MANAGEMENT

COMPLIANCE WITH LEGAL, REGULATORY, ETHICAL AND SOCIAL

REQUIREMENTS
STUDENT NAME
INSTRUCTOR NAME
DATE

ABSTRACT
Good Governance and management of organizations are one of the best ways of
ensuring its prosperity. The management needs to be in line with the legal, ethical, regulatory
and social obligations of the organization under question. Without following the
responsibility requirements in the administration of the organization then its objectives will
not be achieved at easy. Any evaluation that is made in an organization is first based on its
management, and good management must be based on compliance with the ethical,
regulatory, social and legal requirements. Non-compliance with the obligations leads to poor
management and therefore the poor performance of a given organization.
INTRODUCTION AND LITERATURE REVIEW
According to Hopkin (2013), management of any organization must follow the legal,
regulatory, ethical and social obligations for it to succeed. Legal obligations are the
guidelines stated by both the laws of that given state or the organizations constitution on how
the organization should operate. These legal requirements must be followed since its violation
may lead to discontinuation of the operations of the company. My case study is a credit
department in Winky motor vehicle assembly where I used to work a year ago. The company
ignored complying with some legal, regulatory, ethical and social requirements that strained
its resources.

TASK 1
Legal requirements this involves working in agreement with the obligation of the
law. There are many laws that govern the operations of any company or department. These
legal requirements need compliance for the smooth running of operations in a given
institution.
Regulatory requirements- each department has got a regulatory authority that is
mandated in controlling its operations. The regulatory rules set by the regulator need to be
followed by the department in question. Since I was managing a financial department, I had
to comply with the rules made by financial regulators.
Ethical requirements-this are requirements that are demanded by the code of
conduct of each profession. The financial profession has its code of conduct regulations
which need to be followed by all those working under it.
Social requirements-this are the requirements demanded to ensure good relations
among workers and to the stakeholders.
I carried out research in my department to check whether I complied with some of the
legal, ethical, regulatory and social requirements. I developed self-assessment forms which I
used in data collection for the purpose of analysis. I was assisted in data collection by my
staff that used two main methods in collecting the data and filling the self-assessment forms
given. They interviewed the workers in my department to obtain vital information and at the
same time used observation on the situational requirements. Cross analysis was done and the
reporting later on. The data obtained is shown in the self-assessment templates as shown
below.

Compliance toward legal responsibilities

Standar Function
d/
's
Legislati Expectat Responsi
on
ion
bilities

Legal

Legal
liability

Legal
complia
nce.

Depart
mental
procedu
res in
relation
to legal
complia
nce and
reliabilit
y.

No
contradi
ctions in
laws

This
requires
the laws
must be
followed
at any
given
time.

This
demand
s that all
activities
are done
under
the
consider
ation of
complia
nce and
reliabilit
y of the
law.

Complia
nce
Measure
ment

Outc
ome

Ensure
that the
compan
y relies
and
depends
on both
internal
and
external
laws in
making
decisions
.

All
decisions
made by
the firm
are
based on
set
regulatio
ns.

No
decisi
on is
carrie
d out
witho
ut
legal
proce
dures
being
follo
wed.

Ensure
that
each the
rules are
complie
d to by
all
member
s of my
departm
ent.

Each
part and
the
member
of the
organiza
tion is
aware of
the roles
he/she
has to
play as
per the
law
requirem
ent.

Ther
e was
the
comp
liance
with
the
laws
and
no
contr
adicti
ons
obser
ved.

To
ensure
that all
legal
procedu
res are
complie
d to and
respectiv
e
internal
rules
reliable.

Actio
n (as
requi
red)

Main
tenan
ce of
relian
ce on
the
statut
ory
provi
sions
at all
times.

The
legal
compl
iance
needs
to be
maint
ained
in the
organ
izatio
n.

The
legal
No
proce
interferen
dures
ce from
Smoo need
the law
th
to be
monitorin runni follow
g bodies
ng of ed for
as all the the
the
legal
operat better
procedur ions
ment
e is
of the of the
complied depart depart
to.
ment. ment.

