Laws and regulations exist to define what unethical behavior is.

Describe how regulations, laws and standards help organizations avoid costly lawsuits.
To define unethical conduct, laws and regulations are in place to give clear guidelines to individuals and organisations that need to be followed in order not to suffer any legal consequences or reputational harm. Organizations can avoid costly lawsuits with these laws and regulations. They provide a set of guidelines that must be followed when making decisions about equal employment opportunity, harassment, discrimination sexual misconduct or whistle-blower protection. Organizations can also offer training to staff on relevant topics, such as how employees understand their rights and what they should do if the policies aren’t followed. Businesses can reduce their exposure to risk by ensuring that these regulations are being enforced through internal investigations as necessary. This will help promote ethical values and a positive work environment.