Motivating Management: Corporate Compliance in Environmental Protection*

Based on interviews with facility managers in the electroplating and chemical industries, this study examines regulated firms’ perceptions of how various instrumental, normative, and social factors motivated their firms’ environmental actions. We found that “implicit general deterrence” (the overall effect of sustained inspection and enforcement activity) was far more important than either specific or general deterrence, and that deterrence in any form was of far greater concern to small and medium‐sized enterprises than it was to large ones. Most reputation‐sensitive firms in the environmentally sensitive chemical industry chose to go substantially beyond compliance for reasons that related to risk management and to the perceived need to protect their social license to operate. Almost half our respondents also provided normative explanations for why they complied. Overall, we conclude that there are various, often interwoven, strands that must be taken into account in understanding what motivates corporate environmental behavior, and how they play out depends very much on the size and sophistication of companies themselves and on the characteristics of the industry sector within which they are located.     

What Should We Say We Say about Contrived ‘Self-Defense’ Defenses?

Imagine someone who deliberately provokes someone else into attacking him so that he can harm that person in defending himself against her attack and then claim “self-defense” when brought to court to defend himself for what he has done to her. Should he be allowed to use this defense, even though it’s clear that he has deliberately manipulated his attacker into attacking him precisely in order to be able to harm her with impunity (assuming he were allowed to use the defense and thus escape legal penalties)? This question is the focal point in the paper that follows. I argue first that the case described above is indeed an instance of an “actio libera in causa,” albeit arguably one at the margins of this controversial class of cases. Then, using a view about the justification of self-defense that I have defended elsewhere, I show why I believe that, while the manipulator should not be deprived of the legal right to defend his self-defensive actions in such cases by claiming they were a legitimate matter of self-defense, there is good reason to enact laws that will allow him to be prosecuted, independently of his “self-defense” defense, for manipulating his attacker as he did, thus allowing him to harm her in self-defense and then defend his actions as purely a matter of “self-defense.”     

Regulatory justice: A re-examination of the influence of class position on the punishment of white-collar crime

The issue of class bias in response to white-collar crime offenders remains unresolved because of data limitations, research design problems, and debates over the conceptualization of core factors. One problem is that previous research failed to consider the full range of legal actions that can be taken against a violator of regulatory law; it typically focuses only on criminal sanctioning when addressing the issue of bias. Recent data on formal actions taken against federal securities offenders were used to reconsider the issue of bias. This analysis, however, examined the entire range of legal actions taken against offenders—civil, administrative, and criminal. I used a logistic regression analysis to determine the sampled offenders' likelihood of receiving a punitive sanction. Both principals and “contrepreneurs” were significantly less likely to receive a punitive response than managers and other legitimate actors in the workplace. Securities professionals (other than principals) were particularly vulnerable to punitive sanctions if they were affiliated with larger firms in the industry, as opposed to smaller firms. These findings suggest that the relationship between class and the punishment of white-collar offending is more complex than suggested previously.     

The Diffusion of Rights: From Law on the Books to Organizational Rights Practices

How does law change society? To gain new leverage on this long‐standing question, this article draws on two lines of research that often ignore each other: political science research on the mobilization of law, and sociological research on the diffusion of organizational practices. Our insights stem from six case studies of diverse organizations' responses to the accommodation provisions in the Americans with Disabilities Act and related state laws. We found that different modes of exposure to the law combined with organizational attributes to produce distinct “rights practices”—styles of standard operating procedures and informal routines that reflect the understanding of legal requirements within an organization. The diversity of the organizational responses challenges simple dichotomies between compliance/noncompliance, change through deterrence/change through norms, and mobilization/nonmobilization, and it underscores the importance of combining political science and sociological perspectives on law and social change.     

The impact of China's 2016 Cyber Security Law on foreign technology firms,and on China's big data and Smart City dreams

Chinese officials are increasingly turning to a policy known as Informatisation, connecting industry online, to utilise technology to improve efficiency and tackle economic developmental problems in China. However, various recent laws have made foreign technology firms uneasy about perceptions of Rule of Law in China. Will these new laws, under China's stated policy of “Network Sovereignty” (“网络主权” “wangluo zhuquan”) affect China's ability to attract foreign technology firms, talent and importantly technology transfers? Will they slow China's technology and Smart City drive? This paper focuses on the question of whether international fears of China's new Cyber Security Law are justified. In Parts I and II, the paper analyses why China needs a cyber security regime. In Parts III and IV it examines the law itself.     

