MGMT 202 1st Edition Lecture 10Outline of Last Lecture I. Locke and HobbesII. Laws SHOULD Be…III. Types of LawsOutline of Current Lecture I. Laws that Regulate CompetitionII. Laws that Protect ConsumersIII. Laws that Promote Equity and SafetyIV. Laws that Protect the Natural EnvironmentV. Laws that Encourage Ethical ConductVI. Limitations of Legal RequirementsCurrent LectureIf there are no laws, things are bound to go badlyLaws regulate competition to prevent formation of monopolies and inequitable pricing1890 Sherman Antitrust Act – before 1890, big businesses were in the railroad, oil, and coal industries, they were forming “trusts” or “pools” where they helped each other – made agreements with competitors and set the same high prices – Sherman Antitrust Act was made to prevent this1998 Digital Millennium Copyright Act – protect copyrights in movies/musicProtection of consumers – from food to social media 1906 Pure Food and Drug Act – (FDA – food and drug administration) – Coca Cola used cocaine up till 1903; replaced it with caffeine and weren’t saying how much; Coke decided to reveal howmuch they were using for legal interests1998 Children’s Online Privacy Protection Act – before this, anyone could get information online from minors – not just stalkers but also companiesPromotion of Equity and Safety:1963 Equal Pay Act – made it illegal for gender discrimination affecting pay when positions and other factors are the same1970 Occupational Safety and Health Act – protecting people’s safety and health in the workplaceProtection of the Natural Environment1970 Clean Air Act, 1972 Federal Water Pollution Act, 1973 Endangered Species Act All made when there was a Republican president, Democratic Congress (so there was general agreement between both parties)Before these acts, people who became sick or died from polluted air or water had the responsibility of proving the company had harmed them. After these acts, the companies had toprove they hadn’t polluted the water or air.Laws that Encourage Ethical Conduct:1991 Federal Sentencing Guidelines for Organizations – incentives for organizations to promote and build an ethical workplace – ethics training, reporting systems, etc2002 Sarbanes-Oxley Act – accounting oversight boards Limitations of Legal Requirements:-laws are just minimal behavior standards; it would be ideal for people to do better-laws are all about what you SHOULDN’T do, rather than what you should do-laws tend to lag behind society’s moral standards – e.g., having slaves, women voting, color segregated schools – people can do things they know are wrong but aren’t illegal yet-it’s hard for uneducated, poor, illiterate people to influence changes in laws – exclusive groups mainly change the laws-discriminatory