Because of a financial crisis, Isaavne, an automobile manufacturer, terminated 200 factory employees without prior notice. As a result, the labor union filed a suit against the company on the grounds of wrongful termination, and it had to pay a large amount as fine. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations.

Question

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The scenario best illustrates the effect of the legal component on organizations, as the labor union filed a suit against the company on the grounds of wrongful termination and the company had to pay a large amount as a fine. The legal component refers to the laws and regulations that affect organizations, and in this case, the company had to face legal consequences for its actions.

Because of a Financial Crisis, Isaavne, an Automobile Manufacturer, Terminated