Impact
(with
justifica
tion)

No
decision
is made
without
legal
procedu
res
being
followe
d.

There
was the
complia
nce
with the
laws
and no
contrad
ictions
observe
d.

Smooth
running
of the
operatio
ns of the
departm
ent.

Comme
ntary
There is
no
complia
nce.
There
are some
decision
s made
where
law
provisio
ns are
ignored.

No
complia
nce.
Ensuring
complia
nce for
the
wellbein
g of the
organiza
tion is
necessar
y.
Some
procedur
es are
complie
d with
while in
some,
the law
is
ignored.
There is
interfere
nce by
the
licensing
bodies.

TASK 2
IMPACTS OF BOTH COMPLIANCE AND NON-COMPLIANCE TO THE
DEPARTMENT
Compliance and non-compliance of legal, regulatory, ethical and social responsibility
can lead to both positive and negative impacts. The compliance of the legal, regulatory,
ethical and social responsibility can lead to the following:

Impacts of non-compliance
Due to the non-compliance of legal, regulatory, ethical and social responsibility, Winky
Credit Company was affected in the following ways;
Legal liability has become a problem in the department as some of the decisions made
are not based on the legal requirement. This has brought about several problems as there are
complaints from the legal bodies about the non-compliance. Some of the departmental
procedures are done about law provisions while some ignore it. This has brought about legal
complications as per the act, the legal procedures must be duly followed when making any
decision.
Bank statements- this affected the department greatly since the department in question
is a credit department in Winky motor vehicle assembly. The policy requires that Auditing
should be done in companies to check how resources are being used. In the department that I
was managing, some of the finances that were used for different purposes were not recorded.
This has resulted in imbalanced financial reports that were questionable. It took a lot of time

for the auditors to make a follow up on how each coin was spent so as to clear our
department. This was important since, in most organizations and financial departments,
finances are allocated for the wrong purposes leading to budget deficits. It is important to
comply with these financial statements requirements to avoid problems when the finances are
audited.
The safety of workers is not regarded. This is one of the requirements that are
demanded ethically and socially. In our financial department, all workers need to feel safe in
the working environment. Safety can be based on the working conditions. I was obliged to
ensure that workers in my department were satisfied with the working conditions. Some were
dissatisfied with the then conditions which resulted in them seeking to employ to other
places. Winky company lost many skilled workers many of who had worked for the company
for decades. Security also can be defined as the assurance of workers that they will be
working for the company on long term basis. This also affected the company as some
workers detected them being retrenched. This led to commotions as some went to file cases in
court to seek protection by the employment laws that called for the job security of the
workers.
Integrity- this is one of the virtues that most workers lack in an organization. Integrity
starts with the leaders where I must lead in its implementation. I have adhered to this
personally. In my credit department, there was some confidential information that was made
known not only to the other departments within the company but also to our clients and the
general public as a whole. This affected us significantly as some relevant information about
our clients' financial reports was to remain confidential. My department failed to comply with
this ethical requirement which made some of our clients to walk away from our company.
Accountability- my department was also affected significantly by non-compliance with
this accountability requirement. The regulatory authorities demand that the management
should be accountable all the time with whatever that they are undertaking. His greatly
affected my department when it came to the hiring of credit officers and casual workers. The

