Definition Of

Legal responsibilities

Legal responsibilities is another  one social commitment for strategic managers .

Legal responsibilities reflect the firm’s obligations to comply with the laws that regulate business activities. The consumer and environmental movements focused increased public attention on the need for social responsibility in business by lobbying for laws that govern business in the areas of pollution control and consumer safety. The intent of consumer legislation has been to correct the “balance of power” between buyers and sellers in the marketplace.

Legal responsibilities: The firm’s obligations to comply with the laws that regulate business activities.

Share it:

More from this Section

  • BCG matrix
    A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. The BCG matrix-was
  • Decisions
    Managers at all levels and in all areas of organizations make decisions. That is, they make choices. For instance, top-level
  • Management hierarchy
    Management hierarchy is the pyramid arrangement of the several levels of managers.
  • Holding company structure
    Structure in which the corporate entity is a broad collection of often unrelated business and divisions such that it (the corporate entity) acts as financial overseer “holding” the ownership interest in the various parts of the company, but has little direct managerial involvement.
  • Boundaryless organization
    Organizational structure that allows people to interface with others throughout the organization without need to wait for a hierarchy to regulate that interface across functional, business, and geographic boundaries.
  • Planned economy
    An economic system in which all economic decisions are planned by a central government is called planned economy.
  • Whistle-blower
    Whistle-blower is an individual who raises ethical concerns or issues to others.