How Corporations Benefited During the Rapid Industrialization of the United States
The only thing second to the wealth of individuals such as Rockefeller or Carnegie were the corporations they ran. But it is with this wealth that the companies these men headed were able to exert such a positive influence within society. Businesses of this caliber - such as the Carnegie Steel Company or the Standard Oil Company - were brand new, nothing like it had existed before. Even with their size and ruthless business practices, these companies contributed greatly in philanthropic ventures, technological innovations, and influencing the very foundations of labor markets. The formation of corporations during the industrialization was an incredibly good thing, both for the corporations themselves as well as society as a whole.
The rise of corporations not only impacted how people made a living for themselves but how they viewed the economy as a whole. Before the prevalence of large and powerful corporations, the United States depended on the exportation of agricultural goods, which greatly inhibited the country’s own industrialization (1). People were no longer dependent on the earth for a profit. Instead, they were adjusting a a wage-labor system, which made it possibly to accrue wealth at a consistent pace while investing one’s efforts within a corporation (2). This new system of work was mutually beneficial for both employer and employee: the employer was guaranteed a workforce within their enterprise and the employee was guaranteed a consistent pay-check. As more and more people switched from an agricultural lifestyle to an industrial one, businesses too could continue to expand. Without the rise of corporations, society may have remained agriculturally-dependent indefinitely.
The expansion of businesses into large, powerful corporations brought forth other benefits than to solely the owners of said companies. The technological advances that developed greatly altered the daily lives of many citizens and improved the quality of lives for thousands more. The transcontinental railway across North America was completed in 1869, which allowed for greatly reduced costs in many facets of society, such as produce (3). The development and implement of the railroad system not only made travel for both people and goods vastly easier, but it connected smaller, more rural towns to the hustle and bustle of the larger, more established cities (4). The development of the railway also allowed raw materials to be shipped from various parts of the country, ensuring the institution could survive no matter where it was based in the country. The development of the railways connected people to each other as well as enforcing a seamless interconnected economy.
For thousands of years, wide-scale philanthropy was unheard of, as the majority of people could barely support themselves and their families, let alone thousands and thousands of strangers. This was all changed with the establishment of the Rockefeller Foundation. John D. Rockefeller established the Rockefeller Foundation in 1913 to continue philanthropic endeavors. While this can be seen as a generous action to the public and society as whole, it can also be a superficial effort to improve the Standard Oil Company’s public image and move away from the idea that Rockefeller was simply a “robber baron,” which can be labeled as a sort of corporate or strategic philanthropy (5). However, to this day, the Rockefeller foundation has donated over three billion dollars to various causes and institutions (6). Knowing this, it’s hard to think negatively of a giant corporation when they’re willingly donating a huge amounts of money to charity organizations and to the less fortunate. While the intent is not fully pure, it still had indisputable beneficial effects for the general population. Between 1855 and 1934, John D. Rockefeller himself donated a total of $530,853,632 to various institutions, including various educational facilities and medical schools (7). The philanthropy of Rockefeller and men like him can still be felt nearly a hundred years later, a testament of the impact Rockefeller’s humanitarian actions.
In short, one could say that not only did large corporations benefit during this time but also society as a whole. Philanthropic endeavors increased in both frequency and monetarily, due in part to unfathomable donations by men such as John D. Rockefeller and Andrew Carnegie. The rising of corporations also heralded many technological innovations, such as the railroad, an innovation which not only made the shipping of products across the country easier but connected many rural towns to developed cities. The emergence of the wage-labor system decreased the country’s dependence on agriculture, heightening the power and influence corporations had on the work force. During this period of rapid industrialization, power and influence shifted to large corporations, which only vitalized and reenforced the infrastructure of society as we know it today.
References
1. "Thomas Jefferson's Economic Policy Part 3." NewWaveSlavecom. http://newwaveslave.com/2010/08/thomas-jeffersons-economic-policy-part-3/
2. Independence Hall Association. "Economic Growth and the Early Industrial Revolution." ushistory.org. http://www.ushistory.org/us/22a.asp
3. Butler, Chris . "The Flow of History." FC112: Railroads and Their Impact (c.1825-1900) -. http://www.flowofhistory.com/units/eme/17/FC112
4. "The Second Industrial Revolution, 1870-1914." US History Scene. http://www.ushistoryscene.com/uncategorized/secondindustrialrevolution/
5. Porter, Michael, and Mark Kramer. "December 2002." Harvard Business Review. http://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy/ar/pr
6. Rockefeller Foundation. "Our Story." - Rockefeller Philanthropy Advisors. http://www.rockpa.org/page.aspx?pid=238 7. New York Times. "Rockefeller Gifts Total $530,853,632." New York Times. http://www.nytimes.com/books/98/05/17/specials/rockefeller-gifts.html
The only thing second to the wealth of individuals such as Rockefeller or Carnegie were the corporations they ran. But it is with this wealth that the companies these men headed were able to exert such a positive influence within society. Businesses of this caliber - such as the Carnegie Steel Company or the Standard Oil Company - were brand new, nothing like it had existed before. Even with their size and ruthless business practices, these companies contributed greatly in philanthropic ventures, technological innovations, and influencing the very foundations of labor markets. The formation of corporations during the industrialization was an incredibly good thing, both for the corporations themselves as well as society as a whole.
