The Relationship between the Legal and Business Environments in the Context of the Unfair Commercial Practices Directive 2005/29/EC and its Impact on Value Creation

Abstract: The tremendous growth of globalization and the international dimensions of commercial operations necessitate that businesses are dynamic organisms that constantly adapt to the ever- changing environment. While they strive to create competitive advantage by utilizing every possible resource available, one key resource is often neglected: the law. This study explores the relationship between the legal and business environments in the context of the Unfair Commercial Practices Directive 2005/29/EC and its impact on value creation. The research was conducted through an exploration of the relationship aforesaid to identify the impact of the former on the latter. Our research highlights the importance of connecting the legal and business disciplines and contributes to the understanding of both. In the course of the Unfair Commercial Practices Directive, we conclude that businesses have a powerful legal tool at their disposal that can be leveraged to create a competitive advantage, which is sustainable in the long run. Marketers can make use of it to explore the possibilities of rethinking or transforming their business strategies.