The implications of legal penalties can be severe and far-reaching:
- Financial Impact: Fines and compensatory damages can significantly affect a company's finances. - Reputation Damage: Legal issues can harm a companyâs reputation, leading to loss of customers and partners. - Operational Disruptions: Injunctions and loss of licenses can disrupt business operations. - Employee Morale: Legal troubles can affect employee morale and retention. - Strategic Setbacks: Time and resources spent dealing with legal issues can divert focus from strategic initiatives.