law requires that hiring should be done by a special committee selected by the company to
take part in that role and not an individual. This was not the case in my department as the
hiring was done by heads of the different departments only when the need arose. This made
my department to be accused of lack of accountability and openness. Another scenario was
when giving out tenders. The law demands that tendering in any department should be done
by a special tendering committee and that was not the case in my department. Noncompliance with this requirement affected my department greatly.
Compliance impacts
The company was aware of some other ethical, legal, regulatory and social requirements that
made it succeed in offering services. Some of the effects of compliance were as follows;
Adherence to the employment laws- this was one of the requirements that all workers
need to be aware of. The employment laws demand that the management of any given
department should ensure that all workers are aware of the rules. The posters bearing the
employment laws should be placed in the place accessible to all workers at a given time. This
was strictly followed by my department under my guidance since I ensured that several
posters bearing the laws were placed in different notice boards located at different points of
my department for easy access.
Responsibility- the professional code of conduct demands a sense of responsibility
from call workers in a given department. This was complied with by workers in my
department. They were responsible in all that they were doing. Each member was aware of
his/her responsibility, and they even reminded each other for the betterment of my
department. They gave me ample time to supervise them. Time working was the order of the
day as all workers were obliged to work as a group. Compliance with this ethical requirement
made it easy for my department to perform as expected.

The companies Act and the accounting standards are complied with. This has affected
the company activities as the relationship between my company and the company managing
bodies is maintained. All the activities of my department are done by the provisions of the
companies act. On the other hand, the accounting standards are high and are maintained as
per the law provisions. These have been beneficial to the company as the departmental
activities are not interrupted by the concerned regulatory bodies.
TASK 3
EXECUTIVE SUMMARY AND THE ACTION PLAN
Executive summary
Compliance with legal, regulatory, ethical and social requirements is necessary for
any department. This paper consists of a report that was obtained from self-assessment
research that I did to assess my functions about compliance with legal, regulatory, ethical and
social requirements in the credit department of Winky Motor Vehicle Assembly Company.
The report has self-assessment templates of the research that were done to evaluate
my functions and its effectiveness. The template was first prepared and all the questions that I
sought to know about my compliance with legal, regulatory, ethical and social responsibility.
I was assisted by my other employees to collect the relevant data for my assessment which
included observations and interviewing those under my management. The results obtained
were recorded in the shown template. After the research and self-assessment procedures had
been completed, the results were separated to identify the parts that were complied with and
those that received non-compliance as a whole.
From the assessment, it was evident that I did not meet most of the requirements in
my position as the manager of my department. Parts that experienced non-compliance ranged

from legal, regulatory, ethical to social responsibilities. First, there was no legal liability and
completeness. Legal procedures were not duly followed when departmental decisions were
made. This attracted a lot of legal complaints from the regulatory bodies which affected the
running of activities in my department. Other requirements that did not comply with include
fairness among employees, auditing of financial accounts and interests of the major
stakeholders.
Some of the requirements were complied with. Compliance to them affected the
company positively. The requirements include that of integrity and responsibility of workers.
Am I personally responsible? These virtues motivated my staff as they struggled to master
their roles which led to smooth operations in my department. Other requirements that were
complied with include that of proper financial statements, high accounting standards
company act adherence and maintenance of healthy relationships with the community and
some stakeholders.
All these were the findings although there was a great problem as per the assessment
since those issues and requirements that experienced non-compliance were many as
compared to those that were complied with. An immediate action needed to be done to ensure
that all the requirements that were not complied with in the department were corrected for the
betterment of the company. An action plan was made, and different steps are done to ensure
compliance.
The above steps were followed when the action plan was being implemented. All the
actions that needed to be fixed succeeded and hence compliance with all the legal, regulatory,
ethical and social requirements. This was a plus to my department as now all the
requirements were complied with. Compliance has got a lot of benefits to any given
institution like in the case of my department. The relationship between the company and the

workers, stakeholders, the regulatory bodies and all other relevant agencies is improved. This
leads to the smooth moving of activities in the company.

Action plan
From the self-assessment evaluation that I did to check for the effectiveness of my
functions about adherence to legal, regulatory, ethical and social requirements, a lot need to
be done for the future wellbeing of the department. The aspects of non-compliance
overpowered that of compliance with the demands. This calls for an immediate action that
will ensure that the parts that were not complied with are corrected.
I developed an action plan that will be used in ensuring that all legal, regulatory,
ethical and social requirements are adhered to. The action plan consists of the action to be
taken, those responsible for ensuring that the operation is implemented by taking the action
step, the requirements of the work to be completed, the challenges that were experienced in
the course of the implementation and finally, the results obtained as the struggle towards
compliance is obtained.

