Strategic Management -Week 5 Discussion

Woke, Inc. Chapter 8 & 9

By : Brock Webber, Omar Algburi, Timothy Eldridge, Daniel Terronez, & Eddy Arnold

Understanding Chapters 8 & 9 ● Stakeholders and Dictatorship - Chapter 8

○ Stakeholder Capitalism ■ Book and a concept by Klaus Schwab, which states that organizations should serve the

interests of all their stakeholders, and not just shareholders.

● Silicon Valley Leviathan - Chapter 9 ○ Section 230 - was enacted as part of the Communications Decency Act of 1996.

■ 230-1 states that the companies who own these internet platforms, are not responsible for content posted.

■ 230-2 gives these large internet based companies the freedom to censor content on their platforms.

○ Ministry of Truth parallels from 1984 ■ Once we start giving tech companies freedom to censor content on our biggest social

media platforms, this can lead to a normalization of censorship.

Vivek Ramaswamy’s Viewpoint

● “American corporations have become the pawns of foreign dictators even as they portray themselves as paragons of virtue.”

● “Foreign dictators use the moral stature of woke corporations to whitewash their own oppression and also to damage the moral standing of the United States on a global stage.”

● “Companies cultivate the public image that they care about society at large rather than their bottom line while in reality abusing that public trust.”

○ Corporations use a “smokescreen” to portray the needs of the people but secretly only care about their own self interests.

Central Arguments in Chapters 8 & 9

● Chapter 8 - Stakeholder Capitalism ○ Vivek makes the point that this is a strong smokescreen for corporation’s other actions. Capitalism is

competition for profit, regardless. Profit will always be the main goal. Therefore, by implementing initiatives for Woke movements, they can hide more sinister actions. This becomes a foggy smokescreen for the “Silicon Valley Leviathan”.

○ With as much fiscal power these corporations have, they become even more powerful with their influence on societal movements.

● Chapter 9 - Section 230 & The Leviathan’s Slope ○ With Section 230 allowing immunity as well as censorship, there is too much power involved. ○ Vivek makes the argument that once they start censoring content, this can be a slippery slope leading

to more censorship, based on the ideals of whoever backs the funding. This could be dictators, governments, etc.

■ This is where he draws parallels to The Ministry of Truth in George Orwell’s 1984. ○ Although censoring hate-speech looks altruistic on the surface, what can it lead to? Who says what is

wrong/right? Do you trust the agenda of these large corporations, when we live in a capitalist society?

Real-World Applications

Case Study: The Influence of Saudi Arabia and China in American Business

Ramaswamy discusses how foreign states like Saudi Arabia and China exert influence over American companies through significant investments. For example, China's acquisition of AMC Theaters and Saudi Arabia's substantial investments in Twitter are cited as strategic moves to gain footholds within American media and technology sectors .

Twitter and Tencent Partnership

This partnership illustrates China's strategy to control global media narratives, using American companies as platforms to project its power and influence internationally .

Broader Implications

Implications for Business and Society

Ramaswamy warns of the risks associated with foreign influence, particularly from authoritarian regimes like China and Saudi Arabia, in American businesses. This involvement not only affects corporate behavior but also poses a challenge to the integrity of democratic values in the business world .

Consumer Perceptions and Social Justice Movements

The involvement of these foreign entities in American companies might alter consumer perceptions, especially regarding the authenticity and independence of corporate social justice movements. Consumers may become skeptical of the motivations behind corporate actions if they are perceived as influenced by foreign interests with potentially ulterior motives .

Evaluating Ramaswamy's Arguments

Strengths:

● Ramaswamy provided examples of organization allowing investors in China to gain information to US citizens. This included AirBnB, BlackRock, and Google.

● Provided examples of social media companies banning advertisements or posts that do not agree with their stakeholders agenda or beliefs.

● Ramaswamy has strong arguments in both chapters by using real-world and personal examples of how these corporations are influenced by stakeholders. This influence dictates the corporations decisions due to wealth.

Weaknesses:

● In Ramaswamy’s arguments he failed to provide ways organizations or citizens can prevent corporations from allowing the influence from these authoritarian regimes such as China and Saudi governments.

● Throughout the chapters, Ramaswamy has a biased opinion on corporations in America. While most might be true, he does not share other sides of his arguments. He mainly highlights the wrongdoings of corporations. Does not mention these woke capitalists beliefs on their decisions.

Facilitating Discussion

● Do you believe that corporations use social movements as a cover up for their own gain?

● What are ways that corporations can be more transparent with stakeholders and shareholders?

● How can corporations genuinely contribute to social justice without falling into the trap of woke capitalism?

Conclusion

Ramaswamy presents an engaging account that underscores the conflict between corporate rhetoric and actual societal impact in his analysis of Stakeholder Capitalism and the nuances of corporate conduct in the digital sphere. He highlights how businesses may take advantage of social movements and stakeholder interests for their own benefit through perceptive analysis and compelling examples, highlighting the vital necessity of integrity and openness in corporate governance. In an effort to promote a more just and equitable society, Ramaswamy calls for a shift towards authentic corporate social responsibility. This call serves as a poignant reminder of the ethical responsibilities inherent in corporate power, urging businesses to prioritize accountability and genuine engagement with stakeholders.

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