Why do policy and regulatory changes occur?

Policy and regulatory changes often occur as a direct result of changes in legislation. This means that when the government or regulatory bodies modify existing laws or create new ones, this can prompt adjustments in policies at various levels, including those that organizations must follow. For example, newly enacted laws regarding environmental protections or labor rights can force businesses to align their internal policies to remain compliant, demonstrating how legislation is a primary driver of changes in the regulatory landscape.

While customer demand, technological advancements, and competition can influence policies and corporate strategies, they do not typically result in direct legislative changes. These factors may lead organizations to advocate for policy changes or adjust their internal guidelines but do not intrinsically alter the legal framework. In contrast, legislative changes invoke specific regulatory responses, making them a fundamental reason for policy shifts.