The reputation of any firm is sensitive to its market. Firms with superior records have a higher competitive capacity as compared to those whose dealings with employees is in doubt. Firms that observe the labor laws in Virginia have recorded high profits and sales. This is associated with the fact that employees are the firms’ ambassadors in to the outside world.
Harassment cases will always attract hefty fines and compensation claims. The claims become a liability to the firm against its budget (Kearns 2009). This reduces the production and the expansion capacity in relation to its competitors. These expenses may be experienced in terms of time spent in courts and the whole process. They may also extend to the cost incurred in trying to handle the media pressure incurred.
The firms embroiled in legal procedures usually lose its professionals and experienced employees, if the court rules against them. In observance of the Virginia Labor Law Acts state that an employee found guilty of any form of abuse should be relinquished off their duties and sometimes imprisoned. The loss of human resource usually interprets to a major blow on the firm and plays to the advantage of the competitors. The loss of the experienced technicians and managers may interpret to a new cost of training the replacement personnel. In the mean time, the quality of products and efficiency is interrupted.
Possible Outcome of Reported Abuse
Employees who report abuse are always headed for heavy compensation. The compensation usually comes from the firm’s pockets. The effects of such unplanned expenditure may be devastating to the firm. In case the number of complaints are more than one, then the compensation may be hefty and beyond the capacity of the firm. This would interpret to collapsing of the firm due to its inability to meet its liabilities. This may be accelerated by the fact that the firm may experience low sales due to poor public image. The image may go ahead to affect the will of the investors who will sway away from the company`s securities. This factors combined will the free will collapse of the firm.
The possibility of the workers setting up a strike is high, if the trend is continuous and uncontrolled. In such an instance, the firm may experience closure or delayed delivery. In case the strikes turn violent, there may be destruction of property, loss of lives or injuries. This will go ahead to incur heavy losses for the firm. In return, this may adversely affect business.
Firms with a reputation of abuse are avoided by potential and productive employees. The employees opt for other firms with a clean image and reputation. The lack of employees by a firm affects its production line and capacity (Bogardus 2004).