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- Q17163489 subject Q6356625.
- Q17163489 abstract "Proactive Contracting is akin to Proactive Law and focuses on the same properties, namely to prevent problems and promote relationships. The legal area of research developed in Scandinavia in the 1990s and has gradually gained attention. Proactive Contracting deals with Contract Management, Relational Management, Risk Management and Business Process Management.The word proactive is the opposition to reactive and refers to acting in anticipation of future problems, needs, or changes.A survey conducted by IACCM shows that businesses urge a paradigm shift in contracting, favoring a more relational approach. Thus, the focus of future contracting becomes more relational. Businesses may therefore face increased complexity as trading is done not only across physical boundaries, but also across religious, cultural, and ethical boundaries.The IACCM survey has underpinned the need for re-thinking contracts and the approach to business relationships, as international, and long relationships, make it hard to draft and agree upon every single event that might occur in the future.Proactive Contracting is moving away from the path of responding to these complex relationships with complex contracts. However, as it is hard to imagine realistic alternatives to contracts, Proactive Contracting suggest businesses to change perception of contracts to meet the needs of the future. Add to this the increased complexity of products due to technological evolution and it becomes clear that businesses need to actively deal with the danger of increasing complexity and uncertainty.In fact, a survey conducted by IBM Corporation revealed that 79% of Chief Executive Officers (CEOs) see increased global complexity as a major challenge over the coming years.As the legal framework increases in complexity, it becomes apparent that there is a need for creating certainty in order to support future trading.Businesses need to manage this complexity in order to avoid unnecessary losses, but also in order to exploit all the possibilities deriving from global interaction.Empirical studies on contracting capabilities and research on dynamic capabilities have shown that promoting proactive behavior in businesses is a key in the quest of future success.As globalization increases, sustainability and certainty become more urgent, resulting in decentralization of the traditional legal environment. The reason for this decentralization is that the traditional legal environment does not fulfill the task of creating the certainty and sustainability that businesses need in order to prosper.After the launch of the United Nations Decade of Education for Sustainable Development, mechanisms have evolved through which future development is achieved. According to these mechanisms, a sound development must be focusing on ethically acceptable, morally fair and economically sound processes.Management tools for global value chains have already been developed, and focus is especially on self- and private regulation instruments and standards - this is where proactive contracting and proactive law is coming to the fore.".
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- Q17163489 comment "Proactive Contracting is akin to Proactive Law and focuses on the same properties, namely to prevent problems and promote relationships. The legal area of research developed in Scandinavia in the 1990s and has gradually gained attention.".
- Q17163489 label "Proactive contracting".