Ruling Class: Upper class and corporate class

The upper class is, thus, a governing class, but not a dominant or ruling class. Therefore, by what means does it govern?

- Economic power - Political power

We consider different criteria for establishing class positions; it is not exhaustive, but it encompasses upper and lower class, with corporate, middle, and working classes in between. Different sociologists use a different criteria:

- Occupational status (Durkheimian approach) - Bureaucratic authority (Weberian approach) - Property relations (Marxist approach

The upper class is, thus, a governing class, but not a dominant or ruling class. Therefore, by what means does it govern? - Econ power

- Owners of means of production, and of stocks - Economic elites (board directors and executive officers, with a blurred boundary against the corporate class)

The upper class is, thus, a governing class, but not a dominant or ruling class. Therefore, by what means does it govern? - Political power

- Participation in the government - Political campaign contributions - Congressional lobbying - Shaping government policy

The existence of the corporate class depends on: 3. The networks of interlocking directorates (thinking of corporations) that ties top corporate personnel together This can be

- direct lock: when two corporations share top personnel - indirect lock: Two corporations tied by their board members through a third corporation

The existence of the corporate class depends on: 3. The networks of interlocking directorates (thinking of corporations) that ties top corporate personnel together These interlocking directorates can be important because they:

- reduce competitions among corporations - represent outside influence over the corporation - provide means of sharing information about corporate plan and operation - help provide unity among top corporate officials - help provide unity in corporate dealings with the government

Upper Class They are very mysterious class; we can't even capture them completely. They are:

- removed from the experience of most people - extremely exclusive:

question is posed of whether or not the upper class even exists as an identifiable group ask whether wealthy families and their children form a united class:

- there are too many people are considered in the group - no evidence to show overlapping membership indicators - intra-class marriage is not dominant

The existence of the corporate class depends on:

1. The size of major corporations and their ability to dominate the market for their particular industrial products or service 2. The concentrated control of stock in major corporations by other corporations (large banks & insurance companies) 3. The networks of interlocking directorates (thinking of corporations) that ties top corporate personnel together

Corporate Class

A group of people holding key positions of authority in major corporations. Their influence is not based on personal wealth, but their control of corporate resources

Power Elite

A small group of people who control a disproportionate amount of wealth, privilege, and access to decision-making of global consequence. The managerial reorganisation of the properties classes into the more or less unified stratum of the corporate rich

Functional Elite Theory

Elites are able to dominate the economy and politics in advanced capitalist societies because of their greater ability and functional importance, and thus elites are necessary and in the best interest of the society as a whole

Critical Elite Theory

Elites dominate and they work for their own self-interests and the detriment of classes below

Cultural Bourgeoisie

Intellectuals and technical intelligentsia - owners of their knowledge and skills Formed in a new class in modern society as a structurally differentiated and relatively autonomous social stratum through professionalism, individual control of special cultures, language, techniques, and skills. They are elitist and self-seeking and use their knowledge to advance their own interests and power.

Power elite Per Domhoff, the upper class does not do the ruling. Instead, class rule is manifested through the activities of a wide variety of organisations and institutions.

Leaders within the upper class join with high-level employees in the organisations they control to make up the power elite.

- Occupational status (Durkheimian approach) - Bureaucratic authority (Weberian approach) - Property relations (Marxist approach In contemporary societies, the interaction and convergence of all three influences

Rewards and life chances of individuals

Land and the Ruling Class in Hong Kong A number of roles were played by the government, property developers, professionals, charitable organisations and the general public.

The land was leased to charitable organisations, which would then sublease the land to big organisations. Weber: legal-rational authority model Marx: exercise of bourgeoisie influence over culture, knowledge, institutions and ideas

Interlocking directorates

The linking of two or more corporations through at least one of their board members

Upper class The most important aspect is the kind of wealth one has, and how old is it; it is

a certain life-style rather than celebrity recognition, the source of power rather than the power per se

The upper class is defined by social institutions, all of which help promote

class consciousness and unity: social clubs, expensive private schools, exclusive summer resorts, debutante balls, high-status charities, cultural events

the upper class concept refers to a group of families, whose members are

descendants of successful individuals (elite members) of one, two, or three generations ago. These families are at the top of the social class hierarchy, and maintain a distinctive style of life and a kind of primary group solidarity which sets them apart from the rest of the population.

The existence of the corporate class depends on: 2. The concentrated control of stock in major corporations by other corporations (large banks & insurance companies) They exert influence on, but

don't own, those stocks; people with institutions can then make a future. Ownership of stocks determines the influence with a corporation.

The existence of the corporate class depends on: 1. The size of major corporations and their ability to dominate the market for their particular industrial products or service Their increasing size and market control of major corporations is determined by

economies of scale and the result of market competition In the Marxist theory, this is referred to as concentration and monopoly capitalism. In the Weberian theory, this is rationalisation and bureaucratisation

Power elite It consists of key people in the three major institutions of modern society:

economy, government and military. Unlike the upper class, a social formation based on heritage and social ties, the power elite is characterised by the organisational structure through which its wealth is acquired

The existence of the corporate class depends on: 2. The concentrated control of stock in major corporations by other corporations (large banks & insurance companies) Today, few individuals and families own large amount of stock in a particular corporation. Instead,

institutional investors have increasing control over stock in major corporation. These institutional investors are most banks, pension funds and other financial trusts. They exert great influence on corporation governance and policy making

The upper class is composed of key families -

it takes generations for them to climb up, which goes to show how the age of one's capital is important; inter-marriage, too, helps keep the class exclusive

Land and the Ruling Class in Hong Kong The government heavily relies on

land sale for its revenue. The business-government collusion enhances the development of a land (re)development regime; a similar problem can be found in China.

The Inner Group of Corporate Class This is an even more elite group. They tend to have

more positions on corporate boards, are morel likely to be board members of larger corporations, and often represent large banks on corporate boards.

The upper class is, thus, a governing class, but

not a dominant or ruling class

It seems to be, however, that the upper class is losing power against a new corporate class. According to Domhoff, it is an overlap between the upper class and the corporate class that forms the

power elite: this group has the most influence in both the economy and government today.

The Inner Group of Corporate Class They have worked their way up to the corporate ladder to top positions rather than

starting off at the top from a wealthy background. They represent general corporate interests in other institutions such as foundations, universities and the government.

Corporate Class A critique of treating the upper class as a ruling class is made, and the question is posed of whether or not the upper class even exists as an identifiable group with unity and class consciousness; such argument is based on

the extent of ownership and control of corporation

Land and the Ruling Class in Hong Kong The land is sold to

the highest bidder, which is often a big developer. Around 30% of the government's revenue comes from this sale of land, with the number reaching over 50% in the Mainland.

The existence of the corporate class depends on: 3. The networks of interlocking directorates (thinking of corporations) that ties top corporate personnel together Interlocks, too, create another layer of economic concentration, gaining information for economic advantages. They are

very common, especially among financial institutions, but they do differ in pattern; some are more tightly grouped together in cliques.

the major corporation played a central role in modern economy and

weakened the influence of the old wealthy families (upper class)

Upper class - Extremely exclusive

wealth, power, education, or fame will not assure one of the upper class status, convergence of class, status or power. They are so exclusive indeed that only 0.5% - 1% of the population would qualify