Why Business Leaders Need to Understand the Law
24 October, 2023
The law — both in the U.S. and around the globe — continues to change as technology advances, the social and political climate evolves and industries grow and decline. It’s more important than ever for managers and executives to understand relevant legal issues so they can make better, more informed business decisions.
Current managers, aspiring team leaders, executives and business owners benefit greatly from knowledge of legal best practices, the current state of regulations, important legal codes and the general legal trends or issues within their industry. These leaders should also understand the legal ramifications of business decisions and policies to help protect their organization from costly lawsuits, harm to its reputation and threats to its position in the market.
Earning a Master of Legal Studies can help current and aspiring business leaders gain working legal knowledge. To help you better understand if earning a Master of Legal Studies is right for you, we’ve created a list of four reasons why business leaders need to understand the law.
1. Legal Understanding Helps You Ensure Organizational Compliance
In September 2022, Apple paid a $14.8 million class action lawsuit that claimed the tech giant did not inform iCloud Plus users in 2015 and 2016 that their data may be stored on third-party servers instead of Apple’s own systems. This case called Apple’s issues with user data security compliance into question. It also shows how the law can be vague in terms of regulating online services and conduct. With digital spaces constantly evolving, new potential compliance issues are continuously being brought to light.
No matter your industry, you must prioritize compliance as a business leader to make sure your organization serves its customers, employees and community well. This includes anticipating the unforeseen: using your understanding of current law, as well as ways the law and your industry may evolve, to make better business decisions.
When policy doesn’t keep up with an industry’s growth, legally savvy business leaders may have to anticipate potential compliance issues before regulations are passed to prevent future legal battles. Since most businesses operate at least partially online, a keen understanding of legal precedents and impending compliance regulations is of the utmost importance for large and small businesses in every field.
A Master of Legal Studies offers business professionals a working knowledge of the law to better serve their organization.
2. Knowing the Law Can Help You Become an Industry Expert
Leadership and technical skills are necessary for any business leader, but you can gain even more expertise in your field when you gain a working knowledge of the codes, regulations, precedents and legal trends of your organization’s industry. Understanding the law as it pertains to your industry better equips you to make quick, yet informed, decisions that align with business goals and industry standards. This is especially important if you work in a heavily regulated industry like finance, technology or healthcare.
Leaders in any industry must operate within compliance regulations to protect private information of employees. Leaders in technology departments should understand relevant compliance regulations, what potential security risks with digital data management exist and how to comply with best practices to keep sensitive data safe. Those on the path to leadership can benefit from earning an MLS degree with a concentration in business law. This concentration offers coursework specific to legal concepts, principles and institutions that define and shape business relations.
You can use an MLS degree to gain a working knowledge of relevant law if you serve in any professional function that has to mitigate legal concerns. Some examples include:
- A marketing director for a healthcare organization should have a good understanding of health law to execute a HIPAA compliant strategy.
- A human resources manager in any industry should be well-versed in discrimination policy and employee rights.
- An executive in a media company should be familiar with intellectual property and copyright law.
3. Legal Knowledge Can Boost Your Confidence as a Leader and Decision Maker
Learning about the law and specific legal codes that affect your industry enables you to make more legally sound decisions for the benefit of your organization. That means you’re less likely to second-guess yourself and more confident in your ability to seek counsel.
Having this knowledge and being able to use it effectively can make you a more confident leader and decision maker. Your confidence can transfer to your team members, direct reports and fellow leaders, too. When you have more confidence as a leader, your team is more likely to follow your lead. With an MLS on your resumé, colleagues will trust in your legal understanding and see you as a valuable collaborator.
4. You’ll Improve Collaboration With Legal Teams
Business leaders across all parts of an organization interact with in-house or external legal teams at some point in their careers. When you understand the law, you are better able to collaborate with lawyers.
Your familiarity with relevant precedents and regulations means that you and your legal advisors may be able to spend less time reviewing need-to-know context and more time in focused, productive and efficient meetings. Legal counsel may also feel comfortable avoiding layperson’s terms because you’re familiar with the proper vocabulary, which reduces or eliminates miscommunication.
Clear and efficient communication is always important, but it can be incredibly vital when urgent legal matters arise, such as new regulations that affect the organization’s operations or an impending lawsuit that could have civil or criminal liability for the company. No matter your function as a business leader, more effective communication with legal professionals means you can better serve your organization.
An MLS degree can help business leaders and other professionals establish real-world connections, learn legal terminology and gain a basic understanding of the law to become a better business collaborator.
About the Master of Legal Studies Program at Northeastern University
This distinctive online Master of Legal Studies is for non-lawyer professionals who do not wish to practice law but would like to use the law as a means to achieve their goals in environments where legal knowledge is an asset.
Northeastern University is a leading institution for experiential and interdisciplinary education that ranks among the nation’s top 15 Most Innovative Schools according to U.S. News & World Report. The School of Law in particular is ranked No. 1 for practical training by preLaw/The National Jurist.
In this program, you can earn your degree in less than two years as a part-time student. The curriculum offers courses in areas such as law and organizational management, data regulation, compliance, negotiation, advocacy and strategy.
Designed for non-lawyer professionals, the online MLS helps leaders in highly regulated industries gain the expertise to excel in their careers. Choose a general course of study or select one of five concentration options:
- Business Law
- Health Law
- Human Resources Law
- Intellectual Property Law
- Public Law and Policy