You know the saying, “Ignorance of the law excuses no one.” Even kids who want to set up a lemonade stand have to get the proper permits or they risk getting a fine.
And this is what business compliance is all about. To be compliant, you have to meet all legal obligations – not the minimum, but all.
It may seem tedious and overwhelming, especially for small businesses. But there are good reasons to stay in compliance at all times. Let’s talk about the 3 benefits of compliance in business and how you can manage it year after year.
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1. Avoid Legal Risks
When someone asks, “why is compliance important?” the first thing that comes to mind for most people is “to avoid penalties.” Being compliant will also decrease your risk of fines, lawsuits, or worse, your business shutting down.
You’re lucky if you’re just given a warning. But what if you get sued?
For example, if a customer slips and falls at your business and they were able to prove negligence on your part, you’ll have to pay the victim, plus legal fees. The damage to your reputation could also take years to repair. All these wouldn’t happen if you have a health and safety compliance management system in place.
2. Make Customers Feel They Can Trust You
Complying with laws and regulations isn’t only about protecting your company. It’s also about taking care of your customers.
After all, who would trust you if your company falls victim to regular data breaches? Or if people know that you’re violating important cybersecurity regulations?
The good thing is you don’t have to do everything by yourself. Form your own compliance department or outsource to a third-party compliance company. If you have industry-specific needs though like NIST 800-171 Compliance, it’s best if you work with a compliance expert.
3. Retain Top Talent
Good employees aren’t going to stay in a company that has no idea what compliance is or how it benefits everyone in the organization. One way to make your employees feel valued is by enforcing procedures and policies according to your legal compliance obligations.
These include paying them right, giving them their benefits, and keeping the workplace safe at all times. Respecting their privacy, strictly following anti-discrimination laws and having a strong policy against sexual harassment are also part of your legal compliance obligations as an employer.
Bonus: Business Compliance Pro Tip
As your business grows, your compliance requirements will also become more complex. You’ll also find that you need to keep updated on laws and regulations as they could change in as little as 60 days.
To manage these challenges, it’s important that you think ahead. Rather than doing compliance as if it’s just another task to check off your list, think of it as an investment.
Now, whether that means building your own compliance team or working with other compliance companies is up to you. The important thing is you prepare for it and involve everyone in your business in the process.
Wrapping Up
While business compliance requires a lot from you as a business owner, it’s good to remember that everyone in your company benefits from it and your customers, too.
For more tips and advice on business compliance, check out 7 Cyber Security Trends in 2019 and the Benefits of a Digital Check-In System.
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