Question

Discuss the main objectives of compliance legislation in relation to the need for compliance, risk and accountability.

Answer 1

Compliance legislation is of utmost importance for following reasons :

1. To safeguard shareholders value
2. To protect brand image
3. To prevent market Capitalization from plunging sharply
4. To avoid loss of consumer trust
5. To avoid litigation, corruption or arbitration charges.

Various Acts like Civil rights Act, sexual harrasment at Workplaces Act, Sarbanes Oxley Act, Right to Information Act, Equal employment opportunities Act are substantial for compliamce and risk management and strong accountability of any organisation .