The general environment — Legal conditions
Laws and regulations are intimately tied to politics. Elected officials and the bureaucracy that works for them are ultimately responsible for making legislation; that is, for creating and changing laws. Regulations are made under conditions established by legislation and tend to deal with more minor or more specific issues than legislation.
Laws and regulations govern what organisations can and cannot legally do. They spell out their obligations to consumers, partners, suppliers, government authorities and society as a whole.