Ch 1 Standard Oil trust > incorp in 1882 by Rockefeller (Quiet, meticulous, secretive manager) Emphasized cost control, efficiency,

centralized organization,
and suppression of competitors. Sherman anti act outlaw its mono in 1890. 1911, trust broken into 39 companies.
Original Seven sisters, Exxon, mobil, shell, british petroleum, gulf, Texaco, and chevron. New sisters, Saudi Aramco, Gazprom(Russia), China National
Petroleum, national Iranian oil co, Petrobras (brazil) petronas (Malaysia) Petroleos de venezeula.
Gov-structs and pros in soc that authoritatively make and apply polcy/rule. Soc network of human relations 3 elem(ideas-intang obj of thought(secular
ideol-demo, cap, soc)institutions-relations of people to accomplish goal, Material things(tangible, land, resources, goods)
The Market-Judicial(protect prop rights)Financial(mobilize cap for sav,borrow)Corp(combine cap/labor, encou risk)Media, cultural, Political(make econ pol,
collect tax)Regulatory(protect public from fraud)
Business responsive(non)econ envir>Exxon Valdez oil spill. Basic agreement (SOCIAL Contract) exists between econ inst and other net of power.
4 models of BGS relation-Market Capitalism-econ emerges when ppl move beyond sub prod to pro for trade, maket take central role. Market acts as a
buffer between bus and nonmarket forces. Adam Smith (Wealth of Nations) called capitalism (econ ideo private ownship of pro, pro motive, free comp,
limited gov restraint) Commercial Society. Managerial cap-mark econ domin bus are larg firm > Laissez-faire Let us alone gov inter in market is
undesirable >> constraints:Gov reg limit, market will discipline econ act to promote soc wel, proper measure of corp performance is profit, ethical duty of
management prom inter of share. DOMInance Model (bus and gov dominate mass) focus on errors of capitalism. Reforms to demo principles, no rep of
idea. Populism (oppressed take over elite) Marxism(ideo that workers should revolt against prop own capitalists who exploit them, replaced w econ and
pol domination with more equal demo soc inst) Karl Marx, cap soc an owner class domin econ and rul insti. COUNTERvailing forces model Enviorn
catalysts (markets,tech,movement) the public(cultural values, voting, public opionon) Business (products,lobbying,philanthropy)
gov(constitutions,regulat,laws) STAKEHOLDER model corp at the center of array of relat (stakeholders-benefit or burdened by actions of corp) Primary
stake (gov, custo,stock,employ) 2
nd
sake(activists, politicians, schools) intended to revitalize capitalism.
Ch 2 Royal Dtuch Shell elite scholars write alt vers of future (scenarios-plausible story of fut based on assump of current trends) Saw change in global bus
caused by 3 forces (globalization, tech change, liberalization(Econ policy of loweing tariffs) Henry adams defined historical forces anything that does, or
helps to do,work Industrial revolution-turned simple economies of farmers and artisans into complex Indus soc, increase wealth and nation power (Britain
first, advances and inventins (Steam engine). Remakes societies, elevates standard living. Inequality-status dis, class struct, gaps. Envy, fair distr. Measured
by Gini index, stat meas of ineq, 0 is per equ. Reached 64% 1950. Econ growth itself doesnt incr income ineq. Dis of inc more ineq. Perp by soc insti such
caste, marriage, land own, law. POP Growth- 2 causes, advances in water san, hygience, med, 2
nd
mechanized farm expanded food sup to feed. Growth will
slow, replacement fertilaity rate (# of child a wom have to unsure one daughter survives to rep age) of 2.1. falling fert, low mort, and migration will drive
fut pop changes. TECHNOLOGY-steamengine, waterwheel and iron make. Euro came to amer, wage dep, strained amer pol stability. GLOBAILZATION-
creation of net of hum inter that san worldwide dis. (econ, pol, soc, mil, envir)trade expan increased. NATION_STATES-an int act having a rule auth,
citizens, and a territory with fixed borders. Nat often irrartionally def and bound lines split hist areas of cult, ethn, rel, lang. unit of hum org ind and cult
groups can infl their circum and fut. Choice, close borders isolating econ, or open bord, allowing free rein market forces, which reduces auton. Epidemics,
terrorism. DOMINANT IDEOL- idel sum of sensory perception and rational thought. Vibrant pluralism belief existed. Locked in constant dawinian struggle.
