Chapter 3-Business Power Flashcards
Business power
The force behind an act by a company, industry, or sector.
Legitimacy
The right full use of power. It’s opposite is Tierney, but the exercise of power beyond right.
Surface level of corporate power
The direct cause of visible immediate changes both great and small. Corporations expand and contract hire and fire and they make and sell products.
Deep level corporate power
And interchangeable realm of social networks, time, and physical space, a ram crossed by complex chains of cause-and-effect that converge and interact, shipping and receiving society.
Economic power
The ability of the corporation to influence events, activities, and people by virtue of control over Resources) particularly property. On a deeper level accumulating impact of corporate economic activity has sweeping a fax. For example over many years corporations have created enough wealth trays living standards dramatically in industrialized nations.
Technological power
The ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop.
Political power
The ability to influence government’s.
Legal power
The ability to shape the laws of society. Big corporations have formidable legal resources that intimidate opponents.
Cultural power
The ability to influence cultural values, habits, and institutions such as the family. Example Mother’s Day cards.
Environmental power
The impact of a company on nature
Power over individuals
Exercised over employees, managers, stockholders, consumers, and citizens.
The story of the railroads
Small railroads bring up a 1920s. The initial boom and railroading came admit is century in 1960. Railroad companies needed a lot of money for the time the call for this much money transformed capital markets New York became the center of financial activity. The railroads changed American politics. On the surface, their lobbyists could dominate legislatures. On a deeper level the changes were more profound. Congress it always selected nominees before presidential elections, but now trains bought delegates to the national party nominating conventions, change in the way candidates were picked. At first governmentsencouraged and subsidize railroads.by 1920 more than 8 million cars and 1 million trucks carry passengers and freight. Caused a drop in railroad usage.
Dominance theory
The view that business is the most powerful institution in society, because of its control of wealth. This power is in adequately checked, and therefore, excessive.
Pluralist theory
The view that business power is exercised in a society where other institutions also have great power. It is counterbalanced and restricted and, therefore, not excessive.
Power elite
A small group of individuals in control of the economy, government, and the military. The theory of its existence is associated with the American sociologist C wright Mills.
The four boundaries on managerial power
Government and laws. Social interest groups. Social values. Markets and economic stakeholders.
John D Rockefeller and the standard oil trust
Rockefeller was born in 1839 in New York. In 1863 he invested $4000 and they Cleveland petroleum refinery. He incorporated the standard Oil company of Ohio in 1870. In the late 1870 he made a deal with the railroads called the south improvement plan. In February 1872 the new freight rates were announced. Rockefeller continued absorbing other companies into standard oil. In 1882 standard oil became re-organized as a trust in order to make regulation more difficult.in 1911 the supreme court ordered it’s break up under the Sherman antitrust act holding that it’s monopoly position wasn’t undo restraint on trade that violated the standards of reason.
