Above Board: Why Staying in Business Relies on Compliance
Regardless of the type of business you operate, you likely must comply with numerous requirements and regulations. These regulations may be designed to protect the environment, to safeguard the public, to prevent the spread of disease or to accomplish other goals. Strict compliance with some regulations can be expensive, time-consuming and burdensome in other ways.
As a result, you may be inclined to cut corners. Perhaps the oversight is unintentional and is caused by a lack of understanding.
There are critical reasons why your business must remain in full compliance with all regulations without fail, and these are among the leading reasons.
The Financial Impact
Various regulatory agencies may have the authority to fine your business for non-compliance. In some instances, these fines can be unmanageable.
After all, there may be times when you barely turn a profit or even when your business operates in the red.
You also understandably need to allocate all of your capital in strategic areas for growth rather than to waste it by paying unnecessary and avoidable fines. Compliance ensures that you avoid these fines.
Legal Trouble
Some non-compliance situations are legal matters, and you may be caught up in a court case as a result.
Your company may even be sued for personal injuries or other issues. The legal fees may be combined with penalties imposed by the court.
These may equate to tens of thousands of dollars or substantially more in some cases. If the matter is criminal, you may be required to serve time in prison.
A Public Relations Nightmare
The public expects companies to conduct business aboveboard and to maintain a certain level of ethics.
Failing to fully comply with industry restrictions and laws taints the public’s view of your business and influences their decision to do business with you.
For example, word that your company has failed refrigeration vessel inspections may reach public ears.
In some instances, minor issues may circulate through word-of-mouth communications. Major situations may be heavily covered in the media or may spread virally on social media platforms.
Each of these consequences can impact your business in significant and potentially devastating ways.
Many businesses that have faced non-compliance issues have ultimately been forced out of business as a result.
In order to promote your company’s highest level of success, compliance with all regulations is essential.
Ensure that you fully understand all regulations and requirements related to your business, and implement a strict compliancy program to avoid oversights.
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Category: Business
