Kennedy journal 5

Kennedy journal 5 - The Corporation Journal Chapter 3 Page#...

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The Corporation Journal Chapter 3 Meiqin Jiang (Vicky) Page# Write your paraphrases/summaries from the reading here: Write your personal opinions and thoughts in response here: p. 60 ¶ 1 According to Bakan corporations are unable to realize or do anything about their unyielding selfishness. Due to their nature they are not capable of stopping their selves from harming other individuals. The only thing that holds corporations back from doing further harm is the law and their selfishness. Yet, these few safeguards are not enough to prevent calamities and destruction like the Enron collapse. Yet, the routine vandalism of society is overlooked and accepted as the norm and economists have dubbed such occurrences as externalities. It seems that Bakan is convinced that corporations are going to and always continue to do harm to society. Even worse is that today corporations don't seem to value anyone at all. Take the case of Enron it hurt the only people who the corporation is responsible in fact the very individuals that gave the corporation power. If this happens and according to the last chapter can happen again, can any corporation be trusted? To what extent will corporation continue this long trend of societal ruination? p. 61 ¶ 1,2 Milton Freidman outlines what an externality exactly is. It is the effect of doing business and what it does to another party that has not even been a part of the transaction. Friedman gives an example of externalities an individuals shirt becomes soiled from smoke emitted from a nearby power plant. Thus, the individual must at their own expense clean their soiled garment. The corporations thus are benefited in that they don't have to spend anything to build better smokestacks or even moving their operations. Externalities are not limited to mere harmless examples like this though. While Friedman admits corporation do a great deal of good their greed and tendency to externalize cots is the root of many of the planet's current issues. Economists have neatly wrapped up all of corporations harm into the term externalities. What is the most surprising is not the term nor the fact that it happens knowing the nature of corporations. The most starting thing is that this is accepted as a matter of fact occurrence. It is like a child constantly doing bad and merely saying time after time, "boys will be boys." Such behavior is not tolerated from real people and since corporations are legal people the same expectations should apply to them. Corporations strived hard to get the benefits of being defined as a person yet, they are rarely held accountable for all the things people are. I believe this is a fundamental flaw in the system. p. 61- 62 ¶ 3,1 Patricia Anderson is an unfortunate victim of corporate externalities. In 1993, on Christmas Day while driving home form church she and her four children were burnt severely because a car rear ended her 1979 Chevrolet Malibu and caused it to burst into flames. Anderson sued General motors on the basis of poor construction. After a long trial it
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This note was uploaded on 09/25/2011 for the course ENG 209 taught by Professor Staff during the Spring '11 term at S.F. State.

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Kennedy journal 5 - The Corporation Journal Chapter 3 Page#...

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