The Economy & Work

Question 1

Features of Corporations

Answer 1

1) Legal person, not a group

2) Legally required to maximize profit and act in shareholders best interests

Question 2

Why is Profit Maximization Significant?

Answer 2

• Individual’s best intentions, constrained by institution - individual role/status defers from institutional one
• Shows that “the market” cannot solve social problems, as profit is number one concern

Question 3

Corporations as Institutions

Answer 3

• dominant institution, like church in the past
• work together toward common end ; manipulation of outside population for profit gains
• 14th Amendement applies (life, liberty etc.)
• Growth of corporations = Civil War and Industrial Revolution
• Stock- market = no time for reflection or ethics

Question 4

Externality

Answer 4

• third party is not aware of transaction involving third party: “let someone else deal with it”
• problem passed onto the public

Question 5

Harm to Workers

Answer 5

• layoffs, union busting, factory fires etc.
• self-centred motifs = widespread benefit (baker making bread)
• low cost labour then once wages get too high/ workers aren’t desperate enough, corporation moves

Question 6

Harm to Animals

Answer 6

• destruction of habitats and farming land and animal experimentation
• Monsanto BST to increase milk production in cows
• antibiotics in food lead to antibiotic resistant bugs and illnesses ; can lead to death
• Agent Orange - Vietnam ; birth defects in locals and American veterans ; only reason Monsanto paid - Americans affected

Question 7

Harm to Environment

Answer 7

• clearcuts, CO2 emissions and nuclear waste
• not a commodity, therefore no one cares
• EVERY living system and support system of life is in decline

Question 8

Are Corporations Psychopaths?

Answer 8

• fit criteria ; no regard for others, incapable of feeling guilt, unable to conform to social norms and lawful behaviours etc.
• even people within corporations cannot control them

Question 9

Manufactoring Consent

Answer 9

• corporate message spread through media outlets and “think tanks”
• EX. Fraser Institute = “think tank” that creates flak around media reports on science that do not favour “business thinking”
• “think tanks” NOT peer reviewed

Question 10

Market Solution to Clean Air?

Answer 10

• pollution permits, turn air into commodity
• is air not valuable enough? ; why should someone profit form pollution?
• why not enact stronger antipollution laws?
• market solutions CANNOT address social problems

Question 11

Corporations Give Structure

Answer 11

• provide people with opportunity to succeed ; be a “good consumer” ; give purpose
• like previous institutions (church, school, army etc.) “good student/soldier” etc.