Corporate Responsibility in a Changing Legal Environment

New agencies include: The National Highway Traffic and Safety Administration (1970), Environmental Protection Agency (1970), Consumer Product Safety Commission (1972), Occupational Safety and Health Administration (1973). In addition, the Federal Trade Commission acquired broad rulemaking powers in 1975 and the Food and Drug Administration expanded its authority over the medical device industry in 1976.

With few exceptions—notably the A.L.A. Schechter Poultry Co. v. U.S. case which invalidated aspects of the National Industrial Recovery Act in 1936—the courts have upheld such delegation.

Lieberman Jethro , The Litigious Society (New York, NY: Basic Books, Inc., 1981), p. 33.

Taylor Stuart Jr. , “Costs and Complexities Stifling Justice System, Experts Warn,” The New York Times, June 1, 1983, p. 11.

Bardach Eugene Kagan Robert A. , Going By the Book: The Problems of Regulatory Unreasonableness (Philadelphia, PA: Temple University Press, 1982), p. 12.

Mallor Jane Roberts Barry , “Punitive Damages: Toward a Principled Approach” Hastings Law Journal, Vol. 31 (1980): 641.

Manne Henry , “The First Lecture” in Manne Wallich H. C. , The Modern Corporation and Social Responsibility (Washington, D.C.: American Enterprise Institute for Public Policy Research, 1972), p. 5.

Ackerman Robert , “How Companies Respond to Social Demands,” Harvard Business Review July/August, 1973), p. 88; Carroll Archie B. , “A Three-Dimensional Conceptual Model of Corporate Performance,” Academy of Management Review Vol. 4, No. 4 (1979); Sethi S. P. , “Dimensions of Corporate Social Responsibility, California Management Review (1975); Stone Christopher D. , Where the Law Ends: The Social Control of Corporate Behavior (New York, NY: Harper & Row, 1975); Wilson Ian , “What One Company is Doing About Today's Demands on Business,” in Steiner George A. , ed., Changing Business-Society Interrelationships (Los Angeles: Graduate School of Management, UCLA, 1975).

Gatewood Elizabeth Carroll Archie B. , “The Anatomy of Corporate Social Response: The Rely, Firestone 500, and Pinto Cases,” Business Horizons (September/October, 1981).

Preston Lee E. James E. Post , Private Management and Public Policy (Englewood Cliffs, NJ: Prentice-Hall, 1975), pp. 71–74.

Aristotle , Ethics, Book III, Ch. 1, in The Philosophy of Aristotle (New York, NY: New American Library, 1963), p. 316.

Freedman James O. , Crisis and Legitimacy: The Administrative Process and American Government (Cambridge, MA: Cambridge University Press, 1978), p. 31 ff.

For a fuller discussion of the stakeholder model, see Emshoff James R. , Managerial Breakthroughs: Action Techniques for Strategic Change, (AMACOM, 1980); Freeman R. Edward , Strategic Management: A Stakeholder Approach (Boston, MA: Pitman Publishing Co., 1984).

Hinds Michael deC. , “Tylenol Spotlights $6 Billion Industry,” New York Times, October 10, 1982.

Sherrid Pamela , “Tampons After the Shock Wave,” Fortune, August, 10, 1981, p. 115.

Hearings on H.R. 5545, H.R. 974 and S. 510 Before the Subcomm. on Health and the Environment of the Committee on Interstate and Foreign Commerce, 94th Cong. 1st Sess. (1975) p. 199.

21 U.S.C. sec 321 et seq. For a full discussion of the legislative history and the scope of the legislation, see Foote Susan Bartlett , “Loops and Loopholes: Hazardous Device Regulation Under the 1976 Amendments to the Food, Drug and Cosmetics Act,” 7 Ecology Law Quarterly 101 (1978).

Morbidity and Mortality Weekly Reports (MMWR) Atlanta, GA: Center for Disease Control, Vol. 29, No. 25, 1980.

Consent Decree signed by Procter and Gamble and the Food and Drug Administration (September 22, 1980).

Small Ben , “Gaffing at a Thing Called Cause: Medico-Legal Conflicts in the Concept of Causation,” Texas Law Review, Vol. 31 (1953): 655. See also: Foote Susan Bartlett , “The Role of Tampons in Toxic Shock Syndrome,” California Trial Lawyers Forum Vol. XI, No. 10 (1981): 289.

Lieberman , op. cit.

Owen David G. , “Problems in Assessing Punitive Damages Against Manufacturers of Defective Products,” University of Chicago Law Review, Vol. 49 (1982): 8.

New York Times, April 25, 1982.

Wall Street Journal, December 20, 1982.

Sherrid , op. cit.

Deal Terrence Kennedy Allan , Corporate Culture: Rites and Rituals of Corporate Life (Reading, MA: Addison Wesley, 1982), p. 31.

Consent Decree, op. cit., see note 19.

News Release from Procter and Gamble, Cincinnati, Ohio, September 27, 1980.