Regulatory Impacts on Businesses

Compliance now sits at the heart of corporate strategy for India Inc, reports The Economic Times. Indian firms with international exposure are embedding compliance into core decision-making. Reasons? Rising tariffs, carbon taxes, localisation norms, labour laws, and data regulations are reshaping costs, pricing, and market access. Legal experts describe this shift as the start of a new era of “regulated strategy”. “Managing regulatory complexity has become a strategic imperative across geographies," says Koushik Chatterjee, CFO, Tata Steel. The company’s Netherlands operations posted an operating profit of €210 million from April-Dec FY26 period after absorbing €150 million in carbon emission-related costs and €50 million from US tariffs. “Without these regulatory-linked costs, operating profit would have topped €400 million, showing how policy has weighed on the bottom line,” he adds further. Smaller exporters are facing similar pressures, point out Pankaj Chadha, Partner, Jyoti Steel Industries. Legal accountability is also tightening at the same time. Non-compliance can expose directors to civil and even criminal liability, in some cases on a strict liability basis. “Gone are the days when Indian companies treated regulatory issues lightly. With increased regulatory scrutiny, mandatory self-reporting obligations, and the risk of stringent penalties, compliance is now one of the most critical functions,” notes Madhavan Srivatsan, Senior Partner at Emerald Law. How do you think this will influence law and governance-related opportunities? Share your thoughts in the comments below. ✍: Nakul Ghai 📷: Getty Images Source: The Economic Times: https://lnkd.in/dpHwfe7p #Law #Governance #Business

Tariffs will not solve America’s copper problem. We need real progress in recovery and recycling, something I address in my new piece for EE Times | Electronic Engineering Times on a growing challenge for our industry.    The current 50 percent tariff raises costs for U.S. PCB manufacturers, especially since up to 60 percent of copper foil is etched away during fabrication and never reaches the finished product. At the same time, the country lacks the secondary smelting capacity needed to recycle the copper already here. In the article, I outline several actions that can help:  • Build modern secondary smelting and refining in the United States • Create consistent national rules for copper-rich materials • Support companies that recycle copper from PCB processes • Incentivize production of specialized copper products used in electronics • Engage industry leaders to map the economics and permitting needed for new facilities   If you work in electronics manufacturing or supply chain, I hope you will take a moment to read and share your perspective. https://bit.ly/4pimH1k

Financial services spend the most on AI and extract the least value from it. Financial services firms lead global AI spending, yet adoption remains low because operating models have not caught up with technical capability. Capital is being spent on models while workflows are still designed for manual reviews and slow approvals because governance has not evolved. The risk is not unused software but delayed decisions that slow revenue and increase compliance cost. Ignoring this keeps institutions operating at higher latency. AI systems now generate real-time signals in areas like fraud detection and customer targeting because data access and computing power have improved. Organizations struggle to act on these signals because approval structures and trust models were built for periodic reports and not continuous decisions. This creates a gap where insight exists but execution stalls. This means: value erodes before it reaches the customer or the balance sheet. AI adoption doesn’t succeed when added to unchanged workflows because people become the constraint instead of the technology. One practical way to begin is to choose a decision that currently takes days, redesign the approval path to work in minutes and avoid using AI where accountability cannot be clearly assigned. #AIInBanking #FinancialServices #AIAdoption #EnterpriseAI #OperatingModel #WorkflowDesign #DecisionLatency #AIGovernance #BusinessOutcomes #DigitalOperations #AIExecution #Leadership

