When thinking about the law, we really do not think about the about the role and functions that it has on society and within business. During this paper we cover some of the roles and functions that laws have on both society and business. First in order to understand the roles and functions that laws have we must know and understand what the meaning of the word law is. According to our text the word law is defined as being “A body of rules, of actions or conduct prescribed by controlling authority, and having legal binding force” (Melvin, S.P. 2011).
When we are talking about the law and how it functions or the role that it has in business and society we would see the following. In business the law has a major functions and role that it needs to do. One of the most important functions that law has in business is that they depend on the law to help protect their business interests while they are conducting their day-to-day operations. The law will also help companies to protect them from having to face any type of frivolous lawsuits from either their consumers, suppliers or their vendors. Another way that businesses will use the law would be when they have to make or have a contract between other businesses.
The major benefit that businesses have from the effect the law is it will help them to avoid any negative interactions from the government. When we are talking about the law and society and the role and functions that it has on society we would see the following effects. In society the laws are a clear and set of rules that each and every citizen needs to follow to be accepted by society. The type of law that the people of society have to follow is known as public law. With the public laws that are in affect each and every member of society who goes against those laws will be faced with a type of punishment or penalty for their conduct.
The laws that society uses and has to follow not only helps to protect them from harm from each other but also from businesses when it comes to having contracts with companies like banks and also when it comes to consumer rights. Within the industry that I work in we are affected by the law all of the time. Here of recent we have a major project going on and we have had The Occupational Safety and Health Administrative (OSHA) on site. By having them on site it has helped to ensure that the laws are being followed to ensure the safety of the workers and the company. If the laws that are set in place are not followed then both the workers and they company could be fined by OSHA.
Since OSHA is a federal government agency they are able to hand out fines or even bring both the employees and the company up on criminal charges due to the lack of following laws. Due to wide range of laws and regulations they have to enforce they are part of the Department of Labor their fines can fall under both criminal laws “Laws designed to protect society, which results in penalties to the violator such as fines or imprisonment” (Melvin, S.P. 2011) and civil law “Laws designed to compensate parties for money lost as a result of another’s conduct” (Melvin, S.P. 2011). Last week during this project there was a person who fell through the roof and injured their self. After OSHA did their investigation of the incident they handed out fines to the contractor that was hired to do the job.
They also handed out other fines to the employees of the contractor for not abiding some of the safety regulations that have been set in place for their safety and they safety of the company. OSHA tried to fine the company that I work for but was unable to because we had all of our documentation in place stating that the contractor knew all of the laws and regulations that they needed to follow. This is another way to show how the laws that were made and set in place to help protect both societies and business have helped to just do that. Without these laws in place then no one would have been held accountable for the events that took place or to help from them happening again.
References: Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.