We generally hear people shout - the basic purpose of business is to earn profits for its investors - I have kind of challenged this notion in the earlier blog on business and society, where I point was that businesses need to be more proactive in their societal implication. This background leads us to this blog where we try understanding why we need a legal regulation for companies.
While businesses interact with society at various levels, they deal with both the money and the faith of the people with whom they transact. Given this, it is but fair that the interest of the people, business and society be carefully managed so that their economic activities function smoothly. This is where we have numerous regulations put in by law - right from the inception of a company (we would deal with the various types and details about the inception we know about in the So-Entrepreneurship Blog), to employment, their welfare, the agreements and contacts that govern the transactions between the organization, termination etc.
As generally said, in law the subject matter is not the person who is abiding, but the person who generally bends or breaks the boundaries; it would but be very interesting looking into this with some cases that have been in news in the past. None the less, law tries defining that the boundary for the use and abuse of the rights and privileges provided.
As we proceed with these blogs, we would disseminate some insights into the laws and their utility, implications for the business community.