Once you plan to set up a business the one word that will keep showing up is ‘compliance’. Simply put, compliance is when an establishment meets its legal obligations. Such obligations are usually directed to protect the safety, health and welfare of others. A compliance management system is a well-structured system of rules, regulations, policies and objectives framed to keep your business functions out of any legal trouble.
An increasingly demanding regulatory environment requires businesses to not just comply but also demonstrate existing compliance.Compliance management system issues turn more complex as a business expands. There are greater responsibilities towards staff that includes hiring, lay-off, discrimination, harassment, safety, wages, salary and benefits. No matter what product you offer or the service you provide, every business operation falls under the spectrum of a government agency, for instance a food chain is obligedby health department guidelines.
There have been several ‘famous’ failures with regards to compliance, and any company, big or small, is aware of the business impact and reputational damage they risk if they are found to be non-compliant. Apparently, the reputational and financial costs of non-compliance are huge, not to forget the civil and even criminal liability one may face. No doubt, with all the legal obligations involved, compliance ranks high on a company’s business agenda.
Companies may look at compliance management system as an unnecessary obligation but once they get into it the business benefits of compliance soon start showing up.
Builds positive image
Companies that stay true to their ethics and duly meet their obligations can draw benefits from their good reputation. You can publicize this on your website, social media profiles and in your advertising materials. For instance, when placing a job advert, you can mention the fact that you are an equal opportunity employer. Consumers too show loyalty to the companies that are identified as trustworthy. Positive reputation can also help your business with financers, sponsors, advertisers and government requirements.
Proper compliance to safety, security, payroll, and employee benefits creates a positive work environment. Employees are more dedicated to work when they feel assured of being well-compensated for their efforts and that they are safe in their work environment. For a production company, adhering to safety and security policies helps avoid injuries, fires or building evacuations that directly affect revenue.
Reduced Legal Problems
The most apparent advantage of including compliance management system in your business strategy is the reduced risk of penalties, costly sanctions, labour issues, lawsuits or a closure of your business. It is always advisable to hire a compliance expert such as LexCare Global Consultants to make sure that you keep close tab on your legal obligations and know how to comply with them.