Humanity on upward matieral better (Dawinism) idea of progress (soc Darwin) GREAT LEADERSHIP Alexander imposed his rule over Med world, trade
routes. Adolf Hit, Stalin, strong leaders, but unleashed evil. Rockfeller, opp in new Indus. Simply ride (Arnold Toynee) Change history (Thomas Carlyle) John
Astor of Amer Fur co. CHANCE unpred causes. Nicollo Machiavelli fortune deter half the course of human events, and beings other half. Six external
Environments. ECON ENVIRON housing bubble, slow uneven global recovery. Rising trade> 16 tril in trades. WTO embodies ongoing process of trade
liberalization (promote trade by easing restrictions 153 countries) and FDI (cap invest by private firms outside home count) TECH move- nano tec. Digital
com, wikis. CULTURAL ENVI- cult system of shared knowledge. Conflcits of business.GOV ENVIR democracy (pop sov, political lib, major rule) LEGAL ENVIR
soft law guidleines for corp behave from emer norns and stand in inter codes, declara.NATURAL ENVI- geo force with power to change. Depleted
resources etc.
INTERNAL ENVIOR (managers, owners, employees, directors) Forces in external envir reduced power of int Growth of reg has limited power of mang over
employ, entitled to rights. Tech chang manag glob prod of goods.
Ch 3 Power used to organ and contr ppl and materials. Sources wealth, know, law, unevenly dist. Business pow, greater the force, more change. Soc contr
legitimizes pow by giving moral basis (rightful use of power). John locke, tyranny. exercise of power beyond right breach of contract. B.P intangible,
known great or small by its effects. Econ power, deep level, accumulating impact of corp econ act. Corp created enough wealth to raise living stand. Tech
power, surface, assembly lines new motors henry Ford. Deep lvl, unanticipated consequences. POL pow, deep lvl, world indu radiate freedom. Legal Power,
deep lvl, cons of Indus act. CULT pow, mothers day>materialism over acsceticism. Envir power, surface polluate air. Deep, altered earths atm. Story of
Railroads, change NYSE, roaring markey. Before, pop was stable. Young left to cities and fortunes. Spread impersonality and ethic of commerce.DOM
theory, control of wealth. Pwer is excessive and inad checked. Corrupt pol. Punlic failed to see growth, colossal greed. U.S steel Co first co 1 billion. ELITE
dom, C. Wright Mills, power elite small grp control econ, gov, mil. Globalization > superclass emerged. Formed some comb of wealth, ability, pos, social
status are timeless and inevitable. White, male, Christian. Pluralist theory, multiple groups and inst, power diffused. Infused with demo values. Laws apply
to all equally, constitution guarentees rights protect freedom.open pol sys. 4 boundaries on managerial power. Gov and laws, regulate business. Social
interest groups boycotts, lawsuits, picket lines. Social values>norms of duty, justice, truth. Markets and econ stake-stockhol, employ, creditors influ corp
decis.
Ch 4 Mary mother Jones. 2 underlying sources of criticism of business, ancient and moden. First is the belief that ppl in bus place profit before more worthy
values such as honesty truth justice. Second, strain of economic development.Agrarian society-largely agricultural econ. Greece and rome, subsistence agri.
Largest factory in Athens, 120. Commerical act in rome. Plato- insatiable appetites, pursuit of money, wealth spanwed evils (envy, war) Virtue and
Wealth Rulers of utopian soc in Republic not allowed to own, in fear of corruption. Aristotle-need of things for subsistence. Natural and moderate.
Acquisition was lower, no inner value. Happiness ultimate goal. justice, wisdom, courage,Goods of the soul Epictetus and Marcus aurelius, inner peace
rich person. He who is content. Roman catholic church, profit seeking. Wealthy and corrupt ruling class. S. Augustine, material wealth was fixed in supply.
Rich violated natural equality of creation. St. Thomas Aquinas, influenced by Aristotle, Just price fairness. Market supply price deter by interaction of sup
and dem. Condemned usury, lending money for interest. Protestant ethic, work was a means of serving God (M. luther and John calvin) Alexander
Hamilton secr of treasuary, young ambitious. Believed industrial gro would increase nat power taxation, tariffs, national bank. Jefferson opposed him.
agrarian econ prevent rise of subservience to wealthy, bring equa. Fated to exist in shadows of Indus grow. Owen dubbed socialism ppl tried to build
utopia. Populists and Prgroessives Pop movement- successes in electing state off, regulate railroads >Interstate Commerce commsion. Unstable coalition
of interests. Progressive Movement pol move moderate social reform with progress > Progressivism mainstream pol doctrine. Cure social ills with gov. far
more effective. Francois-Noel Babeuf, French equality for all. Beheaded. Karl Marx and Engels, The communist Manifesto Workingmen of all countries
Unite U.S indust gro, exploitation. Child labor, inequality. Unions fought by empl. First big national Union Knights of Labor reforms to protect labor,
rather than overthrow cap.Pres Hayes called for federal troops to protect DC, rather than restore order. New progressives Corporations have too much
power, corps have inordinate legar rights, corps are inherently immoral. NGO (nongov orgs) nonprofit orgs not part of gov. Civil society-global zone ideas,
dosclours, and action, global redistribution, gender equity. Global justice mov civil society, oppo to econ glob dom by cor cap. NEOliberalism- denoting
ideo of use ma from state intrusion. Liberism promote free and open society, pow of gov with individ rights limited. JOHN Keynes > Keynesianism, active
state intervene to stab the econ and stim employ.
