, professor, Kharkiv, Pushinska, 77

In heading

Economic theory of law;

Signed print


Issues number

2019 - № 1 (36)



Type of articles

Scientific article

Code UDK


ISSN print



Problem setting. Development of the contemporary business occurs in the sufficiently dynamic legal environment. Legal illiteracy of managers or candid neglecting legislation becomes one of reasons for bankruptcies of business entities. Under such conditions, forming legal strategies for business entities and applying juridical resources of firms for creating competitive advantages are of great importance.
Recent research and publication analysis. An issue concerned with growing of importance of law in contemporary management is mostly examined by foreign scientists. The main directions of their research are as follows: a) developing a conception of proactive law (G. Siedel, Н. Haapio); b) substantiating the necessity for development of special legal strategies for business entities, analysing their role in enhancing competitiveness of the business (A. Masson and M. J. Shariff, H. Bouthinon-Dumas, G. Siedel, R. C. Bird, and С. Roquilly); c) determining peculiarities of the interaction between managers and lawyers at a firm (C. E. Bagley, G. Siedel, D. W. Savage, R. C. Bird, P. Borochin, and J. Knopf).
Paper objective. The article objective is to disclose the essence of a conception of finding a right legal strategy for the business and to analyse opportunities for its practical implementation in Ukraine.
Paper main body. Developing corporate legal strategies is the most important component of contemporary legal management of business entities.
A corporate legal strategy leans on prospective prognostication and planning, revealing long-term trends of development of an entity, awareness of goals and objectives, opportunities and restrictions of activity. In the practical context, it is an algorithm for making legally significant decisions at each level of development of a firm basing on determining prospects of licit earning income and mechanisms for protecting the business in case of emergence of: а) economic (entrepreneurial) risks and their possible legal implications; b) legal risks and their possible economic implications. The article analyses scientific approaches of scientists to determining the essence and systematization of legal risks of business entities.
Foreign researchers such as R. C. Bird and D. Orozco argue that business entities tend to use one of the five legal strategies: a) avoiding or neglecting law; b) adhering to law; c) averting or preventing violations; d) the growth of importance and value of the business and e) transformation. Using an example of adhering to norms of labour law, particularly legalization of employment, the author analyses reasons for choosing and undertaking each of legal strategies in Ukraine.
The author points out that a majority of Ukrainian firms operate within a paradigm of managing risks, namely the strategies of adhering law and prevention. Simultaneously, the author takes into consideration transaction costs of adherence or non-adherence to norms of legislation being called the «price obeying the law» and «price of illegality» by H. de Soto. To avert emergence of particular legal risks and to minimize or overcome their implications, Ukrainian firms begins to apply special tools for implementing a legal strategy, particularly due diligence, compliance, and forensic.
The strategy of the growth of importance and value of the business, as well as the strategy of transformation means that firms actively use law for development of a business. Foreign firms create a position of a chief legal strategist while a corporate legal strategy integrates into a business model and business ecosystem of a firm. Practices of investor relations and government relations are the main instruments for implementing such strategies.
Conclusion of the research. Choosing and undertaking an effective corporate legal strategy is a component of contemporary strategic legal management. Development of such strategy requires analysing internal and external factors of influence, needs essential resources, appropriate knowledge and managerial experience, and, in many cases, consultancy of specialists.
Short Abstract for an article
Abstract. The author generalizes scientific approaches of foreign scientists to the content of proactive law, developing and implementing corporate legal strategies. The author has analysed the main types of legal strategies. The author has paid special attention to problems of implementing corporate legal strategies in Ukraine and substantiating effective instruments for undertaking these strategies. The author has proven that a majority of Ukrainian business entities orient towards managerial risks in their activities. However, more and more firms transit to a model of managing development.


law, legal risks, legal management, corporate legal strategy.


