Legal Issues

In the corporate governance, the boards of directors play a leading role of reforming the firm. The legal obligation of the directors in todays business in the reforms proposal are emphasizing on the legal acts of directors rather than their ethical responsibility of the directors. Legal reforms without the emphasis of ethical obligations lead to non-effective results (Riordan manufacturing, 2010). Despite the fact that the ethical role of the directors is critical, directors have the overall responsibility for the maintaining the ethics and compliance program as well as legal acts within the cooperation. Overall ethical and legal environment of the firm is characterized by the directors tone, and reinforces these acts in order to provide a good overview of the business financial performance.

Employee Law
The law for the employment and human resources is often a difficult area in dealing with the business. It is also the area that has employee challenges in regard to ethical issues despite the fact they dont notice any shortcomings of their ethical acts (Roszovsky, 2008). Since prevention is cheaper than handling the effects of unlawful legal acts, the interest of the corporate should rely on the fact that employees are informed on the latest development legal laws and have immediate access to them when in need .

There are several acts several employee Acts which every employee should be aware of, such as the  Employee Retirement Income Security Act of 1974 (ERISA) which set minimum standards for employees pensions as well as health plans in the private industry (Roszovsky, 2008).

Management Behavior
By reflecting the importance of the type of behavior that every successful manger should demonstrate in order to maintain a stable corporate, the following legal acts should be performed to the employees
Equitably rewarding the employees for performing their jobs effectively
Ensuring that the employees work in a collaborative manner with the managers.
Creating a conducive environment for a performance for productivity of the corporate.

Enterprise and product responsibility
Since consumers are interested in the ingredients or rather information about the product safety measures, the effects of the corporate products on health, the quality of the product, the liability of the product as well as its warranty, the development of the product, and the manufacturing process of the product. This information should be accorded to them whenever they are in it of it. More so, the interest or needs of the consumer from the corporate could include the information about manufacturing processes, that is changing goods from raw product to finished goods, the condition of the place of manufacturing, how the standards of the products are met. Whether the consumers are limited to present or future or include also the former consumers who have a stake in the product liability as well as the product warranty issues arising from the past purchases (Riordan manufacturing, 2010).

The issues relating to economic development should also be put into consideration. This includes consideration for tax base as well as other revenues, the safety as well as the security risks knowledge on consumer complains about corporate activities, and about how to handle the corporate matters with the community on matters regarding to protection of human rights, since such relationship could result to introduction of new product by the corporate.

The corporate also includes various stakeholders such as corporate shareholders as well as the banks. Information should be shared with these institutions in order for them to make a sound judgment about the future opportunities, risks as well as the legal liabilities. Therefore, the responsibility of the corporate is to provide the knowledge on overall strategy of the whole enterprise, its compliance with the laws as well as regulations according to the business laws stipulated, and its risks and reputation management (Roszovsky, 2008).