One of the most important things needed to run an organization successfully is regulation. Codification of laws and rules ensure organizational prosperityand keeps the profit flow intact.
Set by the government or any other standard organization, regulations help everybody in their implications.
Over the years, the imposition of control has resulted in the betterment of many areas.
In economic issues, it helps keep a balance on monetary transactions within an industry. Fixed costs of production and selling approved by the government increase the total revenue for both the government and the industry.1
Monopoly doesn’t allow small investors to come up. The entire market is taken up by a single group of businessmen or by cartels. Codification on dealings in the market helps reduce monopoly to a notable extent. Bank modulation is also quite beneficial in keeping an eye on a country’s capital influences.
Moving on to the environment, rules and laws have helped make the world a cleaner place over the years, at least on the developed side. It has ensured the safety of endangered species of animals and plants giving way to a greener planet. The lack of oxygen is also being filled slowly but efficiently due to preservation of forests.
Restrictions on hunting certain animals have saved them from early extinction and fishing laws have helped conserve the rapidly disappearing sea creatures.
Collective action has also resulted into a healthier social life with people increasingly signing up on social networks and taking actions as a group towards the misanthropies in society.
Regulations have a great deal of influence on our lives be it financial or environmental, they benefit us everywhere and keep the balance of life in check. 2
For any company or organization, the implication of codification helps increase output and increase work efficiency with reduced hazards. If there are no rules to follow in an industry, fatalities can occur among workers disturbing the whole output of the company. Many mishaps can also occur without codification such as product flaws etc.