Discuss the following statement: "Organizations look to the legal institutions to determine if they are acting in the best interest of society."

Formal laws and regulations establish relatively clear guidelines of how society expects a company to behave, but effective companies respond to more than simply the formal statement of a community's expectations. The most effective companies understand that the enactment of formal laws and regulations often lag behind public opinion by several years. Long before legislation is passed, communities communicate their expectations and attempt to hold organizations accountable for violations of these expectation.