Some of the leading companies don’t just
comply with the law. They use it to their advantage to stay ahead of their
competition. Sometimes, it is difficult to understand certain laws such as
those linked to starting and managing a business. Focusing on effective and
organized legal strategies are some of the important factors to consider when
trying to be successful in the corporate world.
Most companies in the UAE hire legal firms to
act as their internal legal strategists. These companies stay ahead of their
competition. When you use the law to your advantage, it can be rewarding.
Why You Need Corporate Legal Strategy
State laws, such as UAE labor laws govern
corporations because they are legal entities. Corporate creation, management,
and dissolution laws vary from state to state. However, every state
acknowledges a corporation as a separate legal entity from the owners. This
means a corporation can sue and be sued by others, open bank accounts, enter
contracts, apply for loans, and conduct other relevant businesses. Your company
needs a corporate lawyer Dubai
specialist who can help to manage internal legal affairs.
The Right Corporate Legal Strategy
Finding the right corporate legal strategy is
crucial for your business. Below are several legal pathways you can take to
shape your policies:
Avoidance
Sometimes, business leaders turn a blind eye
to the legal consequences that they could face because of their company’s
actions. Some executives think that the law acts as an obstacle to them
achieving their business goals.
Managers who use this strategy believe that
seeking legal expertise would provide little value to their corporations; that
is why they make no effort to acquire it. This strategy might be productive
when a company wants to conduct certain activities in another jurisdiction.
However, this might fail.
Compliance
Those who use this strategy view the law as
an unwelcome idea, but they know that it is mandatory in running their
business. In these companies, the leaders believe that compliance is a cost
that ought to be minimized. This attitude allows them to gain some legal
knowledge, but that only allows them to operate within their bounds.
Companies who use this approach view the Dubai
labor law as inflexible externally impossible laws that cannot be adapted to
suit a certain corporate technique. This way, managers believe that they cannot
use the law to further their business goals.
Prevention
In this strategy, managers believe that the
law can be used to reach their goals. Unlike the first 2 strategies, this calls
for a proactive rather than a reactive approach towards the law. Executives
hire legal counsel to help them understand Dubai labor law and how it can
benefit their business.
Legal counsels work hand-in-hand with
managers to help them achieve their management goals. Corporate lawyers also change
their view on legal data. They begin to understand the significance of
assessing and quantifying legal data and issues as an effort to support a
business-oriented pathway.
Using Dubai labor law, companies can use the
preventive approach to benefit themselves. For instance, patent fencing, which
prevents competitors from obtaining a patent and to maintain their freedom to
operate in the market.
Value
Companies who follow the value strategy use
the UAE labor law to their advantage by using it to develop
tangible and identifiable value. To do this, executives ought to have an
in-depth understanding of the legal system and how they can use it for the
success of their business. The legal department acts as a significant stakeholder,
which helps the business to maximize its return on investment.
Managers work with legal counsels and
consider them partners who are engaged in decision making and consultations. Legal
counsels take on an entrepreneurial law and have in-depth knowledge about
businesses to discuss issues with managers. Executives work together with legal
counsels to devise strategies to improve their businesses. The legal department
can work directly with external stakeholders and come up with ways to minimize
costs. They can also devise ways to increase and generate revenue.
Transformation
In this approach, the company uses the
corporate legal strategy into its business. Although achieving this integration
is difficult, it is attainable. Companies that achieve this strategy have a
powerful legal counsel that offers competitive advice that would be challenging
for competitors to imitate. A significant factor of transformative strategy is
that it is not only incorporated in the business’
value-chain activities, but it is also integrated into the
value-chain of key external partners.
When you think about legal strategies, you
will realize that there is no one-size-fits-all technique. Choosing and
adopting a legal strategy is a lengthy process, and it requires careful
consideration of internal and external aspects. You ought to assess important
variables such as personnel and company culture to come up with an effective
plan. To identify the best legal strategy, managers should involve a legal
counsel who understands how businesses operate.