When and Why do Plants Comply? Paper Mills in the 1980s*

This paper uses census data for 116 pulp and paper mills over the period 1979–1990 to examine the determinants of compliance with air pollution regulations. Several plant characteristics are significant: large plants, old plants, and pulp mills comply less frequently, as do plants with water pollution or OSHA violations, but firm characteristics generally are not significant. Enforcement activity increases compliance, but in a heterogeneous way: pulp mills are less sensitive to inspections, while plants owned by larger firms are less sensitive to inspections and more sensitive to “other” enforcement actions, consistent with the authors’ expectations and prior research results.     

Explaining Corporate Environmental Performance: How Does Regulation Matter?

How and to what extent does regulation matter in shaping corporate behavior? How important is it compared to other incentives and mechanisms of social control, and how does it interact with those mechanisms? How might we explain variation in corporate responses to law and other external pressures? This article addresses these questions through an study of environmental performance in 14 pulp and paper manufacturing mills in Australia, New Zealand, British Columbia, and the states of Washington and Georgia in the United States. Over the last three decades, we find tightening regulatory requirements and intensifying political pressures have brought about large improvements and considerable convergence in environmental performance by pulp manufacturers, most of which have gone “beyond compliance” in several ways. But regulation does not account for remaining differences in environmental performance across facilities. Rather, “social license” pressures (particularly from local communities and environmental activists) and corporate environmental management style prod some firms toward better performance compliance than others. At the same time, economic pressures impose limits on “beyond performance” investments. In producing large gains in environmental performance, however, regulation still matters greatly, but less as a system of hierarchically imposed, uniformly enforced rules than as a coordinative mechanism, routinely interacting with market pressures, local and national environmental activists, and the culture of corporate management in generating environmental improvement while narrowing the spread between corporate leaders and laggards.     

The Limits of the Economic Analysis of Regulation: An Empirical Case and a Case for Empiricism*

Can the tools of the economic analysis of law be used to identify the optimal level of stringency in regulatory standards? Data on the costs of nursing home regulatory compliance suggest that in this domain such models could only produce wildly false estimates of the optimal level of stringency. Among the reasons for this are that: (a) actual costs of compliance explain only 19 percent of the variance in the subjectively expected costs that should inform rational choices; and (b) while there is a powerful effect of expected cost on compliance disaggregated by standard, this is not a monotonic increasing effect but a parabolic relationship. The reason for the finding that almost half the nursing homes lie on the wrong side of the turning point of this parabola is that these homes tend to be run by managers who are “disengagers” from the regulatory culture. Their behavior is not to be understood in terms of rational game playing but in terms of dropping out of the regulatory game. The disengagers are in the regulatory system but not of it and certainly not economically calculative about it.     

Beyond Endogeneity: How Firms and Regulators Co‐Construct the Meaning of Regulation

What role do regulators and firms play in the construction of open‐ended regulatory terms? The new institutional legal endogeneity model posits that organizations respond to legal uncertainty by adopting formal structures to symbolically signal their compliance. These structures, however, tend to embody businesses' managerial and commercial values, as opposed to regulatory goals. Law becomes endogenous insofar as legal actors then defer to businesses' institutionalized ideas about regulation and compliance. Professionals, such as lawyers and human‐resource managers, and their strategic deployment of framing, are portrayed as the engines of the above process of legal endogeneity. By comparison, administrative agencies' strategies in shaping the meaning that corporations attach to the law are practically ignored. Building on a detailed case study of British financial firms' responses to the Financial Services Authority's Treating Customers Fairly initiative, this article problematizes the supposition of regulatory deference to business constructions of law. Instead, it develops a more balanced model that recognizes business professionals' and regulators' co‐construction of regulation and compliance. The process of regulatory meaning co‐construction, as depicted by this model, involves alignment and disputes between regulators' and professionals' strategic framing of regulatory concerns with tangible consequences for the enactment of regulation.     

