Role of Law in Business and Society
Broadly speaking, laws are binding practices or customs of the community; a rule of action or conduct enforced, recognized and prescribed by the controlling authority. The business and society have laws that apply for their development. Businesses, for instance, partnerships and sole proprietorships and guided by the law among other factors into a success. Laws play an integral role in business ad societal development of the society and business. Laws regulate social behaviour, which makes the society run efficiently. In addition, laws supply expectations and ethical standards, while providing efficient rules of conduct, procedures of enforcing the rules and channels of dispute resolution. Furthermore, law assists in peacekeeping among individuals and business stakeholders, regulating power of the government over businesses and society and promotion of freedom rights in the society, facilitating the realization and planning of reasonable expectations (Simon, 1999). In a nutshell, law is necessary for maintaining of personal freedom, peace and social justice.
Laws serve numerous roles in the business and societal word. Law is classified into three.
Criminal law– refers to the law that crimes are prosecuted by the public to the governing authorities. Civil, however, refers to instances in which private parties may prosecute one another for imagined or real wrongdoings. For example, hitting someone with a car is a criminal law while in a civil lawsuit; the person hit may opt to seek compensation by suing the driver of the car.
Substantive and procedural law– substantive laws mention the social duties and rights of people during procedural law and guidelines by which legal authorities or states deal with substantive law. For instance, hitting someone with a car and taking off is a substantive law while procedural law will mention the way the state would deal with the case.
Public and Private Law– public law deals with the guidelines between individuals and the state while private laws are guidelines through which
Perhaps this is the most crucial role of law in business and society. The predetermined laws provide guidelines for moral conducts to ensure there is peace in the society and the business and all the stakeholders. Laws assist in dispute resolution amongst the conflicting business and society parties. Today, according to Simon (1999), the act of peacekeeping is a challenging task with the volatile society and business world. Businesses are highly volatile for private and civil disputes which the law helps in bringing a remedy for such. During disputes, the involved parties seek remedy through lawsuits or use other forms of dispute resolution. Through any of the procedures, both the people involved in the dispute will achieve the desired result.
Checking Government Power and Promoting Individual Freedom
The government is obligated to question the rights of speech of various businesses similar to the individual right of speech. While seeking to conduct this duty, the government must figure out if the owe the businesses a duty of protection of the society and businesses from some unethical speeches. The government, therefore, plans, facilitates and enforces and upholds reasonable expectations deals with contract laws guiding businesses and society. A contract is a document containing an agreement recognized by the law as a duty with obligation. Businesses and government often draw agreements regarding their effectiveness and provision of favorable business and societal environment.
Promotion of Entrepreneurship
Business only exists in the world which is fair. The law motivates companies and gives their incentives to innovate and become productive. Entrepreneurs often take advantage of the protection by the law when transacting their business activities. Through the protection of the law, business people can invest in businesses and the law offers protection against the properties against any unethical outcome such as theft and forceful cornification of the inventories. The law assists entrepreneurs raise to full structure and condemn any act of inefficiency and slouching in the business. Furthermore, law is viewed as an instrument of necessity. It dictates the business created in the society and how the business is run. Law also helps to prevent business and societal inequity or bad outcomes necessary for effective and efficient running of business entities.
The law advocates for moral balance in the society. The role of law in the society Is to set up moral values to preserve human rights. The law sets rule of games and defines how the business and society should be run as well as setting limits of the business. This will in turn lead to safe and fair business and interpersonal transactions and relationships.
In the organization I worked for, the law helped, protected and guided me through the whole process of work. Sometimes people can be smart and become difficult to deal with but the law offers protection against negative consequences of such individuals. To me, law is like a God in the Old Testament. It is easily understood and maybe inconsistent sometimes. The law helped keep things running in the organization and prevented major meltdowns and created boundary of systems for effective operation of the organization.
The world states of the legal system are complex and intricate. They acknowledge the role of law in society and business. Rules, enforcement of the rules and consequences of breaking them, are vital for the society and business to ensure fair, successful and orderly. However, without law, anarchy would have eroded the world. In truth, law can be termed as a necessary evil. It is comparable to a football referee that keeps things fair. The referee may somehow interfere with thee game and in the process upset some players and fans, however, it is necessary because it keeps the game alive.
Simon, J. (January 01, 1999). Law after Society. Law & Social Inquiry, 24, 1, 143-194.
Key issues and developments for business. (January 01, 2000). European Policy Analyst, 3, 13-76.
(2007, 04). Roles and Functions of Law. StudyMode.com. Retrieved 04, 2007, from http://www.studymode.com/essays/Roles-And-Functions-Of-Law-111193.html