Week two discussion 1-What might be the dilemmas corporate power presents in a democratic society. 2-While analyzing the reasons for mergers and acquisitions; how do they affect the relationship between business and its stakeholders. 1 Corporations exist for the purpose of making profit. This purpose often compels corporations to do whatever in their power, within the legal limits, to maximize their profits. Since corporations are not literally a person, by nature they are amoral actors in any specific society, and are bounded only by laws of the land in which they operate. Since it is the purpose of corporations to maximize profits, it is fair to say that corporations are often immensely wealthy entities, with massive amounts of cash that they can use to manipulate laws in their favor. Legislation in the United States allows corporations to influence government officials and law makers to create and implement laws that are in their favor, which is one of the reasons corporations in the United States have grown immensely and are wealthier than ever. From a corporation's point of view this behavior is complete acceptable and/or even encouraged, however, it puts the general public at a disadvantage, and often even in danger. One of the examples of lobbying the United States that comes to mind is the lobbying by the National Rifle Association (NRA). The National Rifle Association has managed to influence the congress to keep gun laws in their favor, or even create new laws that propagate the prevalence of guns among the general population. Such as the Texas law that allows anyone to carry a weapon inside a college campus. The University of Texas president said that he hates guns on campus, but would have to allow it, because the laws allow it. Even the president's appeal to congress for gun reforms has fallen on deaf ears because the NRA is so powerful. Similarly other corporations influence the law makers to create laws that help them make a greater profit, not considering the effect of that on the society or the general population. Therefore, one of the biggest dilemmas is whether to allow corporations to influence law makers to make laws in their favor, and/or to allow them to donate money to presidential campaigns or candidates, in hopes that that will win and be on their (corporation's) side when in power. To be a truly democratic society, a corporation must not have any influence over the government, and laws to prevent that from happening must be implemented. 2 Mergers or acquisitions can effect various parties, such as banks, customers, government, suppliers etc., for which, any such event requires thorough analysis, to determine how and to what degree will they be effected. One of the most important stakeholders that gets effected by mergers is the employees of the organization. Many are often laid off because they aren't needed anymore. When two corporations merge, certain instances of redundancy occurs, which often leads to layoffs. While layoffs are not always avoidable, they must at least be made aware of it as soon as possible, and proper severance packages must be provided. The rest of the employees must be provided the required training to adjust into the new environment, and prepare them for an organizational culture shift. Depending on what kind of merger or acquisition it is, it can either develop a strong relationship between the employees and company, or the employee might not fit in with the new culture, might not agree with certain policies of the organization and may leave the organization, or may continue to work halfheartedly, which would reduce their performance. Another important group of stakeholders is the creditors. Mergers and acquisition often creates issues between the organization and the creditors, and in-turn the relationship with the creditors. References http://debatewise.org/debates/139-corporations-are-a-threat-to-democracy-and-society/ http://www.huffingtonpost.com/news/guns-on-campus/ http://www.americasjobexchange.com/employer/employer-articles/business-mergers-andemployees