Freeman begins to attack this idea of managerial capitalism with several arguments pertaining to why this form of capitalism no longer can work. He argues that corporations act with limited liability for their actions and remain seemingly immortal since the existence of the business “Transcends that of its members” (38). What he means by this is that if the business does something that is seemingly illegal, or something the government or public does nott like, the members of the business are the ones who are punished, not the business itself; therefore, the business survives. Under this managerial form of capitalism, management does everything in their...
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