I was welcomed to lecture on “Value of Law for Companies”. My talk centred on how the law can be utilized as a tool for development.
Numerous see the law as a set of “dos and do n’ts”. The basic view is that the law is a set of guidelines, policies and treatments to be observed or deal with the effects. While this is partially real, the law is much broader.
The law forms a huge part of any organization environment and, for that reason, it is important for a service to comprehend the elements of the environment they run in.
The legal location covers international, local, nationwide, county and sector environments.
Foreign financial investment
Huge financiers would constantly look for to have a mutual understanding of the legal environment prior to putting cash into a service or product. This is why excellent laws are important to bring in foreign financial investment into a nation.
Likewise, services should comprehend their legal environment so regarding make optimal usage of it. The law is a double-edged sword when it pertains to organization as it can be utilized for growth however a modification in law can develop a severe environment that would make it challenging to run.
Laws might develop brand-new chances for organization. For that reason, services that adjust rapidly to legal modifications can endure and grow faster than their rivals.
I will offer an example of a modification in the international environment.
A couple of years earlier, the European Union (EU) passed the General Data Security Laws (GDPR) that make it obligatory for services offering services to adhere to the policies.
These policies, for that reason, effect Kenyan services that have customers in the EU.
A company that rapidly adjusts and abides by GDPR would have an edge over rivals.
Regionally, prepare for trade combination on the continent through a series of trade procedures develop huge chances.
Congo in EAC
The current entry of the Democratic Republic of the Congo (DRC) into the East African Neighborhood (EAC) is another chance. Its entry was effected by a modification in law.
Nationally, there are continuous modifications to the law that develop chances and shape method.
An example is the Launch Act which opens the marketplace for brand-new services and their owners.
Modifications in law, nevertheless, might develop a severe organization environment and might require a shift in method.
When Covid-19 took place, public health policies were fine-tuned quick and the modification impacted numerous services.
These policies were really modifications to the legal environment.
For a service to increase usage of the law as a tool for development, it is important for it to, most importantly, adhere to all the pertinent policies and laws.
Second Of All, it is very important for a service to often upgrade its understanding of the legal environment to determine brand-new chances that might turn up. This can feed into business method.
It is likewise crucial to understand how to adjust to a severe environment developed by a modification in law.
This might indicate diversifying or altering to a brand-new line completely.