ACTION
STEP
(What
should be
done)

PERSON
RESPONSIBL
E
(Who will take
the action
step?)

REQUIREMENTS
(What is need for the
work to be completed)

POTENTIAL
CHALLENGE
S
(any possible
challenges that
may impede
operation
progress )

RESULTS
(Was the
action step
successful?)

Legal
liability and
compliance.

Hiring
procedures
to promote
fairness.

The
manage
ment
under my
leadershi
p

The human
resource of the
finance
department.

Financial
statements
and audits.

The accountants
of my
department

This action
step was
successful.
The legal
procedures
were now
followed in
all
departmental
decision that
was made.
This step
Creation and
This
was
empowering of
process
a committee
of setting successful.
The
responsible for
up a
hiring.
recruitm committee
was created
Revision of the
ent
hiring
committe and the rules
and
procedures.
e and
procedures
revising
of hiring
of the
proceedi changed.
ngs may With these,
take a lot the legal
compliance
of time.
was attained.
This process
Internal auditing This process
may take long to was
to be done.
be complete.
completed
Financial
Some records
although it
statements of
concerning past took a long
the previous
financial usage
time. The
years done.
are
missing.
financial
Invitation of
statements
external auditors
were
for clearance.
corrected
and both
internal and
external
auditing
done hence
compliance
with the
legal
Development of
procedures to be
followed in
decision making
to ensure legal
compliance and
liability.

It may
take a
long time
to
develop
the
required
procedur
es.

Work safety

The
management of
my department.

The signing of
contracts with
all workers.
Ensuring safe
working
conditions for
all employees in
my department.

A lot of time
may be spent in
signing the
contracts will all
workers to
ensure job
security.

Relationship
with
stakeholders
.

The
management of
my department

Ensuring validity of the

departmental activities
to ensure that the
stakeholders who are
not satisfied get
convinced.

It is expected to
take a short
while to
accomplish
these.

Employmen
t laws

The
management of
my department.

Printing of posters with

all the employment
laws and ensuring that
they are available to all
workers at any given
time.

This may take

minimum time
since workers
already know
some of the
provisions of
employment
laws.

requirements
.
These
procedures
were
completed
although
they took a
lot of time.
Legal
compliance
was
therefore
achieved.
Compliance
with this to
ensure
healthy
relationships
was attained
at easy.
This
requirement
was attained
with the
minimum
time as
expected. All
employees
were now
aware of the
entailment of
the
employment
laws.

The above steps were followed when the action plan was being implemented. All the
actions that needed to be fixed succeeded and hence compliance with all the legal, regulatory,
ethical and social requirements. This was a plus to my department as now all the

requirements were complied with. Compliance has got a lot of benefits to any given
institution like in the case of my department. The relationship between the company and the
workers, stakeholders, the regulatory bodies and all other relevant agencies is improved. This
leads to the smooth moving of activities in the company.
After the implementation of the action plan, all the legal, ethical, regulatory and the
social requirements were now complied with. This was advantageous to the department as the
problems that it was facing were put to an end. The relationship of the department with other
departments within Winky motor vehicle assembly improved. The conflicts that had existed
among the finance department workers reduced and that of the company and the stakeholders
was now better. Hiring and tendering was now done by following the due procedures and
employees were paid at the right time. They were also given an addition amount of the good
work that they did. These experiences act as a prove of the importance of complying with the
legal, regulatory, ethical and social responsibilities.

REFERENCES
Pettinger R. (2012). Management: a concise introduction, 1st ed. Palgrave Macmillan ISBN
9780230285354
Peteraf M. And Thompson A. (2015). Essentials of strategic management; the quest for
comparative advantage, 4th ed. For international students, Mcgraw-Hill Irwin ISBN
9781259094842
Hopkin. P. (2013). Risk management, Koran page; ISBN 9780749468385