Over the years at 1mg, I’ve sat through many compliance reviews. One question I always asked our legal team was simple: “What is the personal exposure here?” For a long time, the answer often involved criminal liability for directors. That had a very real impact. Governance stopped being abstract. Controls weren’t checklists. They felt personal. Over time though, the system has evolved. Many procedural lapses that once carried criminal consequences have now been reclassified as civil offences with monetary penalties. Accountability remains — but the penalties are more proportionate to the nature of the lapse. This feels like a sign of a maturing regulatory framework. Large companies are complex systems. Not every procedural gap needs criminalisation. When intent isn’t malicious, proportionate civil penalties make sense. This maturation is welcome! For founders and leaders, however, the mindset shouldn’t change. Design governance as if responsibility is personal. The framework may evolve. Discipline cannot. #Tata1mg #CorporateGovernance  

💡 PFAS: Hidden chemicals in everyday products are creating new challenges for manufactures. PFAS regulation will not just be a compliance issue. It will reshape how products are designed and materials are sourced. 🔬 During my visit to our PFAS expert, Klaus Bandel, in Cologne, I was reminded how complex this challenge really is. Detecting trace substances requires both advanced analytics like mass spectrometry and deep regulatory know-how.    The tightening web of PFAS bans is rapidly becoming a challenge for an ever-growing number of companies. Consider recycled materials: Manufacturers want to increase recycled content in their products, yet this well-intentioned move can unintentionally introduce PFAS contamination. These "forever chemicals" often hide in older materials, slipping unnoticed into new products via recycling. What starts as a resource-saving measure can turn into a chemical liability. 🌍 Sound unlikely? It’s real. PFAS – per- and polyfluoroalkyl substances – are everywhere thanks to their water-, grease-, and dirt-repellent qualities, they turn up in pizza boxes, rain jackets, non-stick pans, upholstered furniture, blister packs, medical needles, mascara, eyeliner, even dental floss. Around 500 PFAS compounds are estimated to be in use worldwide. 💥 The challenge: They’re highly persistent and may pose serious risks to ecosystems and human health. ⚖️ The upshot: mounting regulation and outright bans are gaining momentum. The EU is advancing one of the most comprehensive restriction proposals in the history of the REACH framework, aiming to ban PFAS in all non-essential applications. Just recently, the EU restricted the use of PFAS in toys. At the same time, national bans are moving ahead: France already banned it in cosmetics, ski wax, shoes & apparel, Denmark in clothing, footwear & pesticides.  🏭 Business Impact: Manufacturers need granular insight into the substances in their products. Without rigorous analysis, misjudged risks can trigger costly recalls and reputational damage. At TÜV Rheinland Group, we help companies achieve this transparency—combining lab precision with practical guidance for quality managers and product developers. PFAS will remain part of industrial reality for years. The question isn’t if regulation will tighten, but whether companies are ready. Responsible product development is a decisive competitive factor. 👉 Learn how TÜV Rheinland helps companies manage PFAS risks: https://lnkd.in/eppwzc4B #tuvrheinland #PFAS #foreverchemicals #QualityAssurance #ProductSafety 

A case law every IT professional must read, understand and implement. Varun Tyagi, a skilled software engineer, worked on the POSHAN Tracker project, a high-priority initiative of the Government of India, through his employer, Daffodil Software Pvt. Ltd. Over time, thanks to his dedication and the company’s own training, he was promoted and made a lead developer on the project. After serving his full notice period and resigning properly, Varun received an offer to join Digital India Corporation (DIC), the very agency for which he was already contributing his work. This was a natural next step in his career. He accepted the offer and joined them. But what happened next is something many IT professionals never expect. Varun was dragged to court by his former employer. They claimed he had violated the non-compete clause in his employment agreement. According to the company, Varun couldn’t work with any of their clients or business associates, even after leaving the job, for the next three years. They claimed he could misuse confidential information, even though all intellectual property rights of the project belonged to DIC, not the company. The trial court sided with the employer and passed an order restraining Varun from working with DIC. Imagine leaving your job legally, only to be told by a court that you can’t join your new employer. Varun didn’t give up. He challenged the order before the Delhi High Court, and justice prevailed. On June 25, 2025, the Delhi High Court ruled in Varun’s favour and quashed the injunction. The court made it clear: 1. Any clause that restricts an employee from working elsewhere after resignation is void under Section 27 of the Indian Contract Act, 1872. 2. Companies cannot impose post-employment restrictions on someone’s right to earn a living. 3. Confidentiality concerns cannot be misused to block fair career progression. 4. Non-compete clauses that extend beyond the term of employment have no place under Indian law. Have you ever read the non-compete clause in your employment agreement? Chances are, it’s already there. In fact, almost all IT companies include such clauses in standard offer letters, and most employees, especially freshers and juniors, sign without knowing the legal consequences. This is where exploitation begins. Companies bank on your silence, your fear of legal trouble, and your unawareness. But the law is clear. Your right to earn, to switch jobs, and to grow cannot be curtailed just because you once worked with a client. Employees should read, question, and understand your employment terms. And more importantly, should know that the law is on your side. Your career is yours, not your former employer’s property. #ITEmployees #LabourLaw #NonCompeteClause #EmployeeRights #EmploymentLaw #DelhiHighCourt #RightToWork #KnowYourRights

