CHAPTER 4 DISCUSSION QUESTIONS

1) In 1933, FDR created the New Deal, aimed to strengthen government's control of what?2) What American corporation provided the Nazis with tabulation machines used by them to track records in their extermination & slave-labor camps?3) What was passed by Congress in 1952 to ensure coal mine safety?4) How did "new social regulation" curb corporations power & freedom?5) What fuel the political system & are a core strategy in business's campaign to influence government (Look for it. It's in the chapter.)?

IN AMERICA’S ECONOMY, WHO HOLDS THE MOST POWER?

THE CONSUMER

WHAT POWER(S) DOES THE CONSUMER POSSESS?

1) PRICING OF PRODUCTS/SERVICES

• PRICE NEEDS TO FIT THE REALITIES OF THE MARKETPLACE

-THE VALUE OF A PRODUCT/SERVICE IS DETERMINED BY WHAT SOMEONE IS WILLING TO PAY FOR IT.

2) FINANCIAL SUCCESS OF ORGANIZATIONS

•IF WE (CONSUMERS) DON’T BUY, THEY (CORPORATIONS) DON’T MAKE MONEY.

2011 MLB ATTENDANCE STATISTICS

AVG: 45, 027

(103.5% CAPACITY)

AVG: 20, 068

(39.9% CAPACITY)

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TOTAL % STADIUM CAPACITY

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3, 765, 807

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1, 394, 812

WHY DO WE (CONSUMERS) SO INFREQUENTLY EXERT OUR POWER?

WHY DO WE (CONSUMERS) SO INFREQUENTLY EXERT OUR POWER?

CLIP: CONSUMERISM IN AMERICA

CONSUMERISM

“A SOCIAL & ECONOMIC PRINCIPLE THAT IS BASED ON THE SYSTEMATIC CREATION & FOSTERING OF A DESIRE TO PURCHASE GOODS/SERVICES.”

*CORPORATIONS MAKE THEIR LARGE PROFITS BY CREATING & FOSTERING A DESIRE FOR CONSUMERS TO PURCHASE MATERIAL ITEMS RATHER THAN NECESSITIES.

MATERIALISM:

-IN PHILOSOPHY: “THE THEORY THAT PHYSICAL MATTER IS THE ONLY REALITY.”

-IN BUSINESS: “THE THEORY THAT WORLDLY POSSESSIONS CONSTITUTE THE GREATEST GOOD & HIGHEST VALUE IN LIFE.”

CONSUMERISM

American consumerism has seen a shift away from values of community, spirituality, and integrity, and toward

competition, materialism and disconnection.

•PRE-1990’S: THE MOST FREQUENT REASONS FOR ATTENDING COLLEGE GIVEN BY STUDENTS WERE:

-BECOMING AN AUTHORITY IN A FIELD

-HELPING OTHERS IN DIFFICULTY

•1990’S-PRESENT: THE MOST FREQUENT REASON FOR ATTENDING COLLEGE GIVEN BY STUDENTS IS:

-MAKING A LOT OF MONEY

Capitalism's protagonists and players are the new high priests of our day. Industry and government

have become intertwined to the extent that it's hard to tell when one ends and the other begins.

But citizens are resisting and protesting their dissent to the centralization of power in corporate

hands. The corporation has responded by enacting programs of corporate social responsibility.

Are CSR plans just a tactic by corporations in response to consumer pressure?

THE MYTHS OF CSR

1) THE ETHICAL CONSUMER WILL DRIVE CHANGE.

-STUDIES SHOW THAT MOST CONSUMERS ARE MORE CONCERNED WITH OTHER VARIABLES: PRICE, QUALITY, BRAND.

2) THERE WILL BE A COMPETITIVE RACE TO THE TOP OVER ETHICS AMONGST BUSINESSES.

-MANY TIMES BUSINESSES WILL BE ABLE TO CAPITALIZE ON WELL INTENTIONED EFFORTS WITHOUT NECESSARILY HAVING TO CHANGE THEIR BEHAVIOR.

EXAMPLE: PFIZER.

3) IN THE GLOBAL ECONOMY, COUNTRIES WILL COMPETE TO HAVE THE BEST ETHICAL PRACTICES.-MOST FOREIGN COUNTRIES LIMIT THEIR INSISTENCE ON STRINGENT COMPLIANCE WITH HUMAN RIGHTS OR ENVIRONMENTAL STANDARDS IN ORDER TO ATTRACT CORPORATIONS.

CLIP 21: DEMOCRACY LTD.

“THE LAW’S (GOVERNMENT) ABILITY TO PROTECT PEOPLE & THE ENVIRONMENT FROM CORPORATE

HARM HAS SUFFERED.”

WHY?

1) BUSINESS OPPOSITION TO REGULATION

2) LOBBYING

3) POLITICAL CONTRIBUTIONS

4) SOPHISTICATED P.R. CAMPAIGNS

FDR’S NEW DEAL

-PACKAGE OF ECONOMIC PROGRAMS (1933-36) INSTITUTED TO COUNTERACT THE NEGATIVE EFFECTS OF THE GREAT DEPRESSION (OCTOBER 1929).

-THE MAIN GOALS ARE KNOWN AS THE 3 R’S:

1) RELIEF

-UNEMPLOYED AMERICANS (FARMERS).

2) REFORM

-BUSINESS & FINANCIAL INSTITUTIONS

3) RECOVERY

-THE ECONOMY

WHY DID CERTAIN CORPORATE EXECUTIVES OPPOSE FDR’S “NEW DEAL?”

1) AIMED TO REPLACE “INVISIBLE HAND.”

-SELF-REGULATING NATURE OF THE MARKET PLACE

2) AIMED TO STRENGTHEN GOV’T CONTROL ON BIG CORPORATIONS.

3) CURBED CORPORATIONS FREEDOMS & POWERS.

4) BELIEVED IT WOULD UNDERMINE AMERICAN CAPITALISM.