Ch 3.2 Business Power - Pluralist Theory

What legitimizes business power according to the Social Contract?

Business power is legitimate when exercised within an implicit contract that serves the common good.

What philosopher discussed the concept of legitimacy in government?

John Locke, who stated that tyranny is the opposite of legitimacy.

What constitutes 'power beyond right' for corporations?

When they violate social values, endanger the public, or act illegally.

What are the main restraints on business power according to Pluralist Theory?

Market forces, government and laws, social values, and the influence of stakeholders.

What is the Countervailing Forces Model?

It suggests that businesses must interact cooperatively to achieve their objectives.

How does market competition restrain dominant power?

It diffuses power among competitors, requiring them to offer competitive pricing and innovate.

What antitrust lawsuit was filed against Google in 2023?

The DOJ and 38 state attorneys general sued Google for monopolistic conduct, accusing it of maintaining monopolies through anti-competitive practices.

What remedies did the DOJ propose in the Google antitrust case?

Divestiture of Chrome, a ban on search-related payments, data sharing with competitors, and review of future investments.

What accusations were made against Amazon in the 2023 antitrust lawsuit?

Using anti-competitive tactics to maintain market dominance, prioritizing its own products, and penalizing third-party sellers.

What significant achievement did the United Auto Workers (UAW) accomplish in 2023?

Secured a historic contract with the Big Three automakers, resulting in significant wage increases and improved benefits.

What was the outcome of the National Consumers League's lawsuit against Starbucks?

Allegations of false advertising regarding ethical sourcing and documented abuses at suppliers.

What are the four boundaries on managerial power?

Legal, social, ethical, and operational boundaries.

What legal action did Johnson & Johnson face in 2024?

Legal action for violating antitrust laws through price-fixing with competitors.

What backlash did a Meta executive face in 2023?

Backlash for making insensitive comments, leading to an apology and sensitivity training.

What unethical behavior was discovered at Wells Fargo in 2023?

Manipulation of financial reports to inflate earnings, resulting in an internal investigation and executive resignation.

What violation occurred at Siemens in 2024?

A manager bypassed company protocol for a personal deal, leading to termination and a review of internal controls.

How does the Constitution encourage pluralism?

By guaranteeing rights for individuals to form associations and express interests freely.

What are the democratic values that encourage pluralism in the U.S.?

Natural rights and equality, without entrenched deference to an aristocracy or wealth.

What demographic factors encourage pluralism in the U.S.?

A large population, wide geography, diverse occupations, and a mixture of diverse interests.

What was the Panic of 1907 and its significance?

A financial crisis that led to the creation of the Federal Reserve to prevent private individuals from having financial control.

What question does the case of J.P. Morgan's bailout raise?

Is it an example of dominance or pluralism, and what reasoning supports your answer?