A Detailed Report on Managing Legal and Ethical Compliance

This report provides a comprehensive overview of managing legal and ethical compliance within a business context. It identifies several legal obligations that employees must adhere to, including norms for leave, working hours, terms of employment, tax compliance, and adherence to the company's code of conduct. The report also outlines ethical obligations related to hiring practices, resource utilization, and decision-making processes that benefit both the firm and its employees. Various compliance job roles, such as Director of Compliance and Compliance Assistant, are discussed, emphasizing their role in setting the right culture and fostering innovation. The report underscores the importance of seeking legal advice when facing ethical issues and highlights the necessity of policies and procedures to address workplace discrimination, bullying, harassment, code of conduct violations, and health and security concerns. Furthermore, it identifies crucial records that companies must maintain, including financial accounting, work health and safety, training, sales, policy, legal, fiscal, and profit and loss records. The report also details steps to ensure legal and ethical obligations are followed, such as fostering a culture of respect for values, integrating ethical infrastructure with legal compliances, and adopting realistic systems. It outlines the consequences of non-compliance, including issues with registration, potential impacts on future capital formation, and legal repercussions. Finally, the report suggests steps to take in case of a breach, such as testing security fixes, forming a task force, contacting outside parties, and consulting with the legal team, and it addresses how to handle unethical behavior by colleagues, emphasizing the importance of addressing the issue internally and, if necessary, escalating it to higher authorities. The report concludes by mentioning the importance of accreditation and the benefits of continuous improvement processes.

Running Head: Manage Legal and Ethical Compliance
Manage Legal and Ethical Compliance

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Manage Legal and Ethical Compliance
1. There are several legal obligations which every employee has to follow:
 Leave: There are norms for leaves which employees can take in a year. There are
policies made for annual leaves as to how many and when an employee can avail
them.
 Hours of Work: There are certain hours which an employee is obligated to work
for every working day. Some companies have 8 hours working and some 9.
 Terms of Employment: When the employee joins the company, he or she is given
the terms of the employment and the signatures are taken by the employer on that
document. An employee has to abide by them.
 Tax: The company is responsible of deducting the apt amount of tax and the
employee is also abided by those in every company rules so as to follow the
company as well as Government rules.
 Code of Conduct: There is this thing called COBC. Every employee has to follow
that code of conduct on which the company’s policies are based on. If not
followed, company can take actions against the employee1.
2. There are few ethical obligations, which apply. They are; a business should hire
people; the hired people should be right for the job; the resources should be utilized
wisely for the business, and the decisions should be taken in the benefit of the firm as
well as the employees. All such are the ethical obligation that applies to the firm.
3. Compliance job roles are Director of Compliance, Associate Director, Senior Manager,
Compliance Assistant and Trainee. All these people. Tackle compliance issues by
setting up the right culture, good marketing activity, innovations of new ideas etc.
4. Whenever the firm is going through the ethical issues irrespective of who is the culprit
(firm or employee or others), a company has to take legal advices as Government and
Police are involved in these types of situations.
5. Yes, there should be policies and procedures followed by each and every followed by
every company. The issues which should be addressed are:
 Workplace discrimination and bullying and also harassment.
 Code of conduct which are exactly as disciplinary policies for the employees to be in
limits.
1S. C.Ghernia and G.Vintila,‘Exploring the Impact of Corporate Social Responsibility
Policies on Firm Value: The Case of Listed Companies in Romania’,Economic and
Sociology, Vol.9, no. 1,2016, p. 23-42.

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Manage Legal and Ethical Compliance
 Compliance issues also should be addressed by the policies.
 Ethical issues
 The employees who are angry with the system or managers or anything else. There
are laws and norms which a firm has to deal with such employees.
 Health and security issues if there are any in the firm such as Stress etc.
6. There are several types of records which a company is needed to keep all the time.
They are:
 Financial Accounting System:
 Work Health and Safety Records
 Training Records
 Sales Records
 Policy Records
 Legal Records
 Fiscal Records
 Profit and Loss Records Etc.
7. Steps to ensure Legal and ethical obligations being followed are:
 The employees of the firm are to be realized that the values are to be abided by them
not because they are forced to but because it is their duty and they should respect
them.
 Ethical infrastructure should be imbibed with the legal compliances. The culture of
the company cannot be written but it is created by unwritten rules2.
 Realistic systems should be adopted like trust accounting and self-custody etc.
8. Consequences of non-compliance are:
 The issues can come if the failure with registration needs occur.
 If failure to comply with the laws of the security might hamper the future capital
formation chances.
 Failure to compliance is illegal and failure in this can let the company down in many
ways. It depends upon the type of failure of the compliance3.
2S. C. Gilman,‘Ethics codes and codes of conduct as tools for promoting an ethical and
professional public service’
2005,https://www.oecd.org/mena/governance/35521418.pdf(accessed 4 June 2018)
3P.Benedek,‘Compliance Management – a New Response to Legal and Business Challenges’,
Acta PolytechnicaHungarica, Vol. 9, No. 3, 2012.

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Manage Legal and Ethical Compliance
9. Steps for the firm to be taken in case of any breach occurs are testing the security
fixes, forming of the task force to act on the breach, contacting the outside parties and
speak to the legal team etc.
10. When a colleague acts unethically, this means that he has become a hazard to the firm
and he can hurt anyone in the company. In this case, one should talk to the other
people in the company and discuss the case. Let the person know the importance of
ethics in the business and if this also does not work then it should be taken forward to
the higher authorities.
11. The key regulatory bodies are the ones which are regulated by the legislature for
implementing and reinforcing laws.
12. Yes, the firm should be accredited. This can be done by taking the accreditation
certification4.
13. Continuous Improvement process benefits can be taken by seeking continuous
improvement, by motivating the employees, increase employee motivation etc.
4M. S. Stocks, ‘The effect of AACSB accreditation on the recruitment of entrylevel
accountants’,Research gate. Vol.10, no. 1, 2017.

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Manage Legal and Ethical Compliance
Bibliography
Benedek, P.,‘Compliance Management – a New Response to Legal and Business
Challenges’, Acta PolytechnicaHungarica, Vol. 9, No. 3, 2012.
Ghernia, S. C. andVintila, G.,‘Exploring the Impact of Corporate Social Responsibility
Policies on Firm Value: The Case of Listed Companies in Romania’,Economic and
Sociology, Vol.9, no. 1,2016, p. 23-42.
Gilman, S. C.,‘Ethics codes and codes of conduct as tools for promoting an ethical and
professional public service’
2005,https://www.oecd.org/mena/governance/35521418.pdf(accessed 4 June 2018)
Stocks, M. S., ‘The effect of AACSB accreditation on the recruitment of entry level
accountants’,Research gate. Vol.10, no. 1, 2017.