The rise of corporations not only impacted how people made a living for themselves but how they viewed the economy as a whole. Before the prevalence of large and powerful corporations, the United States depended on the exportation of agricultural goods, which greatly inhibited the country’s own industrialization (1). People were no longer dependent on the earth for a profit. Instead, they were adjusting a a wage-labor system, which made it possibly to accrue wealth at a consistent pace while investing one’s efforts within a corporation (2). This new system of work was mutually beneficial for both employer and employee: the employer was guaranteed a workforce within their enterprise and the employee was guaranteed a consistent pay-check. As more and more people switched from an agricultural lifestyle to an industrial one, businesses too could continue to expand. Without the rise of corporations, society may have remained agriculturally-dependent indefinitely.
The expansion of businesses into large, powerful corporations brought forth other benefits than to solely the owners of said companies. The technological advances that developed greatly altered the daily lives of many citizens and improved the quality of lives for thousands more. The transcontinental railway across North America was completed in 1869, which allowed for greatly reduced costs in many facets of society, such as produce (3). The development and implement of the railroad system not only made travel for both people and goods vastly easier, but it connected smaller, more rural towns to the hustle and bustle of the larger, more established cities (4). The development of the railway also allowed raw materials to be shipped from various parts of the country, ensuring the institution could survive no matter where it was based in the country. The development of the railways connected people to each other as well as enforcing a seamless interconnected economy.
For thousands of years, wide-scale philanthropy was unheard of, as the majority of people could barely support themselves and their families, let alone thousands and thousands of strangers. This was all changed with the establishment of the Rockefeller Foundation. John D. Rockefeller established the Rockefeller Foundation in 1913 to continue philanthropic endeavors. While this can be seen as a generous action to the public and society as whole, it can also be a superficial effort to improve the Standard Oil Company’s public image and move away from the idea that Rockefeller was simply a “robber baron,” which can be labeled as a sort of corporate or strategic philanthropy (5). However, to this day, the Rockefeller foundation has donated over three billion dollars to various causes and institutions (6). Knowing this, it’s hard to think negatively of a giant corporation when they’re willingly donating a huge amounts of money to charity organizations and to the less fortunate. While the intent is not fully pure, it still had indisputable beneficial effects for the general population. Between 1855 and 1934, John D. Rockefeller himself donated a total of $530,853,632 to various institutions, including various educational facilities and medical schools (7). The philanthropy of Rockefeller and men like him can still be felt nearly a hundred years later, a testament of the impact Rockefeller’s humanitarian actions.
In short, one could say that not only did large corporations benefit during this time but also society as a whole. Philanthropic endeavors increased in both frequency and monetarily, due in part to unfathomable donations by men such as John D. Rockefeller and Andrew Carnegie. The rising of corporations also heralded many technological innovations, such as the railroad, an innovation which not only made the shipping of products across the country easier but connected many rural towns to developed cities. The emergence of the wage-labor system decreased the country’s dependence on agriculture, heightening the power and influence corporations had on the work force. During this period of rapid industrialization, power and influence shifted to large corporations, which only vitalized and reenforced the infrastructure of society as we know it today.
References
1. "Thomas Jefferson's Economic Policy Part 3." NewWaveSlavecom. http://newwaveslave.com/2010/08/thomas-jeffersons-economic-policy-part-3/
2. Independence Hall Association. "Economic Growth and the Early Industrial Revolution." ushistory.org. http://www.ushistory.org/us/22a.asp
3. Butler, Chris . "The Flow of History." FC112: Railroads and Their Impact (c.1825-1900) -. http://www.flowofhistory.com/units/eme/17/FC112
4. "The Second Industrial Revolution, 1870-1914." US History Scene. http://www.ushistoryscene.com/uncategorized/secondindustrialrevolution/
5. Porter, Michael, and Mark Kramer. "December 2002." Harvard Business Review. http://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy/ar/pr
6. Rockefeller Foundation. "Our Story." - Rockefeller Philanthropy Advisors. http://www.rockpa.org/page.aspx?pid=238 7. New York Times. "Rockefeller Gifts Total $530,853,632." New York Times. http://www.nytimes.com/books/98/05/17/specials/rockefeller-gifts.html