Capitalism And Managers Capitalism - 1598 Words

2. (800 Words for Question Two) John Bogle, in his article Democracy in corporate America, defines capitalism in two different ways, owner’s capitalism and manager’s capitalism. According to Bogle, owner’s capitalism is defined with the idea that purpose of a business or corporation is to make a profit. Manager’s capitalism, Bogle notes, is defined by William Pfaff with the idea that â€Å"the corporation came to be run to profit its managers, in complicity if not conspiracy with accountants and the managers of other corporations† (Bogle, p. 26). These two definitions of owner’s capitalism and manager’s capitalism provide great insight about today’s corporate America. The two previous descriptions that John Bogle provides of owners and managers capitalism show us the true difference between the traditional idea of capitalism, and the more modern idea, as William Pfaff describes. In order for the differentiation to be clear, we must understand what Bogle is saying in his descriptions of the two types of capitalism. First, owner’s capitalism says that the owner(s) of the company have one basic goal, and that is to make a profit, benefiting the owners in a way so to make a return on their investment into the company. So if the idea of capitalism is to make a profit for the company as a whole, then what is manager’s capitalism, and how did it originate? Bogle describes a situation that can commonly seen in corporate America, which describes manager’s capitalism perfectly.Show MoreRelatedCapitalism And Manager s Capitalism Essay800 Words   |  4 Pagesdefines capitalism in two different ways, owner’s capitalism and manager’s capitalism. According to Bogle, owner’s capitalism is defined with the idea that purpose of a business or corporation is to make a profit. Manager’s capitalism, Bogle notes, is defined by William Pfaff with the idea that â€Å"the corpora tion came to be run to profit its managers, in complicity if not conspiracy with accountants and the managers of other corporations† (Bogle, p. 26). These two definitions of owner’s capitalism andRead MoreParadigm Shift of Firms from Capitalism to CSR (Rationale) The integration of social700 Words   |  3 PagesParadigm Shift of Firms from Capitalism to CSR (Rationale) The integration of social responsibilities in business that emerged with the financial capitalists spurred a fierce debate on whether or mot CSR should be included in the corporate objective function. the earliest reference to such criticism appears to be Ghent, who in 1902 criticized this new trend for its similarity to the economic feudalism of the middle Ages, and who argued that CSR was being used as a tool for forestalling public criticismRead MoreCorporate Social Responsibility And Its Effects On Consumers And Brand Equity1107 Words   |  5 Pagesbetween the two. 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There are competing principles that also suggest that the manager must act to maximize the total stakeholder’s interest, which included employeesRead MoreThe Ethics Of The Solyndra Solar Energy Panels1174 Words   |  5 Pageswhether the government should or should not help Solyndra, nevertheless, the government ended up trying to financially guarantee the corporation s security. In doing so, this would mean misuse of public funds since the government has no obligation to capitalism. The government went on to approve a loan to financial guarantee the corporation regardless of the cautionary measures the staff of the administration and financial planners (Weiner, 2012). In 2011, the Committee on Energy and Commerce released