1. CHAPTER 2 DISCUSSION QUESTIONS
1) Business leaders today say their companies care about more
than profit & loss, that they feel responsible to society as a whole,
not just to their shareholders. Do you agree/disagree? Why?
2) Thanks to Pfizer, how is the Flushing Avenue subway station
safer?
3) What is "capitalism with a conscience?"
4) Executives who choose social & environmental goals over
profits--who try to act morally--are, in fact, immoral. Why?
5) Explain the Dodge v. Ford case.
6) What does the "best interests of the corporation" principle
state?
7) What is the goal of the Kyoto Protocol?
8) What oil-drilling site do astronauts report being able to see from
space at night?
9) What has made Anita Roddick's business, the Body Shop,
unusual?
10) What does it mean to diagnose a corporation as psychopathic?

2. “BUSINESS LEADERS TODAY SAY THEIR COMPANIES
CARE ABOUT MORE THAN PROFIT & LOSS, THAT THEY
FEEL RESPONSIBLE TO SOCIETY AS A WHOLE NOT JUST
THEIR SHAREHOLDERS.”
AGREE/DISAGREE

3. CAUSE-MARKETING
“A TYPE OF MARKETING EFFORT THAT PROMOTES SOCIAL
& OTHER CHARITABLE CAUSES.”
-EFFORTS BY A FOR PROFIT BUSINESS THAT BENEFIT A
NON-PROFIT ORGANIZATION.

4. “LIVESTRONG”
-CAMPAIGN LAUNCHED IN MAY 2004 TO HELP THE “LANCE
ARMSTRONG FOUNDATION.”
-NIKE MANUFACTURES THE BRACELETS & HOPED TO
RAISE $25 MILLION.
-GOAL WAS REACHED IN 6 MONTHS.
-OVER 80 MILLION HAVE BEEN SOLD TO DATE.
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LIVESTRONG COMMERCIAL

5. “SAVE LIDS TO SAVE LIVES”
-YOPLAIT’S CAMPAIGN IN SUPPORT OF THE “SUSAN G.
KOMEN FOR THE CURE.”
-YOPLAIT PACKAGES SPECIFIC PRODUCTS WITH A PINK
LID THAT CONSUMERS TURN IN, & IN TURN YOPLAIT
DONATES 10 CENTS FOR EACH LID.
YOPLAIT COMMERCIAL

6. “PRODUCT RED”
-ONE OF THE LARGEST CAUSE-RELATED MARKETING
CAMPAIGNS TO DATE.
-CREATED TO SUPPORT “THE GLOBAL FUND.”
-FIGHTS AIDS, TUBERCULOSIS, MALARIA
-PARTICIPATING COMPANIES:
-DELL, APPLE, STARBUCKS, GIORGIO ARMANI, THE
GAP
PRODUCT RED COMMERCIAL

7. “BREWING THE AMERICAN DREAM”
-CAMPAIGN STARTED IN JUNE 2008 BY JIM KOCH, FOUNDER OF
BOSTON BEER COMPANY TO HELP SMALL BUSINESSES.
-MICROLOANS: FOOD & BEVERAGE SMALL BUSINESS OWNERS
CAN APPLY FOR CAPITAL NEEDED TO START OR EXPAND A
BUSINESS.
-SPEED COACHING: SMALL BUSINESS OWNERS CAN MEET
BOSTON BEER COMPANY EMPLOYEES FOR ADVICE ON
MARKETING, ACCOUNTING, ETC.
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JIM KOCH INTERVIEW

8. CAPITALISM WITH A CONSCIENCE:
-BUSINESS PRACTICE COINED BY FORMER HARVARD
BUSINESS SCHOLAR IRA JACKSON.
-”LOOKING BEYOND PROFIT TO TRY & FUNDAMENTALLY
CHANGE, FOR THE BETTER, THE SYSTEM THE BUSINESS IS
WORKING WITHIN.”
-WILLIAM FORD, JR: “CORPORATIONS COULD BE &
SHOULD BE A MAJOR FORCE FOR RESOLVING
ENVIRONMENTAL & SOCIAL CONCERNS IN THE 21ST
CENTURY.”

9. CAPITALISM WITH A CONSCIENCE
MISSION STATEMENT
“TO DEDICATE OUR BUSINESS TO THE PURSUIT OF SOCIAL & ENVIRONMENTAL
CHANGE.”
-MANY OF THE INGREDIENTS USED IN ITS PRODUCTS (BRAZILIAN NUTS FROM THE
AMAZON) ARE “COMMUNITY TRADED.”
COMMUNITY TRADED:
-GOODS ARE TRADED FAIRLY & AT A PRICE WHICH SUSTAINS THE PRODUCERS OF
THE PRODUCTS (FARMERS).

