Why is awareness important?

Every business is impacted by the environment in which it operates. By environment we mean a set of External and Internal factors which business need to constantly manage. To be succesful in long run business need to minimize associated risks and convert the threats to oppurtunities therby benefiting the entire stakeholder chain.

Administrative law is made for the wellbeing of society as a whole and to ensure smooth functioning of any government. Their major focus is on corporates as the latter is directly responsible for the provision of services to citizens.

If corporates ignore administrative laws this will not only tarnish their brand value and image but will also attract hefty fines and penalties or even result in temporary or permanent closure of business.

Three activities that fall under the control of regulatory agencies :-

1) Brokers and Intermediary operating in stock market are subject to the SEC regulations in US ( SEBI in India) to check fraudulent activities and protect the interest of investors. Any ignorance of securities law attract serious penal provisions.

2)Food and drugs business are regulated under USFDA in US ( Minstry of chemical & fertilizers & Ministry of Food processing industries in india).

3) Pollution control boards for checking emissions and effluent treatments. Eg. Central & State pollution control board in india.