Question

What is your responsibility with respect to complying with legislation? Discuss in 100–120 words.

Answer 1

Organizations have increasing criteria for compliance with a strong obligation to follow laws and regulations that reach all the way to the top of the organisation. Since our blog posts usually address ways of fulfilling regulatory criteria, we figured it would be useful to explain why those with decision-making powers ought to consider and satisfy the responsibilities set out in laws and regulations. Of course, businesses and individuals are required to obey the laws and regulations of the jurisdictions in which they operate, but a corporation must be mindful that the sole responsibility for enforcement rests with its management.

When corporations create new departments, change their processes and see changes in legislation, they must be continuously aware of them and take steps to ensure that they comply. Doing so manually will easily become cost-prohibitive with lawyers and consultants. For order to address this problem cost-effectively, a modern company should have rigorous processes in place to ensure that everybody from front-line employees to CEOs and members of the board is in line with law. This provision extends particularly to publicly traded companies, whose boards are legally responsible for complying with all relevant laws and regulations.