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characteristics of the environment
in which it operates. 

 
Government policy
influences the economic environment, the framework of laws, industry structure and 
certain operational issues. Political instability is a cause of risk. Different approaches to the 
political 
environment
apply in different countries. 
International trade
is subject to a further layer of international 
law and regulation. 

 
Much legislation (and not enough economic knowledge) has been aimed at the idea of 'employment 
protection'. As a result, all forms of 
termination of employment
must be treated with great care. 

 
Privacy 
is the right of the individual not to suffer unauthorised disclosure of information. 

 
The (UK) 
Data Protection Act 2018 
protects individuals about whom data is held. Both manual and 
computerised information must comply with the Act. 

 
The 
UK Data Protection Act
includes six 
Data Protection Principles
with which data users must 
comply. 

 
People should be able to be confident that they will not be exposed to excessive risk when they are at 
work. This means that risk and danger must be actively managed. 

 
A contract is a legally binding agreement. 

 
Population affects an organisation's supply of labour and hence its policies towards recruiting and 
managing human resources.

 
Organisations are part of the wider social environment 

 
Information systems and information technology have played a significant role in the development of the 
modern business environment, including encouraging the