capitalism’s reputation

Section 1: Fill-in-the-blank 1. [----------] Which approach to liability completely relieves the corporation of responsibility? 2. [----------] Who of the authors you read argues that capitalism’s reputation is in bad shape and could be rehabilitated if capitalism were oriented around the common good? 3. [-----------] What term is used to describe an exchange in which both parties to an exchange enter it voluntarily and are fully informed of its terms? 4. [-------------] Which classical philosopher-economist argues that human nature goes beyond self-interest to include love and concern for others and the approval of society? 5. [-------------] Which approach to liability allows a corporation to be held responsible even if its product is not defective? Section 2: True/False 1. The strict liability framework is equivalent to the buyer-beware liability framework. 2. Mackey believes that stakeholder theory makes being a CEO more difficult. 3. Free market theorists argue that strict liability laws impose excessive costs on businesses and corporations 4. Stakeholder theory includes only buyers, sellers, and CEOs within its framework of ethical concern. 5. According to Galbraith, advertising creates wants and desires in people where there are none. Section 3: Short Answer 1. Explain the basic idea behind stakeholder theory in your own words and be sure to explain how it differs from the classical model associated with Friedman. 2. Clarify Mackey’s notion that corporations have positive obligations toward communities. What does he mean on this point? 3. Briefly explain the argument against strict liability law from Bush’s Council of Economic Advisors. Does this argument favor social justice concerns or economic growth? 4. Name and briefly discuss two of Brenkert’s criteria for assessing liability. Does this framework favor social justice concerns or economic growth? 5. Briefly reconstruct the argument against advertising to vulnerable groups. Provide an example of a vulnerable group and explain why that group might be considered problematically vulnerable to advertising. Section 4: Essay The entire program is available online for free at: http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/ In your lecture and readings, you were introduced to a wide range of positions regarding the ethics and proper scope of advertising and marketing. These spanned the range of: 1. All advertising/marketing is permissible 2. No deceptive advertising/marketing is permissible (all non-deceptive advertising is permissible) 3. No advertising/marketing to vulnerable groups is permissible 4. Marketing/Advertising as such is objectionable 5. We need to move away from a consumer-based culture filled with marketing/advertising With these positions in mind, and using material from The Persuaders, your task is to consider the following question: What is your position on advertising and marketing and its proper scope and role in our culture and economy? Where, if at all, do you find yourself in the range of positions listed above? What are the reasons for your position? Does the film confirm or complicate your position? Use material from the film to explain and defend your position. Expect to write around 250 words for this essay. Excellent answers should include detailed examples from the film to illustrate the points you are making.