Legal responsibilities of companies
Every company must make a profit! It is its main purpose. If the company isn’t successful, it won’t last so employees will lose their jobs. Also, every company has a responsibility to give a monthly salary to every employee. All these can be categorized as the economical responsibilities. Beside them, companies have legal, ethical and philanthropic responsibilities.
Legal responsibilities of every company are requirements that are defined by law. Depending on the country, those laws may be different, but their main purpose is always the same. Companies must obey those laws. Legal responsibilities often vary from the labor law to the environmental law. This means that every employee must have his rights. He must have adequate working conditions, and that company must provide him health insurance and pension fund. Also, employees must be protected of verbal and physical assaults. Companies must obey environmental laws as well. In the last years, many countries updated their environmental laws, so now they are much tougher. The basis of this law is to reduce company’s waste and pollution! Paying taxes is another company’s responsibility. Depending on a country, a company must pay from 20% to 25% tax on their profit. In some countries, Austria, for example, companies can use that money for development. In that case they don’t have to pay tax! Beside those responsibilities, every company must provide maternity relief and holidays to employees. In a case of maternity relief, there are several laws that affect on it. For not obeying one of these responsibilities, companies can be penalized! In most cases, they are fined!