The Impact of Legislation
What obeying the law does to a business: the costs of complying through training, equipment and wages, the consequences of breaking the law, and the benefits of a safe, fair workplace and customer trust.
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What obeying the law costs and earns
Laws protect workers and customers, but keeping to them is not free. A business has to spend money and time to comply, yet breaking the law can cost it far more in fines and lost trust. This module works through the costs of complying, the consequences of not complying, and the benefits a business gains from following the law.
Impact words to know
Learn these before you weigh up the effects.
The cost against the payoff
Following the law has a price, but so does breaking it.
Weigh cost, benefit and consequence
In the exam, weigh the cost of a law against its benefit, and remember the price of ignoring it. Obeying a law costs a business money and time, spent on training, equipment and better wages, but it buys a safe, fair workplace and the trust of customers. Ignoring the law risks fines, court and lasting damage to reputation. Give a cost, a benefit and a consequence of not complying, then judge overall.
Match the term
- compliance
- non-compliance
- compliance cost
- reputation
- following the laws that apply
- failing to follow the law
- the money and effort spent obeying the law
- how the public sees the business
Match the effect
- training staff in safety
- being fined by a court
- a safe, fair workplace
- losing customer trust
- a cost of complying with the law
- a consequence of not complying
- a benefit of following the law
- damage done by breaking the law
What if the law is broken?
What is a likely consequence if a business does not obey the law?
- It can be fined and lose its reputation
- It saves money with no risk at all
- It automatically gains more customers
- Nothing ever happens
True about the impact
Select the TWO true statements about the impact of legislation.
- Following the law can cost a business money on training and equipment
- Not complying can lead to fines and court
- Obeying the law brings a business no benefits at all
- Breaking the law always improves a business reputation
Total the training cost
To meet safety law, a firm spends 400 pounds training each of 5 staff. Multiply the cost per person by the number of staff to find the total training cost in pounds. What is the answer?
Order the response
Put the way a business responds to a new law in order, earliest first.
- A new law that affects the business is passed
- The business works out what it must change
- It spends money and time to comply
- It gains a safer workplace and avoids fines
Complete the rules
Following the laws that apply to a business is _____. Failing to follow the law is _____. The money and effort spent obeying the law is a compliance _____. How the public sees a business is its _____.
Spot the costs of the law
Tap the TWO costs to a business of obeying the law.
- paying for staff safety training
- buying safer equipment
- gaining loyal, well-treated staff
- earning the trust of customers
Judge the impact
Read each case and choose the best answer.
- A firm pays for new guards on its machines to meet safety law. What is this?
- A business ignores employment law and is taken to court and fined. What is this?
- How can following the law actually help a business in the long run?
Explain the impact of the law
Explain the impact of legislation on a business, weighing the costs and benefits.
- Explain the costs of complying with the law
- Explain the consequences of not complying
- Explain the benefits of following the law