Conforming to existing laws, regulations, and industry standards is arguably one of the most important things for the success of your business. The way you do business may be different from your competitors, but you need to follow some rules which are applicable to everyone. Here are the top reasons why compliance is important in business.
With the ever-increasing regulatory pressure, it is important for every business to maintain compliance.
Compliance is all about adhering to local and international laws and regulations, ensuring that you meet the legal requirements associated with running a business.
A business which is not in compliance is at a high risk of facing penalties in the form of fines. Ignoring compliance can not only be costly in monetary terms, but it can also lead to damaging your reputation and impacting customer loyalty.
This post discusses some of the benefits of maintaining compliance.
Let’s dive into it, shall we?
1. It improves Workplace Health and Safety
In Australia, businesses are required to comply with WHS regulations, which are designed to protect workers and make sure that work environments are safe.
If you run a business and have employees, you are responsible for making sure that your employees are safe and protected from any potential harm. Being compliant is a giant step towards protecting your employees and ensuring a healthy workplace. For more information about WHS Policies and Procedures check this detailed guide
Being Compliant Will Save You Money
It is important to understand that being compliant will save you money. If you aren’t compliant and you get a fine, then you’ll have to pay it. If you are compliant, then you won’t have to pay the fine in the first place – which equals money saved!
This is not just limited to the money you could potentially save from fines or legal costs. It’s also about saving money by not having to deal with the long-term consequences of not being compliant (like lawsuits, or losing your license).
That’s not all…
Think about it. If you’re found to be non-compliant, you’re more likely to have your business license revoked. And without a business license, you can’t legally operate your business, which means you can’t do business.
2. To Avoid Legal Issues
The Work Health and Safety Act and Regulations 2011 for examples are legislations that require businesses in Australia to provide and maintain a safe workplace.
Failure to comply with WHS laws can result in costly legal action taken against your business. In some cases, non-compliance can also lead to legal consequences for the individual as well -you can be held personally liable for any injuries and damages caused to your employees.
3. The level of Customers Trust is Increased
One of the offshoots of complying with government and industry regulations is that it makes your business trustworthy in the eyes of your customers. And you know how important it is to your profits to have your customers have a good perception about you and your business. A record of compliance is proof many customers look for to agree you’re running a trustworthy establishment before they do business with you.
4. To Protect Your Reputation
You can get by for a while without business compliance but it will come back to haunt you. And not in a fun way. It’s your responsibility to know what you’re legally required to do and to do it. If you don’t, you risk your reputation. Business compliance is important so that all the hard work you’ve put into building your brand doesn’t go to waste when you get caught breaking the law thereby attracting bad press.
5. Boosts Operational Efficiency
Regulations like the WHS laws can lead to the improvement of the morale of your employees, give them a sense of belonging, and ensure a positive ambiance in the workplace. Plus, with increased safety and better health and welfare of staff, operational downtime due to illnesses and absenteeism is reduced or prevented. All of these add up to higher efficiency in operational business processes and increased productivity.