1.

With references to the levels and spheres of corporate power discussed in the
chapter, how did the power of Standard Oil change society? Was this power
exercised in keeping with the social contract of Rockefeller’s era?
Basically, with references to the levels and spheres of corporate power discusses in
the chapter, I would say that the power of economic, cultural and political of the Standard
Oil has lead to the big changes to the society. Based on the text book mentioned that “
Rockefeller’s company was capitalized at 70$ million and produced 90 percent of the
nation’s refining output.” This has shown how strong is the economic power of Standard
Oil. The Standard Oil Company built the facilities, employ workers. At a deeper level it
can make fuels lead to the growth of auto industry. Besides that it can boost up the
American economy.
Standard Oil’s economic power was not exercised in keeping with the social contract
of Rockefeller’s era. From the text it’s very obvious that Rockefeller against the social
contract, this can be shown when Rockefeller was practicing “power beyond right” .In
additional he used those unethical method to eliminate his competitor from the oil
industry. For an example “He made them ‘sweat’ and ‘feel sick’ until they sold.” This
statement has clearly show Rockefeller used aggressive way to fight with the competitor
for his own interest.
2. How does the story of Standard Oil illustrate the limits of business power?
Does it better illustrate the dominance theory or the pluralist theory in the
chapter?
From the case, Standard Oil had exceeded the limits of business power. Business
power can be defined as the force behind an act by a company, industry, or sector.
Rockefeller used his business power to eliminate his competitors and also prevent his
competitors from getting the oil barrels in the market so that he can control the oil
industry. Business power is used for convert resources efficiently to meet the need of
goods given by the society to the company, but Rockefeller was using it in the wrong
ways.
Dominance theory is the best theory that can be applied on Standard Oil Company
in this chapter. Standard Oil Company was more emphasizes on the growth of their asset
rather than the welfare of the society. According to the dominance theory, business
abuses the power its size and wealth confer. Rockefeller monopolized most of the oil
businesses in the U.S. From the way how Rockefeller monopolized the oil industry,
reduces the competition and then harm his competitors is the best way to describe the
dominance theory.
 3. Did Rockefeller himself ever act unethically? By the standards of his day? By
those of today? How could he simultaneously be a devout Christian and a
ruthless monopolist? Is there any contradiction between his personal and
business ethics?
Rockefeller did act unethically by the standards of his day. This is clearly shown
where he ordered his marketing agents to destroy independent suppliers, so that he can
control over it. Besides that Rockefeller bride his competitors’ employees to pass the
confidential information to his company so that he know what type of strategies he
should apply to defend his competitor. Rockefeller was using unethical methods to
dominate the oil industry and make Standard Oil become the biggest oil company in the
U.S.
When a person is become rich he or she wishes to be richer, this same goes to
Rockefeller. Rockefeller could be a devout Christian but at the same time he could be a
monopolist. When it comes to business Rockefeller can be a very realistic and cruel
businessman. When the manager leaked information to the press, he immediately ordered
his secretary to inform the manager he does not need the services of the manager after the
close of the month. By the way Rockefeller thinks that he was doing the right thing.
Besides that he was alert all the time to make sure that there is no competitor can
dominate his oil industry. In additional from the point stated that he read bible daily has
shown he is a devout Christian. One thing he did not realize was that exercising the
unethical tactic to achieve his goal, was a big mistake that lead to the decreasing of moral
values for himself.
I believe there is contradiction between his personal and business ethics.
Rockefeller considered himself achieved his goal by using unethical tactics are right. The
reason of eliminating the competitor from the oil industry is to protect himself from any
other harm and to maintain his financial stability.

4. In the utilitarian sense of accomplishing the greatest good for the greatest
number in society, was the Standard Oil Company a net plus or a minus? On
balance, did the company meet its responsibilities to society?

In the utilitarian sense of accomplishing the greatest good for the greatest number in
society, the Standard Oil Company was a net plus. From how Rockefeller expanded the
Standard Oil Company in the beginning, the profit was increasing from time to time. He
dominated the oil industry and control the price of oil made him gained a lot of profit.
Besides that the Standard Oil Company was the only company produced 90 percent of the
nation’s refining output. Another point, would be the rebates given by the shipper to
Rockefeller had become the reason lead the Standard Oil Company increase in their
profitability .
 The Standard Oil company meet its responsibilities to society. The expensive
price of candle made most of the American could not afford to buy, and by that time the
main product which is illuminating oil had changed the living lifestyle of the people.
Previously most Americans went to sleep with darkness, but when the good quality of
illuminating oil was introduced and the price was affordable and safe to be used, most
Americans could own it. This can be viewed as one of the example the standard Oil
Company meet its responsibilities to society. Although Rockefeller had monopolized the
oil industry by eliminating his competitor but he still show the concern to the society, this
can be seen when he did not increase the illuminating oil to gain more profit, he set the
illuminating in a reasonable price so that everyone could afford.

5. Did strategies of Standard Oil encourage unethical behavior? Could

Rockefeller’s vision have been fulfilled using “nicer” tactics?

It is very obvious we can see that the strategies practiced by Standard Oil do
encourage unethical behavior. Rockefeller was a very unethical and ruthless
businessman, from the way he eliminated his competitors and make them into bankrupt
for his own benefits. Rockefeller could even bribed to misroute shipments, once again
show the unethical behavior in his strategies.

Rockefeller’s vision can be fulfilled using “nicer” tactics. By using “dirty” tactics
it can see growth of the Standard Oil Company quickly, but using “nicer” tactics it might
take time to see the result. As a ethical businessman it is very important to use “nicer”
tactics to dominate competitors. When a “nicer” tactics are applied on the competitive
strategies it does not harm other competitors. By paying the shipment cost below the rates
charged to his competitors were unfair. The victory of Rockefeller should be achieved by
using “nicer” tactics not “dirty” tactics.

References

Steiner, J. F. & Steiner, G.A. (2009). Business, government, and society: A managerial

perspective. York, NY: McGraw-Hill/Irwin.

Johnd.rockefeller.org. 2009. Retrieved November 10, 2010, from John D. Rockefeller:

http://www.johndrockefeller.org/

Project, T. L. (2004, May 21). Retrieved November 11, 2010, from The Dismantling of
The Standard Oil Trust: http://www.linfo.org/standardoil.html