This week we are going to take a look at the various kinds of business laws effective leaders learn to understand, because in truth, today’s managers do not have the luxury of viewing the law from rose colored lenses. In fact, most successful business leaders in the modern era have a great understanding of the law’s parameters, application, and influence, because they know that not only will it serve them well in their business lives, it will also help them in their personal lives.
Large corporations have in-house legal and business affair departments with access to the expertise of many qualified attorneys. Many smaller businesses, however, typically function with little knowledge of the law due to their minimal access to legal counsel. This makes having a legal background even more valuable in the business arena.
The fact is, that any institution will benefit greatly by employing individuals, at every level, who have at least the basic comprehension of legal policies, as well as a firm grasp of essential laws. This is a component that can help them identify and assess potential legal issues before they turn into a threat. In other words, a business professional that can prevent a situation or conflict from developing into a lawsuit, becomes a valuable asset because they have the ability to save a business from the embarrassment and costs involved with litigation. Furthermore, should they become involved in a dispute, they are more capable of resolving the controversy outside of the legal system by implementing different techniques such as mediation, negotiation, or arbitration. Plus, if leaders are faced with having to engage attorneys, they will already comprehend many of the legal concepts and vocabulary to communicate effectively with their counsel. In conclusion, managers that have a firm grasp on business laws are in a better position to maintain an ethical and lawful work arena.
That’s it for today’s post. On Wednesday, we will continue this discussion on business law and identify the various types within the legal profession. Until then … stay organized!
Change is the law of life. And those who look only to the past or present are certain to miss the future. – John F. Kennedy
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Seaquist, G. (2012). Business law for managers. San Diego, CA: Bridgepoint Education, Inc.