If you DON’T work at a nonprofit - this post is for you 🫵 You’ve probably heard about funding freezes by the federal government. You’ve also heard about 1,000 other proclamations, orders and lawsuits - there’s an overwhelming deluge right now. But here’s what this practically means for nonprofits that I guarantee you’ve supported before and care about their mission. I spoke with a community serving nonprofit yesterday that was notified that 20% of their funding - which comes from a variety of federal contracts - would be terminated. These aren’t general operating grants, or prospective future funding. It’s millions of dollars in program-specific multi-year contracts that are in process and already have funds spent, people hired, etc. These are life-saving healthcare services for marginalized and underserved communities that are most at risk. The reason? Executive orders “banning DEI” are worded so broadly that organizations serving marginalized groups can not exist and comply. The result? Expensive and distracting legal proceedings taking more resources from organizations already faced with massive funding shortfalls. Which means an even faster deterioration in the services available to the people and communities most in need. What does this mean for you? Regardless of your political views, this arbitrary “changing of the rules” mid-contract is not how we run a “business friendly” society. And especially if you’re cheering on the “cost cutting” - if that’s what we’re calling this… - then you personally need to show up for these organizations. We need an extraordinary increase in philanthropy this year to avoid losing thousands of critical organizations - and causing sweeping harm to the most vulnerable in our communities across the country and around the world. Are you feeling helpless, concerned, activated or maybe even a little responsible? Wondering what you can do? 1️⃣ Reach out to nonprofits you care about and ask if/how they’re affected and what they need. 2️⃣ Give more - can this be your biggest giving year ever? 3️⃣ Listen - you might be getting a lot of alarmist outreach from nonprofits. Pay attention. They likely aren’t exaggerating with how dire the situation is. They really do need your support now more than ever. 4️⃣ Don’t wait - do not wait until December to do your 2025 giving. Don’t wait to be asked. Just give right now. 5️⃣ By god if you have a DAF… Use it now. This is the rainy day - we’re talking survival. I guarantee you will feel better by getting more engaged with your giving. Be a part of solutions and a part of a community. We are going to get through this together - I really do believe it ❤️ If you’re wondering where & how to support - shoot me a DM. #nonprofit #philanthropy #fundraising 

