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Question
“Ensuring compliance with regulations is the sole responsibility of the Legal Department.” Justify this statement for or against.
Justify
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Solution
- While the Legal Department plays a key role in interpreting laws, advising management, and ensuring legal compliance, compliance is not solely its responsibility.
- Every department must adhere to relevant regulations within its own operations. For example:
- Finance Department must comply with tax and accounting laws.
- Production Department must follow safety and environmental regulations.
- Human Resources must comply with labour laws and employee regulations.
- The Legal Department acts as a guiding and monitoring body, but all employees and departments share the responsibility of compliance.
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Chapter 7: Functioning of a Commercial Organisation - EXERCISES [Page 90]
