A business organization is always at risk of facing legal action as a result of a variety of reasons. An organization, in the carrying on of its business, is vulnerable to legal action being brought against it and the organization may find itself liable to pay compensation, damages or fines as a result.
Here are a few of the major areas of concern that are most likely to result in organizations facing legal action.
Organizations are usually liable for the fraud or negligence of its employees, if such fraud or negligence occurs in the normal course of business. Organizations can make use of strict internal controls to prevent such incidents; measures such as segregation of duties, restricted access to sensitive information and CCTV cameras are examples of the internal controls an organization can implement in this regard.
If an employee is injured or harmed during the performance of his or her work duties, then the organization may find itself liable to pay damages or compensation to the employee concerned. Employee safety in the workplace is covered by legislation; such legislation sets out the various obligations an employer has in protecting the health and safety of its employees. Get an in depth look on how workplace safety is being ensured over here http://whsacthelp.com.au/pricing-process/
For example, the legislation will usually include provisions requiring organizations to supply safety equipment to employees for relevant jobs. Therefore, if an organization fails to adhere to the provisions in the legislation and if an employee is harmed on the job, then the organization may find itself having to compensate the injured employee. In order to avoid such situations, a business can make use of whs consultants in Sydney (workplace health and safety consultants) who will advise the business in this regard.
If customers are injured as a result of using a business’ goods or services, then the injured party can have a legal claim against the business. Therefore, it is important for organizations to produce their goods and services while taking into consideration the safety of their customers. For example, a food manufacturer could be sued by a customer who suffered from a bad stomach as a result of consuming the manufacturer’s product. Thus, the food manufacturer should pay closer attention to the quality of the ingredients used in his products as well as aspects of the manufacturing process that could impact the quality of the food.
If an organization causes damage to the environment, they once again put themselves at risk of legal action being brought against them. In addition to the financial consequence of paying fines or damages as result of the legal action, the resulting reputational damage will affect the revenues of the business in the future as well. Thus, in conducting their operations, businesses should take care not to cause excessive environmental damage.