The rule of law is the legal principle that law should govern a nation, as opposed to

arbitrary décisions by individual government officials. It primarily refers to the

influence and authority of law in society, particularly as a constraint upon behavior,
including behavior of government officials. In fact, it is a concept that means no one is
above the law. Then Business is the activity of buying and selling goods and services.
The rule of law is also applies to businesses. And that law is named « Business law ».
Business law aims to establish a clear and fair legal framework for commercial
transactions, ensuring the protection of the parties involved and the promotion of a
stable and prosperous commercial environment.
During our presentation, we will talk about the importance of the rule of law in
business (I), then the impact of the rule of law on businesses, after that we will see the
risks of non-compliance.

I. THE IMPORTANCE OF LAW IN BUSINESS

Firstly, the rule of law is importante to business because it gives to everyone a

framework for how to act and operate. That means, with the rule of law we are able to
have an expectations of other people’s behavior. We know what they can do and what
they cannot do, and also what is expected of businesses in their dealings and
transaction.
Secondly, the rule of law protects financial and commercial interests of businesses and
it holds people, businesses and government accountable for their actions.
Thirdly, in the case of dispute in businesses, the rule of law provides the means such as
negotiation, mediation, arbitration and legal proceedings to resolve it.

II. THE IMPACT OF THE RULE OF LAW ON BUSINESSES

The question here is about how the rule of law impacts businesses.
The rule of law has an impact on businesses by establishing rules for hiring, wages
issues, safe workplaces and licensing. That why businesses need to know what the
rules are. In fact, the internal regulations of companies must be consistent with
business law in order to prevent employers from abusing their powers. Indeed, they
must base themselves on the rule establish by the country to be able to establish the
rules specific to their companies.
 III. THE RISKS OF NON-COMPLIANCE

There are a lot of risks when businesses fail to comply with the rule of law.
First, they may be subject to financial penalities such as investment restrictions,
product embargoes or fines.
Then, they may face lawsuits. For exemple in our country, Côte d’Ivoire, the
minimum wage is set at 75.000f cfa. So if a companie fail to comply with that, it can
be subject of lawsuit. In addition, if an employer fires an employee for no reason, he
could be subject to lawsuit.
Finally, non-compliance might also lead to loss of customers, and even to business
dissolved entirely. That’s why it is crucial for businesses to follow the rule of law to
avoid these problems.