How do government regulatory agencies and laws affect organizations? Choose one or two specific regulatory requirements and explain what effect they have on organizations. How do they differ domestically and internationally? both question has to be answered in 100 words or more.
Government regulatory agencies and laws affect organizations in a way that restricts the organizations ability to operate freely and to do as it chooses. This is not necessarily wrong, as many restrictions are for the benefit of employees, consumers, stockholders, and so forth. One such law (and accompanying regulations) is the Family Medical Leave Act (FMLA). This law and its regulations impose a cost upon employers, but the benefit is for employees. An individual that needs to take medical leave can take up to 12 weeks of protected leave, unpaid, in a year, and be able to return to his or her job or a substantially similar one after the leave is up, and the employer cannot terminate the employee for taking the leave. Clearly this places a burden on the employer, in terms of temporary employees, uncertainty, potential litigation costs, and compliance costs. Now some countries have laws that provide for much longer leave, and in certain instances, can be paid. For instance, Italy provides that for a woman expecting a child, that woman will have 2 years paid leave from the moment of conception. Other countries don’t have any such protection. Many countries also work hand in hand with the respective companies and provide this benefit through the pension plans of the government. This means that there would be less of a burden, directly, upon the business, but there is still a higher burden on both the business and the worker in terms of increased taxes and compliance costs.
• Describe the tort risk exposure for your employer or for another organization with which you are familiar. The exposure may include intentional torts, unintentional negligence torts, and torts arising from strict liability. Avoid discussing product liability. How does the risk arise? What legal principles govern this liability? What might a manager do to prevent risk exposure, detect problems that may arise, and minimize damages? Avoid repeating other students’ discussions.
Tort risk differs from business to business, and industry to industry. For instance, delivery services such as UPS and FedEx have significant tort exposure for negligence arising out of the damage to the shipments, vehicular negligence (car crashes), employee theft (vicarious liability), and so on. Medical businesses could have significant tort liability for the malpractice of its practitioners, but might not have any tort risk due to vehicular negligence and so forth. The risks arise just in the normal operation of the business, as well as through the intentional actions of some “bad apple” employees, or even the negligent actions of any employees. There are general underlying tort principles, such as negligence, fraud, and so forth which can reach many different businesses and industries. A manager can limit exposure to these tort actions by clearly establishing guidelines and procedures, policing them, and sticking to them. These procedures can call for a specific set of actions to be undertaken when there is a lost, damaged, or stolen package, such as an investigation, and proper remedial actions. Finally, a business should always have insurance, both for liability and property, such that if the business is sued, the insurance will cover the litigation costs, any court damages, and so forth, such that the negligent or intentional actions of some employee don’t effectively shut down the entire organization.