WDW215 Lecture #8.docx

4 Pages
Unlock Document

Woodsworth College Courses
Jim Davies

10/28/13 WDW215 Lecture #8 - Looking at law in organizations “in action” o There are laws in them, but not sure if they have the effect, or if they are been reinforced: employment discrimination o How law and organizations are interrelated to each other o Organization policies around employment discrimination, if they were substantive instead of symbolic  Law as exogenous and endogenous  Exogenous law is outside and is imposed in organizations  Endogenous: Law acquires meaning for the social arenas it is meant to regulate  Will influence the ways certain laws are understood, but that judges will understand the law (interpretation)  Reference, relevance (was it relevant) and deference (make sure the coding is something the court refers to it and whether it is relevant, they have the structure and whether or not it works does not matter) - Law in someway created this issue o Cases that provided a affirmative defence: I did it but I can excuse the behavior o Having grievance procedures within a organizations is relevant for whether or not a discrimination occurs, but they have to be effect (but courts just matter if the laws are there or not) symbolic - History of law in the corporate form 16 to 18 century o Courts were meant to deal with humans not corporations, as corporations started to do things wrong, but individuals were being punished o Organizations are made up of people, but do not know where the power is coming from: decentralized o Who are we going to hold reliable?  Decreasing of ownership (hiring people to do the work)  Limited liability, the entity itself are hold liable not individuals  Investors are only responsible for the amount they invest in - How do you deal with this effectively? o Rational choice model: proper legal sanctions (people do not want to pay, they will not violate) 1. Tax incentives and fines (monetary penalty, limited) 2. Corporations do things that they all need, therefore need a reasonable penalty 3. Act based on things other than law (contract relationships outside law) a. Alternative normative relationships (business culture, do not want a product to fail) 4. Organizational structures create problems for compliance: separate relationship between ownership and liability a. Shareholders can only benefit b. There is a incentive to take risks for profits are there 10/28/13 c. Typical beaucratic structure is fragmented, unsure of which part is going to comply, where communication is disconnected, the fear of being punished if speaking up d. Bad news travel slowly upward e. Salaries are not lose f. Decentralized decision making g. Functional decision making: different parts of the company make different decisions h. Lawyers are specialized in their own department - Compliance is usually giving to one piece of the organization - Some sections of the organizations to look over the legal compliances, some organizations are likely to violate the law if another part of the organization will be punished (not themselves) - Regulatory fines are half hazard enforced - Legal solutions 1. Up the penalty a. Tort reform/tort deform: just fine for the individual that suffered not for punitive damages b. Why an issue: certainty matters more than severity: if the company isn’t sure if they are going to be fined and regardless if the fine is huge or not, they are likely to still commit the act 2. Circumvent the organization a. Hold the organization or individual liability b. Find someone responsible, put them in jail, hold them criminally liable, people filling in the space, the potential wrong doing is held within the corporations itself, likely to happen again Certain why corporations respond to law: how they mediate (interpret) - Civil rates (race, gender) 1. The legal environment of the organizations (all the actors are influencing the environment) - Anti-discrimination law, the meaning of the law and compliance with the law is all mediated by the organization itself o Why? Employment law is relatively ambiguous (interpret accordingly to own preference) law is all a
More Less

Related notes for WDW101Y1

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.