Remake of Ch 1 Introduction to Business, Government, Society by Lindsay Castaneda

1870s

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Emergence of large trusts in the United States, including Standard Oil, sparking public concern about corporate power and leading to the populist movement.

1882

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John D. Rockefeller incorporates Standard Oil Trust

1890

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Congress passed the
Sherman Antitrust Act to outlaw its monopoly.

1911

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After years of legal battles, the trust was finally broken into 39 separate companies.

1935

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Congress passed the National Labor Relations Act, protecting and easing union organizing, a colossal defeat for business and a bitter lesson about the social contract.

1950s

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1950s when Exxon was the largest of the Seven Sisters, a group of Western oil firms that dominated global production and reserves, including the huge Middle East oil fields.

1972

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Standard Oil of New Jersey changed its name to Exxon

1989

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Exxon Valdez oil spill.

1990

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The Oil Pollution Act was passed in response to the oil spill. It requires facilities to submit their plan responding to oil spills.

1999

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Exxon merges with Mobil, forming Exxon Mobil.

2003

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Exxon Mobil tries to purchase Yukos Oil Company, a Russian oil company.

2006

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CEO Tillerson did not change strategy in regards to global warming issue.

2008

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Government took large ownerships shares in company and reduced the power of business

John D. Rockefeller (1839-1937)

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Rockefeller was a quiet, meticulous, secretive manager, a relentless com-
petitor, and a painstaking accountant who obsessed over every detail of strategy and
every penny of cost and earnings. He believed that the end of imposing order on a
youthful, rowdy oil industry justified the use of ruthless means

Adam Smith (1723-1790)

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William H. Vanderbilt (1821-1885)

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Edward Harriman (1848-1909)

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Theodore Roosevelt (1858-1919)

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Karl Marx (1818-1883)

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Vladimir Lenin (1870-1924)

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Pope John Paul II (1920-2005)

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Ralph Nader (born 1936)

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R. Edward Freeman (born 1953)

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Rex Tillerson (born 1952)

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Mikhail Khodorkovsky (born 1963)

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Vladimir Putin (born 1952)

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1890: Congress passed the Sherman Antitrust Act to outlaw Standard Oil's monopoly.

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1911: The Supreme Court ordered the breakup of Standard Oil into 39 separate companies.

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1935: Congress passed the National Labor Relations Act, protecting and facilitating union organizing.

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1989: The Exxon Valdez oil spill occurred.

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1990: Congress passed the Oil Protection Act, which included a provision barring the Exxon Valdez from ever entering Prince William Sound again.

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2008: The United States Supreme Court ruled on the Exxon Valdez case, describing the company's lapse in monitoring the captain as "worse than negligent but less than malicious."

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Late 2008: The collapse of financial markets led to unprecedented government actions, including taking ownership shares in large companies, firing the CEO of General Motors, and dictating executive salaries.

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1. The Market Capitalism Model

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The market capitalism model illustrates how businesses operate within a market environment, responding primarily to economic forces while being shielded from direct social and political influences. The market acts as a buffer between businesses and nonmarket forces. Historically, markets were minor institutions as people produced mainly for subsistence. However, during the 1700s, industrialization, division of labor, and expanded trade gave markets a central role in directing the production and distribution of goods through price signals, reshaping economies and human life.

2. The Dominance Model

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The dominance model is a second basic way of seeing the BGS relationship. It represents primarily the perspective of business critics. In it, business and government dominate the great mass of people. In democratic theory, governments and leaders represent interests expressed by the people, who are sovereign.

3. The Countervailing Forces Model

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Recognizes the dynamic interplay among various forces. This model suggests that power is not absolute and shifts between business, government, and public interests. There is a balance of power and public awareness.

4. The Stakeholder Model

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Emphasizes obligations beyond just shareholder interests. Responsible to all stakeholders and considers the interest of all parties affected by corporate actions.

Cost Control and Efficiency

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Centralized, Authoritarian Culture

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Suppression of Competitors

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Standard Oil's Dominance (1882-1911)

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Standard Oil of New Jersey's Legacy (1911-1972)

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Exxon and the Merger with Mobil (1972-1999)

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ExxonMobil in the 21st Century

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