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.

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.

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

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.

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). Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases, or engage in emissions trading if they maintain or increase emissions of these gases. -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.” -The Kyoto Protocol now covers more than 160 countries globally and more than 60% of countries in terms of global greenhouse gas emissions. 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. -2 ND 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