1. In essence to the response of this question tying in how Standard Oil had changed society with references to the levels and spheres of corporate power discusses in the chapter, I would say that the power of economic, cultural and political of the Standard Oil has led to the big changes to the society. Based on the text book mentioned that “Rockefeller’s company was capitalized at 70$ million and produced 90 percent of the nation’s refining output.” This has shown how strong the economic power of Standard Oil is. The Standard Oil Company built the facilities, employ workers. At a deeper level it can make fuels lead to the growth of auto industry. Aside from this fact as well it can boost up the American economy. Standard Oil’s economic power was not exercised in keeping with the social contract of Rockefeller’s era.
From the text it’s very obvious that Rockefeller against the social contract, this can be shown when Rockefeller was practicing “power beyond right” .In additional he used those unethical method to eliminate his competitor from the oil industry. For an example “He made them ‘sweat’ and ‘feel sick’ until they sold.” This statement has clearly shows how in respect Rockefeller used aggressive ways to fight with the competitor for his own interest. JD I feel enacted these actions to keep on the upward slope in remaining above his competition in secretive ways without them knowing. This was a smart business decision to keep concealed all his assets so as the competition would not know what he was fully capable of in maintaining his stance in the monopoly business while at the same time changing the way society was changed due to the presence of Standard Oil.
2. From the case, Standard Oil had exceeded the limits of business power. Business power can be defined as the force behind an act by a company, industry, or sector. Rockefeller used his business power to eliminate his competitors and also prevent his competitors from getting the oil barrels in the market so that he can control the oil industry. Business power is used for convert resources efficiently to meet the need of goods given by the society to the company, but Rockefeller was using it in the wrong ways. Dominance theory is the best theory that can be applied on Standard Oil Company in this chapter. Standard Oil Company was more emphasizes on the growth of their asset rather than the welfare of the society. According to the dominance theory, business abuses the power its size and wealth confer.
Rockefeller monopolized most of the oil businesses in the U.S. From the way how Rockefeller monopolized the oil industry, reduces the competition and then harms his competitors is the best way to describe the dominance theory. The pluralist theory would in my opinion not be as applicable to this business example due to this simple reason it’s on the other side of the spectrum where here, this theory focuses on multiple businesses that have power diffused through them. The Standard oil company is a classic example that is looked at a monopoly that focuses on the one and only company itself in being the top company and focusing on total wealth and having overriding power in and of itself. This is how the dominance theory best illustrated Standard Oil and how the company illustrated and utilized the limits of power.
3. Rockefeller did act unethically by the standards of his day. This is clearly shown where he ordered his marketing agents to destroy independent suppliers, so that he can control over it. Aside from this aspect, it’s understood to me that Rockefeller bribed his competitors’ employees to pass the confidential information to his company so that he know what type of strategies he should apply to defend his competitor. Rockefeller was using unethical methods to dominate the oil industry and make Standard Oil become the biggest oil company in the U.S. When a person is become rich he or she wishes to be richer, this same goes to Rockefeller. Rockefeller could be a devout Christian but at the same time he could be a monopolist.
When it comes to business Rockefeller can be a very realistic and cruel businessman. When the manager leaked information to the press, he immediately ordered his secretary to inform the manager he does not need the services of the manager after the close of the month. By the way Rockefeller thinks that he was doing the right thing. Besides that he was alert all the time to make sure that there is no competitor can dominate his oil industry. In additional from the point stated that he read bible daily has shown he is a devout Christian. One thing he did not realize was that exercising the unethical tactic to achieve his goal, was a big mistake that lead to the decreasing of moral values for him.
I believe there are some good grounds for the argument of contradiction between his personal and business ethics. Rockefeller considered himself achieved his goal by using unethical tactics are right. The reason of eliminating the competitor from the oil industry is to protect him from any other harm and to maintain his financial stability. Overall I think a person in this type of power and duties he has taken on can almost lead a double like being a sacred Christian and the seeming of an everyday man in his personal life to being in some ways a cruel businessman and sly ways of operating a business to ensure he is on the full ride to the up and up.
4. In the utilitarian sense of accomplishing the greatest good for the greatest number in society, the Standard Oil Company was a net plus. From how Rockefeller expanded the Standard Oil Company in the beginning, the profit was increasing from time to time. JD was a man who dominated the oil industry and controls the price of oil made him gained a lot of profit. Besides that the Standard Oil Company was the only company produced 90 percent of the nation’s refining output. Another point would be the rebates given by the shipper to Rockefeller had become the reason lead the Standard Oil Company increase in their profitability. The Standard Oil Company meets its responsibilities to society.
The expensive price of candle made most of the American could not afford to buy, and by that time the main product which is illuminating oil had changed the living lifestyle of the people. Previously most Americans went to sleep with darkness, but when the good quality of illuminating oil was introduced and the price was affordable and safe to be used, most Americans could own it. This can be viewed as one of the examples the standard Oil Company meet its responsibilities to society. Although Rockefeller had monopolized the oil industry by eliminating his competitor but he still show the concern to the society, this can be seen when he did not increase the illuminating oil to gain more profit, he set the illuminating oil in a reasonable price so that everyone could afford this new type and way of living that set a mark in history for how people’s lives changed due to this.
Overall I feel that in respect to all of his actions in relation to how he performed utilitarian duties due to him seeing more importance on helping out all of the country to make these oils readily available with low prices as opposed to high prices. JD was concerned about the almighty dollar just goes to prove to his through his history that his company had balanced perfectly to meet the responsibilities it sought to attend to of society and see the greater good in his actions to help others.
5.It is very obvious we can see that the strategies practiced by Standard Oil that in turn had unfortunately encouraged unethical behavior through its operations. Rockefeller was a very unethical and ruthless businessman, from the way he eliminated his competitors and makes them into bankrupt for his own benefits. It’s just simply amazing to me maybe because I have good ethical senses of doing things but how JD Rockefeller could even let others bribe him to lead to the misroute of shipments.
Rockefeller’s vision can be fulfilled using “nicer” tactics. By using “dirty” tactic sit can see growth of the Standard Oil Company quickly, but using “nicer” tactics it might take time to see the result. As a ethical businessman it is very important to use “nicer” tactics to dominate competitors. When a “nicer” tactics are applied on the competitive strategies it does not harm other competitors. By paying the shipment cost below the rates charged to his competitors were unfair. The victory of Rockefeller should be achieved by using “nicer” tactics not “dirty” tactics in its business operations.
Overall after examining these work practices that Standard Oil had sought to pursue just once again shows us readers through the annals of history the unethical behavior in his strategies. I think he personally was a great man outside of his work world and life as shown to us how he read the bible every day or in the beginning of his operations of Standard Oil, he had seemed to be a great person to work with. JD and his company had originally displayed his utilitarianism actions to helping America out with affordable lamp oils and getting America quickly revolutionized as opposed to making a buck off everyone.
Over the years however he had developed this almost fixation with monopolizing anyone whom he saw as a competitor or anyone who crossed his paths he sought to pursue any way he saw forth to climb above them even if it meant conducting unethical business practices and behavior. It’s just amazing how you can read about someone and think and have one opinion of them such as JD and tying in the utilitarianism theory to his life and business until you read history writings such as this case that will reveal and unravel his unholy way of business operations and overall am really glad that I had the opportunity to read this article so I could learn more about his life.