10. CAPITALISM WITH A CONSCIENCE
“IF WE REALLY WANT TO IMPROVE THE CONDITIONS OF
AMERICAN CITIES, WE BUSINESS PEOPLE HAVE TO TAKE
RESPONSIBILITY.”
-TOM KLINE, SENIOR VP, PFIZER
-INSTALLED SECURITY CALL BOXES IN SUBWAY STATION.
-DONATES ZITHROMAX TO AFRICAN COUNTRIES TO
PREVENT TRACHOMA.

12. KYOTO PROTOCOL
-The Kyoto Protocol is an agreement made under the United Nations Framework
Convention on Climate Change (UNFCCC).
-The objective is the "stabilization of greenhouse gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic (caused or
produced by humans) interference with the climate system.”
-37 countries (NOT THE US) have committed to reducing their emissions of
carbon dioxide and five other greenhouse gases.
-This treaty expires in 2012, and international talks began in May 2007 on a future
treaty to succeed the current one.

13. “EXECUTIVES WHO CHOOSE SOCIAL & ENVIRONMENTAL
GOALS OVER PROFITS--WHO TRY TO ACT MORALLY--ARE,
IN FACT, IMMORAL.”
WHY?

14. BEST INTERESTS OF THE CORPORATION PRINCIPLE
-A FIXTURE IN THE CORPORATE LAWS OF MOST COUNTRIES.
-STATES THAT CORPORATE DECISION MAKERS SHOULD
ALWAYS ACT IN THE BEST INTERESTS OF THE CORPORATION
(OWNERS).
-FORBIDS ANY OTHER MOTIVATION* FOR CORPORATE DECISION
MAKERS ACTIONS.
*ASSIST WORKERS, IMPROVE THE ENVIRONMENT,
HELP CONSUMERS SAVE MONEY.
“CORPORATE SOCIAL RESPONSIBILITY IS THUS ILLEGAL, AT
LEAST WHEN IT IS GENUINE.”
CLIP 13: LIKE A GOOD NEIGHBOR

15. DODGE
VS
FORD

16. CASE:
1916:
-JOHN FRANCIS DODGE & HORACE ELGIN DODGE OWNED 10% OF THE FORD MOTOR COMPANY.
-2ND LARGEST NUMBER OF SHARES NEXT TO HENRY FORD.
-HENRY FORD:
-"My ambition is to employ still more men, to spread the benefits of this
industrial system to the greatest possible number, to help them build up their lives and
their homes. To do this we are putting the greatest share of our profits back in the
business."
-FORD WANTED TO END SPECIAL DIVIDENDS FOR SHAREHOLDERS IN FAVOR OF REINVESTING
MONEY INTO NEW PRODUCTION PLANTS. THIS WOULD LONG-TERM ALLOW FORD TO:
-PRODUCE MORE CARS.
-CUT COSTS & PRICES OF CARS.
-EMPLOY MORE EMPLOYEES.
-DODGE BROTHERS:
-ARGUED THAT A CORPORATION’S PROFITS BELONG TO SHAREHOLDERS & THAT
FORD HAD NO RIGHT TO GIVE THEIR MONEY AWAY TO CUSTOMERS, NO MATTER HOW
GOOD HIS INTERNTIONS.

17. JUDGMENT:
A FOR PROFIT BUSINESS CORPORATION’S MAIN
OBJECTIVE IS TO MAXIMIZE PROFIT FOR ITS
STOCKHOLDERS, NOT THE COMMUNITY OR ITS
EMPLOYEES.

18. “AS A PSYCHOPATHIC CREATURE, THE CORPORATION
CAN NEITHER RECOGNIZE NOR ACT UPON MORAL
REASONS TO REFRAIN FROM HARMING OTHERS.”
WHAT DOES IT MEAN TO DEFINE CORPORATIONS AS
“PSYCHOPATHIC?”
CLIP 5: CASE HISTORIES

19. PSYCHOPATHIC:
-HAVING AN ANTISOCIAL PERSONALITY DISORDER.
PSYCHOPATHIC TRAITS:
• CALLOUS UNCONCERN FOR THE FEELINGS OF OTHERS.
• INCAPACITY TO MAINTAIN ENDURING RELATIONSHIPS.
• RECKLESS DISREGARD FOR THE SAFETY OF OTHERS.
• DECEITFULNESS: REPEATED LYING & CONNING OTHERS
FOR PROFIT.
• INCAPACITY TO EXPERIENCE GUILT.
• FAILURE TO CONFORM TO SOCIAL NORMS WITH RESPECT
TO LAWFUL BEHAVIORS.