A Business Organization Of The Gilded Age

Decent Essays

Karen George
Period 5

A business organization left to monitor its adherence to legal, ethical or safety standards on its own, runs the risk of unmonitored and unfettered damage to the economy. The Gilded Age in America was a time in history marked by ruthless competition and zero business ethics that saw only a few rise to the top. John D. Rockefeller of the Standard Oil Company became a so-called “Captain of the Industry” and a household name. He served as the poster child for Capitalism and in the nature of a true capitalist, he amassed tremendous wealth. However, along with his incredible success, Rockefeller also became known as the “Robber Baron” due to his unethical business practices of monopoly. Rockefeller wanted to …show more content…

At around the same time the Civil War began, the demand for his goods increased greatly, and he found himself amassing a small amount of wealth. And so, while the average worker earned about $8 a week, Rockefeller was on his way to be worth millions. Rockefeller introduced new techniques that completely reshaped the oil industry as well as how business was run. In 1859, Edwin Drake discovered oil in Titusville, Pennsylvania, and Rockefeller was quick to foresee a future. He was persuaded that refining oil would bring immense wealth and so he began to sell off his other interests. Around 1863, Rockefeller and several partners entered the booming oil industry by investing in a Cleveland Refinery. During the 19th century, kerosene was in high demand and during the process of refining crude oil to kerosene, there were many byproducts that many saw as waste, but thrifty Rockefeller saw it as gold. Byproducts such as petroleum jelly was sold to medical supply companies, paraffin to candlemakers, and other wastes as paving materials for roads. He kept shipping a plethora of goods, therefore, railroad companies drooled over the prospect of getting his business. Due to the immense use of railroads, Rockefeller demanded discounted rates, or rebates from them. The high cost of transporting his oil to his Cleveland refineries cost 40 cents

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