On many occasions Precaution is better than Cure and this rule applies to companies too, Industrial Relations and Personnel Management are some very important factors that are required for a safe and proper functioning of a company. It is these Laws that can make or break a company, ensuring a proper and mannerly adherence to laws governing the well functioning of a company allows the companies to focus more on a profitable growth rather than being held up with non-trivial issues.
To ensure such smooth functioning of a company it is important to set such Laws agreed upon beforehand. Creating and defining these laws is whole new set of Equations in itself which has to be carefully crafted and published.