Legal compliance refers to the act of ensuring that an organization or individual is abiding by all laws, regulations, and policies governing their activities. This includes adhering to local, state, federal, and international laws, as well as industry-specific regulations. Legal compliance is critical for avoiding legal penalties, lawsuits, and reputational damage. It involves staying up-to-date on changing laws, implementing internal policies and procedures, and conducting regular audits to ensure compliance. Companies often have legal compliance officers or teams dedicated to ensuring all aspects of the organization are in compliance with relevant laws and regulations.