External reviewer

Article in PDF



1. Lynnyk, O., & Stoliarchuk, Ye. (2018). Forenzik-audyt: Zvorotnyi zviazok [Forensic audit: Feedback.]. Ukrainskyi yuryst – Ukrainian lawyer, 11. Retrieved from [in Ukrainian].
2. Seidel, G., & Haapio, H. (2011). Proactive Law for Managers – A Hidden Source of Competitive Advantage. Aldershot: Gower Publishing, Ltd.
3. Siedel, G. (2011, February 14). Law: The Hidden Competitive Advantage. Michigan Ross. Retrieved from
4. Siedel, G., & Haapio, H. (2010, August 1). Using Proactive Law for Competitive Advantage. Ross School of Business Paper, 1148. DOI:
5. Bouthinon-Dumas, H., & Masson, A. (2012). Stratégies juridiques des acteurs économiques. In A. Masson, & M. J. Shariff (Eds.), Legal Strategies: How Corporations Use Law to Improve Performance. Louvain-la-Neuve: Larcier, 2012.
6. Masson, A. (2009, November). Crucial Role of Legal Capability in the Realisation of Legal Strategies. DOI:‑3‑642‑02135‑0_6.
7. Seidel, G. (2016). The Three Pillar Model for Business Decisions: Strategy, Law & Ethics. Ann Arbor: Van Rye Publishing, LLC.
8. Seidel, G. (2002). Using the Law for Competitive Advantage (J-B-UMBS Series). Hoboken: Jossey-Bass.
9. Bird, R. C. (2011). Law, Strategy, and Competitive Advantage. Connecticut Law Review, 44 (1), 61–97. DOI: 1327795.
10. Roquilly, C. (2009, November). From Legal Monitoring to Legal Core Competency: How to Integrate the Legal Dimension into Strategic Management. DOI:‑3‑642‑02135‑0_2.
11. Bagley, C. E. (2008). Winning Legally: the Value of Legal Astuteness. Academy of Management Review, 33 (2), 378–390. Retrieved from pdf.
12. Bagley, C. E. (2010, March 28). What’s Law Got to Do with It: Integrating Law and Strategy. American Business Law Journal, 47 (4). Retrieved from pdf.
13. Silverthorne, S. (2005, December 12). Using the Law to Strategic Advantage. Working Knowledge. Retrieved from
14. Bagley, C. E., & Savage, D. W. (2010). Managers and the Legal Environment: Strategies for the 21st Century. Mason: South-Western, Cengage Learning.
15. Bird, R. C., Borochin, P., & Knop, J. (2015). The Role of the Chief Legal Officer in Corporate Governance. Journal of Corporate Finance, 34, 1–22. Retrieved from pdf.
16. Permyakov, Yu. E. (2014). Pravovyye strategii kak kommunikativnyye modeli: problema opisaniya [Legal strategies as communicative models: the problem of description]. Pravovedeniye – Jurisprudence, 5 (316), 73–80 [in Russian].
17. Shuvalova, A. (2014, November 14). Sistema otsenki pravovykh riskov – roskosh ili neobkhodimost? [Legal risk assessment system – a luxury or a necessity?]. Retrieved from [in Russian].
18. Novikov, V. V. (2015). Teoretyko-pravovi aspekty ryzykiv u pravi [Theoretical and legal aspects of the risks in the right]. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu. Seriia: Yurysprudentsiia. – Scientific Herald of the International Humanitarian University. Series: Jurisprudence, 1 (13), 36–39 [in Ukrainian].
19. Novikov, V. V., & Borovikova, V. S. (2018). Do pytannia pro sutnist ryzykiv u pravi [The question of the nature of the risks in the law]. Naukovyi visnyk Lvivskoho derzhavnoho universytetu vnutrishnikh sprav – Scientific herald of Lviv State University of Internal Affairs, 1, 28–36 [in Ukrainian].
20. Pravkina, I. N. (2017). Pravovye strategii v osnovnyh formah sovremennogo prava [Legal strategies in the main forms of modern law]. Vestnik Moskovskogo universiteta MVD Rossii – Bulletin of Moscow University of the Ministry of Internal Affairs of Russia, 3, 107–110 [in Russian].
21. Bird, R. C., & Orozco, D. (2014, September 16). Finding the Right Corporate Legal Strategy. Magazine: Fall 2014. Retrieved from
22. Bilshe 50 % ukrainskykh pidpryiemstv platiat zarplatu «v konvertakh» [More than 50 % of Ukrainian enterprises pay wages «in envelopes»]. (2019). Retrieved from‑bilshe-50‑ukrayinskih-pidpriemstv-platyat-zarplatu-v-konvertah-dfs [in Ukrainian].
23. V Ukraine vyrosli «trudovyye» shtrafy dlya biznesa [In Ukraine, «labor» fines for business are increased]. (2019, January 06). Segodnya – Today. Retrieved from html [in Russian].
24. Oleynik, A. N. (2000). Institutsionalnaya ekonomika [Institutional economy]. Moskva: INFRA-M [in Russian].
25. Macey-Dare, R. (2010). Litigation Cost Strategies from Economics. In A. Masson, & M. J. Shariff (Eds.), Legal Strategies: How Corporations Use Law to Improve Performance. DOI:‑3‑642‑02135‑0_7.
26. Pro zatverdzhennia Polozhennia pro orhanizatsiiu vnutrishnoho kontroliu v bankakh Ukrainy: Postanova pravlinnia Natsionalnoho banku Ukrainy vid 29.12.2014 № 867 [On approval of the Regulation on the organization of internal control in banks of Ukraine. Resolution of the Board of the National Bank of Ukraine dated December 29, 2014, No. 867]. (2014). Retrieved from–14 [in Ukrainian].
27. Government Relations. (n. d.). Retrieved January 2, 2019, from

Code DOI