LAW 534 Lecture Notes - Lecture 11: Regulatory Compliance, Mitigating Factor, Complex Analysis
11 Apr 2017
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Today"s class: review of last class, chapter 8: individual liability within organizations, chapter 10: risk management systems for individuals, final exam review. Defined as theoretical ways in which one may view a corporation. Moral corporation model: johnson & johnson pulled all tylenol products from market (not just chicago) after scare in 1982. Worked with regulator to design new tamper-proof packaging. Moral high road led to eventual increase in market share for the company: also, example of pepsi & co. returning trade secrets to coca-cola, moral conduct is easy (easier?) when profits are being made. Should corporations break the law if this will maximize profits? (most penalties are fines so can do a cost-benefit analysis. ) Legal corporation model: focused primarily on regulators (democratically elected or appointed as government bureaucrats) setting minimum standards. Do corporations (those that will be regulated) have undue influence on the rules themselves (via lobbying, campaign contributions, etc.
