The American Fur Company

[Ve]

1. Identify several specific stakeholder groups in each case study and
discuss their relevance. According to the stakeholder model, which of
these stakeholder groups in each case study would be considered
primary stakeholders? Use facts from the case study to support your
argument.

One of The American Fur Company’s Primary stakeholders was the
government. Astro had to rely on the government movement before he
could grow his company. During 1803 when the United States expanded
their territory to Louisiana Astro took advantage of the new land,
after learning that there were plenty of beaver and otto to harvest
and trade, he proceed to capitalize on the newly establish areas. He
also learn from the adventure of Lewis and Clark that the land
provided plenty of other fur and had Indian settlers who were friendly
to American people which would be perfect as his suppliers.

In 1816 Astro lobby succeeded when in getting the government to forbid
foreigner from trading fur in the Northwest Territory. This gave Astro
the ability to monopolize on the fur industry in America.

Another really important Primary Stakeholder for The American Fur
Company were there the Indians who were supplying Astor with the fur.
While Astor was making over 1000% of profit from the trades with these
Native people they too were receiving items that were not easily
attainable by their people.

Another one of The American Fur Company primary Stakeholder would be
their Employees. Astor treated his employees horrible. Astor exploited
his employees every way that he could. He cut their salary from 100 a
year to 250 every 3-year. Because he own everything from the shops and
clothing and all other living expense the workers would need, he up
the price to profit from them over 100%. He also would sell water down
Whisky to his employees and over price clothing 300-400 of the prices
of the post. Employees also worked in very harsh conditions such as
hazardous weather and dangerous zones. For example in 1845 about 41
percent of his men who trapped and killed the beaver were killed and
attack by the Natives.

2. What facts specific to each case study are consistent with the
market capitalism model of competitive markets?

One of the most specific facts to the market capitalism and the model
of competitive market was that the government was not a big part of
interfering with The American Fur Company. During the beginning stages
of Astor’s fur business he had a few issues with the Government trying
to put post up so that the trading business would be more regulated.
But this didn’t work out so well because people and also Astor were
using Alcohol and other incentive to lure the Native to their
business. During the most successful part of the company’s career the
government stayed away from the company and put very regulations on
them. By doing so The American Fur Company succeeded in competing with
other companies.

3. What facts specific to each case study are not consistent with the
market capitalism model of competitive markets?

The most inconsistent fact about The American Fur Company would be
that they had a monopoly over in the US. In area such as the North
West when the government agreed to not allow any foreign country to do
business The American Fur Company began their monopoly in this area.
Because the area was so new, there weren’t any regulation against the
company to treat the market fairly for other companies. Astor would
set up trading post next to other fur company such as the Columbian
Fur Company and Bernard Pratt and Company and “engaged with cutthroat
price competitive” which resulted in them bankrupting.

4. What facts specific to each case study are consistent with the
stakeholder model of competitive markets?

The American Fur Company was consistent in that they consistently made
sure they made profit for the investors. In the case of The American
Fur Company even though Astor was the owner of 99.9 of the stock, he
manage to make profit for himself who was the biggest stockholder.


5. What facts specific to each case study are not consistent with the
stakeholder model of competitive markets?

The American Fur Company was not consistent with treating their
customers and their employees ethically right. Astor would not allow
their employees to buy product of other companies and while they were
working with him. He also cut their salary and sold them product that
was not to standard. By watering down Whisky and selling them to his
employee at price 100 percent more is not legitimate. The stakeholder
model says to treat your stakeholder ethically correct.

Stakeholder Model

“ The stakeholder model by contrast is an ethical theory of management
in which the welfare of each stakeholder must be considered as and
end.”



6. Which one of the fourteen different theories of ethical behavior
detailed in chapter 8 could best describe the firm's actual behavior?
Is this theory consistent with the market capitalism's model of
competitive markets? Explain your answer.

The American Fur Company and Astor had very little ethic to work with.
Astor deprived his stockholders of dividend and made profit for
himself. Astor ethical principal would only fall under two categories,
which were The Categorical Imperative and the Conventionalist Ethics.

Categorical Imperative: Act only according to the maxim by which you
can at the time wills that it should become a universal law.

In the case of the American Fur Company Astor had use bribery and
loans to win his way to the government’s decision. During the early
1800 bribery was not an illegal matter, so Astor was not breaking any
law by doing so. Yet he did understand the it was not always the right
way to go about doing business.


Conventionalist Ethic: Business is like a game with permissive ethics
and any action that does not violate the law of permitted.


7. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
market capitalism model? Explain your answer.

The firm does not have characteristic that show social responsibility
that consist with the market capitalism model. The model explains that
the firm should be responsible to the environment and the people are
that is involves with or around the business. The American Fur Company
would go and clear out an area by over trapping fur and move on to the
next land available. They did not work to improve the society even
after they promise the government that they would help people settle
down in the new location. They also did


8. Would you characterize the firm’s philosophy concerning corporate
social responsibility in each case study as being consistent with the
stakeholder model? Explain your answer.

The firm does not hold corporate social responsibility, because they
did not allow competitors to compete in the market and they
consistently use illegal and non-ethical ways to run their business.
The American Fur Company had promise the government that they would
have many investors to start the company and do business legally with
others. Astor only allowed 4 other investors with very little
investment so that he could hold the stock percentage at 99.9 %.


9. What specific role, if any, did the government play in each case
study? Was the government's actions influenced in any way by the
firm?


The government had a large part of the company’s success. By having
very little regulation towards them it allowed the company to
monopolize in the industry. Because the company had connection with
government and the president they convince them to regulate on foreign
business and also Astor convince them to allow him to have his company
expand in the Louisiana area. Government official such as Cass had
been given as much as 35,000 by Astor. The president of US at one
point owed Astor 5,000 dollars.



10. Were there any specific business practices in each case study that
stood out as either tremendously innovative or remarkably flawed?
Explain your answer.

In 1831 Astor introduce the new technology innovation the steamboat
Yellowstone, Which could travel up from 50-100 miles a day in
comparison to the Keelboat that was used by his competitors which
would only travel 20 miles a day. This innovation made The American
Fur company even more competitive in the market.