Legal Compliance in Business

Categories: BusinessLighthouse

In order for a business to succeed, management needs to identify and comply with the laws and regulations in their area. Management needs to keep in mind that laws vary from state to state. Additionally, as laws are constantly changing, management needs to regularly update their company standards in order to comply with these ever changing laws. In the case of Baderman Island, the company first began its renovations in 1988 (Virtual Organizations Portal, 2012) the lighthouse was purchased in 1932. Since 1988, the company had to modify or change their business procedures in order to comply with laws and regulations.

Legal compliance challenges that Baderman Island and other companies may have faced include employment laws, tax laws and regulations, property laws, finance laws and environmental laws. If a company does not comply with the laws and regulations in place, a company risks lawsuits, fines and possible company closure. Therefore it is imperative for a company such as Baderman Island to acknowledge the possible compliance challenges and reduce the liability of those compliances challenges.

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Legal Compliance Challenges

Baderman Island Resort, will be expanding its operations and we believe as a team that some of the legal compliance challenges the organization will encounter are linked to Title VII of the Civil Rights Act of 1964, the Equal Opportunity Act (Affirmative Action Act). The organization has to ensure the selection process and promotion process, the designing of the training and implementation of the training for the employees are taken into consideration to mitigate risk (Jackson & Mathis, 2008, Chapter 9, Training Human Resources).

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In addition to the selection, promotion and design of the training; Baderman Island Resort has to ensure that the 80% Rule is followed and that an environment of disparate impact and treatment is not created to reduce risk (Moran, 2008, Chapter 2, Selection). Baderman has also advised its employees and the public, that they will be hiring and training employees to speak Spanish and French to develop a better relationship with their international clientele (University of Phoenix, 2014).

A blog is being used as customer relationship management tool to identify areas of concerns and opportunities. The HR department and executive management team need to review what a bona fide occupational qualification means, in the areas that they are planning to expand and mitigate risk. The organization operates in the hotel and resort industry environment in order to have sustained growth; legal compliance challenges have to be understood, researched and communicated. The legal compliance challenges can have a direct impact on their cash flow, for example, if Baderman Island Resort was found guilty of race discrimination of Title VII Civil Rights Act of 1964, in 2006, the organization would be liable for paying $27,000 (Moran, 2008, Chapter 2, Selection). Discrimination and other non-compliance issues always present a possibility for legal ramifications, therefore management must constantly be aware of different methods to reduce liability.

Options to reduce liability

With the expansion of operations that Baderman Island Resort will be making, there will be a few different challenges that will take place and options that will help to reduce the liability of the company. Thorough and accurate training is one of Baderman Island’s primary concerns. Knowledgeable and impartial trainers not only help pave the way for new employees and continuous training, but they also represent the company and its values. Proper training perpetuates good employees with a good grasps of key concepts and knowledge. Improper training could lead to mistakes, production loss, liabilities, and possibly injuries. Hiring and training multi-lingual employees that speak Spanish and French is a great idea, to help broaden the company’s customer base. Management would need to ensure that all shifts maintain an appropriate number of multi-lingual employees, dependent upon business and shift requirements.

If the resort finds that additional languages become a majority including addition multi-lingual employees would be recommended for customer satisfaction and fairness. Customer satisfaction is always the ultimate goal of Baderman Island Resort; therefore feedback plays a critical role in implementing beneficial changes. Allowing employees to provide feedback for management review helps employees feel important and valued. Customer feedback provides an opportunity for management to spot possible weaknesses and areas in need of improvement. With three different methods of feedback and review: management, employee feedback and customer feedback management increase the opportunity for positive changes and increased repeat business and increased revenue.

How employment practice compliance systems could assist liability reduction By not only creating equal opportunity employment, but creating an environment in which every guest feels as they are special, Baderman Island Resort, desires to achieve harmony within the resort. We at Baderman Island Resort take great pride in our training system. This system of training allows us to ensure every employee is trained on how to treat others, better yet, how to react when situations arise. Our trainers have all been through rigorous standardized training to ensure every employee is equally proficient with our expectations. This training helps ensure compliance with Title VII of the Civil Rights Act. Training every employee with the same standardized system will help ensure everyone within the workforce is treated equally, regardless of race, sex, color, or national origin.

This also includes the hiring process. By providing continuing training, Baderman Island Resort can help ensure hiring practices are also followed. Each of our employees that are fluent in another language receives a bonus due to the additional assistance they can provide our guests. Those who currently employed or in the process of being hired are offered free language classes, which will result in Baderman Island Resort keeping a multi-cultural workforce. These employees will also receive the bonus once they have become fluent in the chosen language.

Continuing to educate our employees and hire the most qualified individuals will in a more responsible and caring workforce. A vast portion of Baderman Island’s success and lifespan is a direct result from complying with the laws and regulations in their area. The fact that Baderman Island has expanded since first opening its doors in 1988 and it has plans to continue to expand, reflects the constant attention to the changing laws and regulations. Baderman Island will continue to be successful if management continues to analyze and reduce compliance challenges.


  1. Jackson, J.H., & Mathis, R.L. (2008). Home Resource Management (12th ed.). Retrieved from The University of Phoenix eBook Collection.
  2. Moran, J.J. (2008). Employment Law. Employment Challenges in the Business Environment (4th ed.). Retrieved from The University of Phoenix eBook Collection.
  3. University of Phoenix. (2014). Baderman Island Resort [Multimedia]. Retrieved from University of Phoenix, HRM420 website.
  4. Virtual Organizations Portal., Apollo Group, Inc., & Baderman Island. (2012). eCampus: Login. Retrieved from
Updated: Jul 07, 2022
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Legal Compliance in Business. (2016, Aug 19). Retrieved from

Legal Compliance in Business essay
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