Strategic Management Chapter 1 analysis
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IntroductionChapter1.pptxIntroduction & Chapter 1: An Analysis Exploring the Prestige and Goldman Rule of 'Woke, Inc.' by Vivek Ramaswamy
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Overview
The Prestige
Magicians utilize 3 different steps when performing.
The Pledge: Show something ordinary like a bunny.
The Turn: Make the ordinary, extraordinary. In this case, make it disappear.
The Prestige: The final emphasis. In this case, bringing the bunny back after it disappears.
Context with corporate America and Social Justice narratives:
The Prestige: Pretend like you care about something other than profit and power, precisely to gain more of each.
The Goldman Rule
Definition: “He who has the gold, makes the rules.”
Context with corporate America and Social Justice narratives:
The concept of stakeholder capitalism is being utilized by CEO’s and large corporations.
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Vivek Ramaswamy’s Viewpoint
With Vivek’s background of finance, he makes the argument that large corporations are exploiting social justice narratives for financial gain.
Capitalism is for financial gain. The underlying goal will always be more profit.
Companies are disguising this goal by aligning with social movements. This causes consumers to purchase products, due to reasons outside of the quality of the product itself.
His fear is that this will lead to companies making ethical decisions on behalf of a society, since they are allowed to fund lobbyists.
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Central Arguments in the Intro & Ch. 1
Introduction
Vivek paints a picture of his definition of Woke.
States that companies are critiquing themselves, in a “jiu-jitsu” move to increase financial gain.
Corporations are standing-up for Woke causes, when their products have nothing to do with the cause.
Chapter 1
Standing up for social causes, while being able to fund politicians, is a slippery-slope
He believes this will lead to corporations deciding what is “right/wrong”.
Multi-Stakeholder Capitalism
Companies are beginning to stand-up for woke causes that have little to nothing to do with the actual product
“When they create a system in which business leaders decide moral questions, they open the floodgates for all their unscrupulous colleagues to abuse that newfound power. And there are far more CEOs who are eager to grab money and power in the name of justice than there are CEOs who are agnostic to money and power and care only about justice.”
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Real-World Applications
The chapter gives us an example from Coca-Cola. They have recently invested a chunk of funding into a campaign combatting social-justice.
Vivek’s argument is not on whether the social-justice issue being supported is valid or not, it is on the idea that a soda company should focus on their product. Back to the previous point, he believes this is a slippery-slope to corporations deciding ethics.
If Coca-Cola cared altruistically about its consumers, they would take a look at their ingredients, specifically its sugar content. They could aim to make their drink healthier.
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Broader Implications
Ramaswamy believes most CEOs are not altruistic in their wants and social alignments. Hence, his idea of the prestige.
If this is the case, large billion-dollar corporations will dip their hand in social causes.
Politicians (potential lawmakers) are allowed to take campaign money from lobbyists.
When corporations stand for a social cause (for the sake of profit), they will fund lobbyists in alignment with their cause.
Vivek believes this gives companies too much power, as they can essentially decide which ideas gain steam, due to funding.
If companies can make profit from standing for a social cause, they will feel more and more inclined to do so.
“I think they’re overstepping their authority by trying to affirmatively enact their own conception of the good by using their market power.”
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Evaluating Ramaswamy’s Arguments
The Goldman Rule:
“He who has the gold, makes the rules.”
As lobbyists can fund the campaigns of potential lawmakers, corporations can fund lobbyists.
When dealing with billion-dollar corporations, I believe his points have merit.
“And there are far more CEOs who are eager to grab money and power in the name of justice than there are CEOs who are agnostic to money and power and care only about justice.”
I feel inclined to agree with this. With the goal of capitalism being profit, why would that mysteriously disappear with this much money and power at stake?
When it comes to initiatives these corporations are following, he didn’t give examples of how they are mis-funded.
For example, funding a “Going Green” initiative doesn’t mean the money is nonsense. If the environmental organization being funded has real impact, this is not entirely negative.
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Facilitating Discussion
Is “Woke” culture a slippery slope, when it comes to corporations funding lobbyists? Why or why not?
Are there examples of organizations donating to causes, for altruistic reasons? Is there any way to tell?
Would you purchase a product from a company, merely based on their social-alignment? Why or why not?
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Concluding Thoughts
Dipping a hand into social causes, can be a problem when it comes to billion-dollar companies. This can eventually cause them to make decisions on behalf of a society.
“It’s about business elites telling ordinary Americans what they’re supposed to do and how they’re supposed to think.”
We see this with Hollywood, shows, and movies right now. Whether we agree with the causes or not, it is evident political stances and messages are inserted into content.
The further we dive into the text, the more examples, arguments, and counter-narratives Vivek will give. I am intrigued to know where this progresses to.
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Expand Your Understanding
https://www.opensecrets.org/federal-lobbying
For financial figures on lobbyists and government officials
Information on lobbying, from Emory University.
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References
Coca-Cola. Taking a stand. Taking a Stand for
Social Justice. https://www.coca- colacompany.com/social/diversity-and-inclusion/taking-a-stand
Emory University. Lobbying and Political Activities.
https://finance.emory.edu/home/financedivision/accounting/tax/lo bbying-political- activities.html#:~:text=Lobbying%20is%20generally%20described%2 0as,opinions%20of%20the%20general%20public.
Lobbying Data Summary. OpenSecrets.
https://www.opensecrets.org/federal-lobbying
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