Taking steps to comply with legal obligations may seem obvious. However, only meeting the minimum requirements can result in missed opportunities. After all, understanding the reasons for the various rules, laws and regulations governing your business can help you take advantage of any benefits offered. This therefore ensures that your company always remains in compliance/compliance.
Compliance needs grow with the business In its commercial sense, "compliance" refers to a company that fulfills its legal obligations. In general, these include protection for the health, safety and well-being of others. Simple examples of compliance include obtaining a commercial license in your city and paying your taxes. The importance of compliance is more evident as issues become more complex. That is, as the company grows.
In these situations, the company now has expanded responsibilities in relation to employees. Especially with regard to hiring, dismissal, discrimination, harassment, security, salaries, payroll and benefits. In addition, the way you make and sell your product or service may be under the auspices of a government agency. For example, a restaurant needs to meet health department guidelines. Reduced legal problems The most obvious consequence of compliance is that it reduces the risk of fines, penalties, outages, lawsuits or business interruption. After all, when you don't meet some compliance requirements, such as posting an employment poster in the wrong area of the office, you may receive a warning and a chance to fix the problem. However, in other situations, you can face expensive sanctions. Failure to comply with your legal obligations, such as in your manufacturing procedures or advertising methods, can also help someone who is suing the company strengthen your case. Therefore, hiring a compliance specialist can help you understand all your legal obligations and how you should comply with them.
Enhanced operations and security It is important to emphasize that many business rules and regulations can help the company much more than harm it. For example, rules on discrimination and harassment help create a better working environment for employees. And this can lead to increased employee productivity. Following safety and protection rules helps prevent injury, fire, or evacuation of buildings that impair profitability.
Better public relations By fulfilling your legal obligations, one of the benefits of compliance is the ability to advertise them on your website and in your marketing materials. For example, when you place job ads, include the fact that you are an equal-opportunity employer. If you post your mission statement on the site, please declare that it does not discriminate based on race, gender, creed or sexual orientation. When recruiting new employees, highlight the company's commitment to physical safety and mental health, referencing key policies and benefits dedicated to proactive health and well-being. This is the case of maternity and long-term paternity leave or free association with the academy, for example.
Increased employee retention Many business compliance issues deal with employee protection. After all, the more employees feel they work in a fair, professional and safe environment, the more likely they are to stay in the company. Even if you don't harass or discriminate against any employees, if you don't take steps to ensure other employees do so, you may lose valuable employees. Therefore, include policies and procedures in the employee manual that mirror your legal compliance obligations. Remember, a policy is only strong if it is applied.
That is, your policy should not only present the rules. But also specify the procedure for dealing with infractions such as reprimand and additional training in a first offense and suspension or termination in a second. Check in with interim managers or supervisors on a regular report to ensure complaints are handled appropriately.
Hamilton Lindley is a Texas business professional who leads teams on investigations, compliance, and litigation management. He has a bachelors in entrepreneurship and a juris doctor in law from Baylor University. Hamilton has three children and a wife of 20 years. They live in Waco, Texas. Hamilton enjoys camping, hiking, hunting, and fishing. Hamilton Lindley believes in continuous improvement and information flow. His team manages $2.5 billion in revenue compliance for more than 4,000 franchise owners across the world.