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Business and Society

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Submitted By ChrisChen333
Words 638
Pages 3
T0: Connie Marie Gaglio, PhD
FROM: Jia Yi Mai
DATE: 3 November 2015
SUBJECT: Memo 3, Can Conscious Capitalism Solve the Problems Created by Gilded Age 2.0

The era of the gilded age 2.0 was characterized by rapid economic growth especially in the North and the West of America. The market was operating on a laissez faire basis of capitalism.
The social gilded age was characterized by a period of boom. Firms needed to produce more output in order to maintain their income level and position in the market. In a period of boom, families needed high wages to sustain them. Thus there was child labor where the families sent their children to work in the warehouse in order to earn more wages as a family. People were anticipating for a high period of inflation. The interest rates went up due to the looming inflation period that was as a result of the economic boon in the era. In addition the gilded age era brought up political issues such as tariff. The protective tariff that was set by the second James Madison administration was high (Lucas, 1980). This discourages the importation of goods from other countries and only favored that Americans. The trade relation between America and other countries was affected thus setting entry barriers of other multinational firms.

Conscious capitalism is guided by ethical standards. The firms operate in an ethical manner that is not meant to harm the consumers. A conscious capitalism enhances better financial performance. The value of conscious capitalism is supported by the fact that companies adhere to the principle that have been set and ensure to have a good and effective organization culture. In addition, conscious capitalism creates synergies and relationships that could extend to the long term existence of the companies. It is important to ensure that a firm is generous with its vendors. Cultivating a good relationship with the suppliers can be fruitful when a company is experiencing difficult financial problems. A business is more profitable when it derives its value from synergies. However, as much as conscious capitalism is seen to have its good sides, conscious capitalism can lead to unequal distribution of income. This may increase poverty to those who do not own businesses or successful companies (Strong & Mackey, 2009). The GDP per capita will tend to be high but the national GDP will be lowered due to inequality in the distribution of income.

Conscious capitalism can help in solving the problem that was created by the gilded age 2.0. by building good relationship and synergies between America and other states, America can create a friendly relation with other countries, this may create good trade relations which in future may reduce the trade barriers that have been set. Lower tariffs will ensure that there is cheaper importation of material in the country thus reducing the overall cost of production that is associated with a product.

I used categorical imperative. Categorical imperative evaluates the motivation for an action. The obligations and duties of individual roles are clearly considered before coming up with an imperative law. Conscious capitalism is based on ethical behavior and moral standards. This mode of ethical reasoning is primarily based on the desire in accordance with the concept that is being investigated in order to determine where an action lies. Rational thinking in this research is useful because the conclusions that have been arrived at in the reports needed an evaluation and assessing of the moral standard that triggered the problems caused by the gilded era 2.0.
References

Lucas, R. E. (1980). Methods and problems in business cycle theory. Journal of Money, Credit and banking, 696-715.

Strong, M., & Mackey, J. (2009). Be the solution: How entrepreneurs and conscious capitalists can solve all the worlds problems. John Wiley and Sons.

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