Through the Back Door: Applying Theories of Legal Compliance to Illegal Immigration During the Chinese Exclusion Era

This article applies theories of legal compliance to analyze the making of this country's first “illegal immigrants”—Chinese laborers who crossed the U.S.‐Canadian and U.S.‐Mexican borders in defiance of the Chinese exclusion laws (1882–1943). Drawing upon a variety of sources, including unpublished government records, I explore the ways in which Chinese laborers gained surreptitious entry into the United States during this period and ask, what explains their mass noncompliance? I suggest that while an instrumental perspective is useful for understanding these border crossings, it overlooks other important determinants of noncompliance: normative values and opportunity structures. Specifically, the exclusion laws were widely perceived by the Chinese as lacking social and moral legitimacy, and thus not worthy of obedience. In addition, the existence of smuggling networks and liberal immigration policies in Canada and Mexico played a critical role in facilitating noncompliance. The article concludes with a discussion about the benefits and challenges of using this theoretical framework to analyze noncompliance in immigration law.     

Frustration: The mold of judicial philosophy

Abstract

The Framers understood the Constitution to be the fundamental expression of the rule of law over against the arbitrary, intemperate, and unjust “rule of men” that all too frequently existed in the political world, unfortunately both democratic as well as monarchical. Accordingly, the rule of law requires a well functioning political and legal system that includes legislative checks and balances, the separation of power between the President and Congress, an independent judiciary, federalism, etc. What happens when this “Madisonian” constitutional system, designed to express “the deliberate sense of the community,” runs into a Judicial branch that, in effect, claims we live under a Constitution, but the Constitution is what we say it is. Must the Judiciary itself be subject to the rule of law, and the decisions of a constitutional majority, or does their “independence” extend to being independent of the constraints of the rule of law and, thus, decent majority rule? How did the original John Marshall Court answer these questions, and what light do the leading cases and controversies shed on the relationship between the Marshall Court and the Madisonian System? Are we facing a situation of Marshall v. Madison?     

“Intimate Terrorism” and Gender Differences in Injury of Dating Partners by Male and Female University Students

A version of the partner violence typology developed by Johnson (Journal of Marriage and the Family 57: 283-294, 1995) that more fully reflects the inherently dyadic nature of partner violence is presented, as well as a method of using the Conflict Tactics Scales to identify cases in the typology, including “Intimate Terrorists.” Analysis of 13,877 university student dating relationships found a similar percent of male and female “Intimate Terrorists.” This is consistent with other studies of general populations and reflects inadequacies in Johnson’s methodology. Bidirectional violence, including Intimate Terrorism, was associated with the highest probability of injury, especially for women. The results suggest that programs to reduce partner violence, including reducing violence against women, should address violence and coercive control by both partners.     

When Social Norms and Pressures Are Not Enough: Environmental Performance in the Trucking Industry

Why do some business firms and not others work hard to advance regulatory values such as environmental protection and comply with regulations? Previous research indicates that business firms are influenced in that regard by a number of variables—not merely the perceived likelihood of legal punishment but also the risk of negative reactions by societal actors (which we call “social license pressures”) and the intensity of managers' commitment to norms of law‐abidingness and environmentalism. This article reports on a study of control of diesel emissions in the trucking industry, a highly competitive market with many small firms, mobile pollution sources, expensive “best control technologies,” and weak regulatory demands. In contrast to findings in studies of large firms, we found that social license pressures on small trucking firms are minimal. Trucking companies' environmental performance—good and bad—flows from managers' economic choices, which are influenced by their particular market niche. In such highly competitive, small‐firm market contexts, these findings imply, significant improvement in environmental performance is not likely without strong direct regulatory pressures.     

Alf Ross on the Nature of Law

In his work, On Law and Justice, Alf Ross sought to explain law in scientific/empirical terms, in terms that would require no recourse to what he called “metaphysics” or “idealism.” The result is a sort of translation of legal rules and official actions into propositions of behavior, predictions of behavior, and shared ideology. The present work raises questions about the tensions within Ross's work(s), and discusses the places where Ross's analysis seems to fall short of its ambitions. In the course of the discussion, the article considers issues relating to legal mistake, explanations of judicial behavior, and different types of normativity.     

