Managers must be knowledgeable on legal issues in business. While many think this area is reserved for lawyers, a good manager knows enough about the law to prevent potential legal issues before a lawyer is necessary. As lawyer Malcolm Campbell points out, “Waiting until you feel that there is a clear need for legal services often means that there is already a problem to be addressed.” Avoiding those problems in the first place is usually the best (and least expensive) course of action.
To run a successful business, managers must know the legal requirements in their country, region, state and city. Most Master of Business Administration (MBA) programs, including online MBA programs, require that students be proficient in business law.
Benefits of learning legal issues in business
Whether you are a manager of a multimillion-dollar international company or the founding entrepreneur of a fledgling startup, it is important to understand basic legal issues in business. In addition to protecting a company from losses due to illegal activities, understanding business law helps to build credibility with your suppliers and customers. Investors and customers want to know that your company will be around when they need your goods or services, and not at risk of being tied up in court over potentially illegal business practices.
Businesses handling legal issues in business
Many law schools are now offering crash courses in business law. However, companies have been trending away from hiring lawyers. As Elizabeth Olson, business journalist for the New York Times, points out, “business spending on legal services rose only slightly over the last decade as corporations moved work from outside law firms. …” As stated earlier, businesses save money when they avoid legal issues, and online MBA programs train students to do just that.
MBA programs, including online MBA programs, typically include coursework on business law as a requirement for graduation, and for good cause, too. More and more companies are shifting their focus from lawyers to good managers. Preventing legal issues in business is a safer route than having to hire lawyers as problems arise.
Learn more about Boise State’s online MBA program.
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