Laws and Policies
write at least 400–600 words that will respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear and use examples to reinforce your ideas:
Organizations must abide by federal, state, and local laws and regulations. Breaking the law may have consequences such as fines, lawsuits, and even shutdown of corporate facilities. To maintain compliance, organizations develop policies that guide the ethical behavior of employees. In order to explore the differences between laws and policies, please discuss the following:
Describe the difference between a policy and a law and provide an example of each.
Does a company policy override a local, state, or federal law or does a local, state, or federal law override a company policy? Provide justification for your reasoning.
Research and describe an example of an incident when a company broke a federal, state, or local law. What were the consequences of breaking the law? What policies did the company change because of the incident?
Sample Solution
Laws vs. Policies: Guiding Employee Behavior
Laws vs. Policies:
- Laws: These are formal rules established by governing bodies (federal, state, local) that are enforceable through a legal system. They are typically broader in scope and carry the potential for penalties like fines, imprisonment, or legal action. Examples include labor laws, environmental regulations, and safety standards.
- Policies: These are internal guidelines developed by organizations to set expectations for employee behavior and decision-making. They are more specific to the organization's context and often build upon existing laws. While violating a policy may result in disciplinary action within the company, it doesn't carry the
Full Answer Section
- egal repercussions of breaking a law. Examples include dress codes, harassment policies, and data security protocols.
Precedence:
- Laws always take precedence over company policies. In case of conflict, adhering to the law is paramount, regardless of what the company policy dictates. This ensures organizations operate within legal boundaries and protects employees' rights.
Example: A company policy might discourage taking short breaks, but if a state law mandates 15-minute breaks every two hours, the law supersedes the policy.
Law-Breaking Incident:
- Volkswagen Emissions Scandal (2015): Volkswagen, a German automaker, rigged their diesel engines to cheat on emission tests. This violated the US Clean Air Act and resulted in:
- Fines: $2.8 billion in criminal penalties and $14.7 billion in civil settlements.
- Recall: Millions of vehicles were recalled for repairs.
- Leadership Changes: CEO Martin Winterkorn resigned, and other executives faced criminal charges.
- Policy Changes: Volkswagen implemented stricter compliance measures, invested in electric vehicles, and reformed their corporate culture.
Conclusion:
Understanding the distinction between laws and policies is crucial for organizations to operate ethically and legally. While policies guide internal behavior, they must never contradict or undermine existing laws. Law-breaking incidents can have severe consequences, impacting finances, reputation, and even employee well-being. Companies must prioritize legal compliance and constantly adapt policies to reflect evolving laws and regulations.