I want Britain to be the best place in the world to turn ideas into global companies. That means backing exceptional people with a range of support to start, scale and list their businesses here in the UK.  Firstly, the British Business Bank will invest £5 billion to help UK companies scale, crowding in private capital and supporting firms through high-risk phases like the “Valley of Death” - the critical period when innovative businesses have proven their ideas but are not yet profitable, and often struggle to access the finance they need to grow. This support will help more firms scale, hire and export from the UK.  Secondly, Innovate UK's new £130 million Growth Catalyst will provide grants and hands-on support to science and tech firms, building on a past programme that turned £156m into £1.66bn of follow-on investment, an almost 11x increase.    Thirdly, we are doubling eligibility for key schemes like the Enterprise Management Incentive and raising investment limits under the Enterprise Investment Scheme. This will make it easier for founders to attract and retain talent and for investors to back UK companies.  And when those companies choose to list here, they will benefit from a world-first three-year holiday from stamp duty on share tax.    This week I welcomed Matt Clifford from Entrepreneur First — an organisation that backs exceptional individuals to build companies from the ground up and has helped create businesses with a combined worth of over $13bn. We discussed the vital role entrepreneurs play in our economy, the emerging opportunities in areas such as artificial intelligence, and what more government can do to keep Britain one of the best places in the world to start and scale a business. When we back talent, we back the future - boosting opportunity, supporting jobs and growing our economy.

A powerful ‚must-read‘ statement co-authored by former EU Commissioners on the Digital Markets Act (#DMA) and the Digital Services Act (#DSA), in response to sanctions by the current US government. Some extracts: “European countries have different histories that shape how we think about freedom and responsibility. We have fought for our freedoms [..] and these struggles taught us concrete lessons about what happens when power goes unchecked, when manipulation replaces dialogue, and when space for independent thought is systematically eroded.” “We have learned [..] that freedom requires more than the absence of government intervention. It requires positive conditions such as education, access to diverse sources of information, protection from manipulation and exploitation, and institutions that check concentrated power. Digital platforms are now among the most powerful institutions in our societies. The question is not whether they should be subject to rules, but whether those rules serve democratic values or merely private interests.” DMA and DSA ”were not rushed through in a moment of panic. They were passed after nearly a decade of attempting other approaches [..] when it became clear that self-regulation was insufficient.” “We did so because we recognized an uncomfortable truth. We have allowed ourselves to be captured by big-tech platforms. [..] A few [..] companies mediate most of our digital lives, from our communications and access to information to our commercial transactions. This dependency is not natural or inevitable, and it poses risks that we can no longer ignore.” “Europe must become more independent in the digital realm. That means enforcing our own laws with determination and consistency.” “The accusation of censorship ignores what is at stake. There is a profound difference between regulating infrastructure and regulating speech. When we require platforms to be transparent about their algorithms, to assess risks to democracy and mental health, to remove clearly illegal content while notifying those affected, we are not censoring.”   The current cooperation between the U.S. government and its Big Tech supporters - including state sanctions against foreign institutions seeking to mitigate the harm caused by digital dominance to democracy - only reinforces the risks and needs described in the article. Ultimately, it is not only in Europe’s interest to establish robust checks and balances. #CompetitionMatters

How can 1 meter be worth €20? Recently, the French CRE proposed a change in how we classify AgriPV systems, shifting from considering them as ground installations ("Sol") to treating them as buildings ("Bâtiment"). It may seem like a small change, but the impact is significant—PV buildings are eligible for an additional €20/MWh compared to ground PV! While 2-meter AgriPV systems aren’t much more complicated than standard ground projects, things get a bit trickier with 3- and 4-meter structures. A 4-meter structure isn’t as challenging to build as a traditional building, but it does come with higher costs for installation (CAPEX) and potentially ongoing maintenance. According to the CRE, any PV structure over 4 meters should be considered a small building in future French tenders. That makes sense, but it also creates an interesting dilemma. Just the other day, we were discussing this with a French developer who was wondering, “Should I go for a lower 3-meter structure, or is it better to invest in a 4-meter one?” From an agricultural perspective, the taller option offers more space for machines and crops underneath. On the financial side, while a 4-meter structure will be more expensive upfront, it qualifies as a "CRE Building" instead of a "CRE Ground,” allowing the project to take advantage of the additional €20/MWh incentive, which can significantly improve overall returns over 20 years of energy production. So, the big question is: do you prioritize saving costs now with a shorter structure, or invest in the taller option that could pay off in the long run?