“Legality with a Vengeance”: Reclaiming Distribution for Sociolegal Studies

The law and society community has argued for decades for an expansive understanding of what counts as “law.” But a content analysis of articles published in the Law & Society Review from its 1966 founding to the present finds that since the 1970s, the law and society community has focused its attention on laws in which the state regulates behavior, and largely ignored laws in which the state distributes resources, goods, and services. Why did socio‐legal scholars avoid studying how laws determine access to such things as health, wealth, housing, education, and food? We find that socio‐legal scholarship has always used “law on the books” as a starting point for analyses (often to identify departures in “law in action”) without ever offering a programmatic vision for how law might ameliorate economic inequality. As a result, when social welfare laws on the books began disappearing, socio‐legal scholarship drifted away from studying law's role in creating, sustaining, and reinforcing economic inequality. We argue that socio‐legal scholarship offers a wide range of analytical tools that could make important contributions to our understanding of social welfare provision.     

Primetime Dispute Resolution: Reality TV Mediation Shows in China's “Harmonious Society”

Through a case study of reality TV mediation shows, this article joins the debate about the recent promotion of formal and informal mediation by the Chinese government, what some scholars have called a “turn against law” (Minzner 2011). We identify three converging reasons for the sudden popularity of mediation shows on Chinese primetime television: (1) the desire of TV producers to commercially exploit interpersonal conflicts without fanning the flames of social instability; (2) the demands of official censors for TV programming promoting a “harmonious society”; and (3) the requirement for courts and other government institutions to publicly demonstrate their support for mediation as the most “appropriate” method for resolving interpersonal and neighborhood disputes. Cases drawn from two top‐rated mediation shows demonstrate how they privilege morality and “human feeling” (ganqing) over narrow application of the law. Such shows could be viewed merely as a form of propaganda, what Nader has called a “harmony ideology”—an attempt by the government to suppress the legitimate expression of social conflict. Yet while recognizing that further political, social, and legal reforms are necessary to address the root causes of social conflict in China, we conclude that TV mediation shows can help to educate viewers about the benefits and drawbacks of mediation for resolving certain narrow kinds of domestic and neighborhood disputes.     

Personal Data and the GDPR: Providing a Competitive Advantage for U.S. Companies

The European Union's General Data Protection Regulation (GDPR) became applicable in May 2018. Due to the GDPR's extraterritorial scope, which could result in massive fines for U.S. companies, comparative data privacy law is of great current interest. In June 2018, California passed its own Consumer Privacy Act, echoing some of the provisions of the GDPR. Despite the many articles comparing the two schemes of law, little attention has been given to the foundation of these laws, that is, what exactly encompasses the data referred to by these laws? By understanding how the term “personal data” or “personal information” is defined in both jurisdictions, and why these definitions and the treatment of protected data are so different, companies can strategize to take advantage of these developments in the European Union. After explaining the differences in how data is treated in the United States and the European Union by exploring the definitions, regulations, and court cases, we will explore the five legal strategy pathways that companies might pursue with respect to the legal aspects of data transfer and privacy law compliance. While these strategies range from ignoring the law to adopting the European model worldwide, this analysis of legal strategy reveals a means for companies to gain a competitive advantage through their adoption of a worldwide compliance scheme.     

Deduction and Justification in the Law. The Role of Legal Terms and Concepts

Abstract. Legal terms, such as “ownership,”“contract,”“validity,”“negligence,” are used as middle terms in legal deduction. The paper distinguishes two problems regarding this use. One is the logical function of terms for deduction within a normative system. Specific problems dealt with in this connection are meaning, definition, and economy of expression. The other problem connected with middle terms is the “moulding” and possible manipulation of the meaning of legal terms, for arriving at desired conclusions in a given scheme of inference. It is indicated how the moulding of contested legal concepts, if not restricted, will obscure the ratio of legal rules. This problem is relevant, inter alia, to arguments ex analogia in the law.     

Turning the Tables on Legal History: Parker's Common Law,History, and Democracy in America

Parker's Common Law, History, and Democracy in America joins an ongoing effort to turn the tables on “law and …” by replacing the familiar question “What can history, sociology, and cultural studies tell us about law?” with a new line of inquiry asking “What can law teach us about the reach and limits of disciplinary thinking?” In his study of the reception of common law into nineteenth‐century American jurisprudence, Parker unearths a notion of time based on stability and repetition that challenges the dominant modernist and historicist approach to the writing of law and history. Parker, however, shies away from drawing the full implications of this move and it remains unclear whether, in the final analysis, he escapes the spell of legal historicism.