Legislation and business - EdexcelMeeting legal obligations

Consequences of meeting legal obligations

Providing products and services that meet or exceed legal requirements will gain a business a good reputation for reliable and trustworthy products. As this reputation grows, sales are likely to increase, as more customers are attracted.

Complying with employment law means that staff will feel more confident that they will be safe at work and that their employer takes its responsibilities seriously. This can bring a number of benefits:

• staff are more likely to work harder, which results in the business being more efficient
• staff are more likely to stay working for the business, which reduces recruitment costs
• the business is more likely to gain a good reputation, which makes it easier to recruit new staff

Consequences of not meeting legal obligations

Businesses that choose not to comply with the law are likely to face a number of issues:

• employers could find themselves in court or an employment tribunal which means they may have to pay expensive legal fees
• employers may have to pay fines and compensation if they break employment laws
• the business’ reputation could be damaged by bad publicity, which could result in a loss of sales and staff
• suppliers and stakeholders may be reluctant to be associated with the business