Ch 5 River Blindness (onchocerciasis) Mercks humanitarianism vindicated decision. Gave pill out for free. Kyosei living and working togthr for common
good Corp soc respons. Control and leg exercise of corporate power. Firm must benefit society. Timeless principle power used fairly. Concrete benefits.
Creates loyal customers. Protects rep. Opponents are far left or right. Managers act lawfully to maximize profits, wealth of society. Social responsibility
Adam smith, wealth of nations. Charity by owners growing. Steven Girard, shipping tycoon.donated to school.Andrew Carnegie, doctrine social
dawinism, explain dynamics of human society, survival of fittest, rich ppl dominate, morally superior. Progressive Era trusteeship, balance, service. Bowen
Soc Respons of Businessman: managers gelt strong public expectations to act in way that went beyond profit maximizing, Arguments for soc respon:
Managers have ethical duty to consider, busin are reseveriors of skill and energy for improve life, corp use power social contract, or lose legitimacy,
enlgihentened self int of bus to improve soc, vol act may head off neg pub attitudes and unwanted reg. Committee of Econ devel 3 con respons inner
circle (econ growth) intermediate circle (exercise econ function with sensitive awareness) Outer circle (bus should assume to improve soc envi
General prin of corp soc respon corps are econ in run profit greatest respon econ benefits. All firms must follow law corp laws provisions, civil and
criminal laws, regulations protect stake, intern laws. Mana act ethc respect law, conform behavior ethical princ. Corp have a duty to correct social imacts
they cause toxic waste soc respon varies with com charac size, marketing, loc. Manag should try to meet ligi needs of multiple stake employees groups
have important claims.Management standard organization can use to achieve certain golas. EMAS rises above legal reui for envir perfor. Reduce
emission, energy use, and waste. ISO
Ch6 Business models. Strategy CSR object a comp can consider the pro it construct in CRS, analyze strengths and weak in its social response Porter and
Kramer suggest essential test worithiness of any add social initiative. strategy must trans into goals and onjec, policies and procedures. Organziation
struct create effective CSR, corp respon. Action planning, sets forth tasks, revising or creating policies, budget, assigning work. Performance goals and
timelines, progress should be measurable. Incentives and Accountability, encourage meeting goals. Pay permotions, rewared or punished based on
sustainable perform. Alignment of strategy and culture. Transparency comp soc strategies struct, proc visible to external obser. Substainability
reporting/development doc and disclosure how corp operates to the goal of develp/ econ growth that meets current needs without social and envi
impacts. Triple bottom line acct fimrs econ soc and evir performance Global Perorting intiative Philanthropy, love of makind, charity carried out by bus.
Ch 7 Bernard Ebbers former CEO of worldcom. Ethics right wrong ethical manag try to do good and avoid doing evil. 4 ethical values influence managers
relgion, cultural experience, philosophy, and law Common ground > reciprocity- mutual help. Religion, managers seek guidance from Bible. Koran source
of ethical inspiration Mohammed everyone shepard, and responsible for what he shepherd of Torah, person who bears respon for any resulting harm.
Philosophy, Socrates asserted virtue. Moral law higher than human law. Realist school of ethics, idealistic thinking of phil, rejects ethical perfection. Takes
position that hunan affaris will be characterized by flawed behavior and ought to be depicted as they are, not as they wish to be. Friedrich Nietzsche
rejected the ideals nice ethics. Master morality great men made own ethical rules. Factors that influence managerial ethics: Leadership strongest
influence on integrity. Managers show by their actions that ethical duties may be compromised. Corp culture values, norms, rituals. First level is
artifafacts, physiall exp of cul and behavior. Espoused values, formal statements of belif and intention. :Codes of ethics, employee handbooks. Tacit
underlying values: inconsistencies explained by hidden influence.How copr manage ethics ethics and compliance program system of structures, pol,
procedures, used by cop to promote ethical behavior, follow laws. Compliance approach teaches employees to meet legal requirements, ethics approach
training employees to make decisions.