PART 2 CHAPTER OBJECTIVES, OUTLINES, AND CASE NOTES 20
The Study of Business, Government, and Society LEARNING OBJECTIVES Students can learn: How the long history of ExxonMobil illustrates the significance of business-government-society relations. The nature and importance of the business-government-society field. Four alternative models of the business-government-society relationship. The theory of capitalism and the historical development of capitalism. The approach to the field taken throughout the text. SUMMARIZING OUTLINE Chapter 1 introduces the subject and describes how it will be treated. It begins with a story about Exxon Mobil Corporation illustrating how business-government-society relationships affect a company. 1 After some discussion of the nature of the field, including definitions of key terms, four models of the business-government-society relationship are presented. Finally, the chapter sets forth certain approaches and assumptions used in the book. The introductory story is about ExxonMobil. Exxon and Mobil were companies in the Standard Oil Trust broken apart by the Supreme Court’s 1911 antitrust ruling. They were reunited in a 1999 merger. Lee Raymond, ExxonMobil’s CEO, is a strong executive. His actions seem consistent with the values of ExxonMobil’s founder, John D. Rockefeller. 1 As in the textbook, Exxon Mobil is written as two words when followed by the word Corporation, but as one word when the word Corporation is not used. This is the company’s preferred usage. 21 1
ExxonMobil faces major challenges in complex business, government, and social environments. Two defining events in its history are (1) the 1911 breakup and (2) the 1989 Exxon Valdez oil spill. 22
What is the business-government-society (BGS) field and what is its importance? The field is explained as study of the interrelationships among its three elements, each of which is defined. These interrelationships change over time. Business encompasses a broad range of actions, institutions, and operations the purpose of which is to make a profit by providing products and services that satisfy human needs. Government refers to structures and processes that authoritatively make and apply policies and rules. Society is a network of human relations including ideas, institutions, and material things. Ideas are intangible objects of thought. Institutions are formal patterns of relationships that link people together to accomplish a goal. A range of institutions is necessary to support markets. Material things are the tangible artifacts of a society. The BGS field is important to managers, because to succeed they must be responsive to forces in both their economic and noneconomic environments.
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- Spring '16
- John Z
- Business, Standard oil, fur trade, standard oil company, John D. Rockefeller, John Jacob Astor