Compliance is one of the most critical elements of a business, yet many business owners are unaware or oblivious to what it is and how it can help. At Grow Advisory Group, we are committed to nurturing business growth and attract new customers because of our ability to help businesses in this respect. However, one of the most common pitfalls we see in new customers is their lack of compliance. While this may not seem like a big issue, it can be the downfall of a business and should be accessed by your accountant.
Simply put, compliance is the act of following the rules, standards, awards, regulations and ethical practices that apply to your industry and business determined by law or any governing body. Such compliance applies to your staff, treatment towards consumers, and business management.
Businesses generally have some form of a compliance program in place for protection. Think of it as an investment; an investment that can potentially protect your business against fraud, discrimination, and internal HR issues.
Negative media exposure can end business empires. Failing to pay staff fairly, ripping-off customers or clients, or failing to abide by your legal tax requirements will generate the type of negative media exposure that can become a PR nightmare.
The cost of non-compliance can be high also. When you recruit new workers, highlight your company's commitment to both physical safety and mental health by referencing key policies and benefits dedicated to proactive healthcare and wellbeing, such as extended maternity and paternity leave or free gym memberships.
Many business compliance issues deal with protecting employees. The more employees feel they work in a fair, professional and safe environment, the more likely they will be to stay with you. Include policies and procedures in your employee handbook that mirror your legal compliance obligations.
Remember, a policy is only strong if it is enforced. Your policy should not only present the rules but also specify the procedure for dealing with infractions, such as a reprimand and additional training on a first infraction and suspension or termination for a second.
Check in with middle managers or supervisors regularly to ensure complaints are handled properly. Sam Ashe-Edmunds has been writing and lecturing for decades. These standards are only relevant if they are enforced properly and observed religiously within the organization.
You also need to understand whether following these rules will address the true needs of your company. Being compliant as a business requires knowing the different types of compliance that fit your organization. One way to identify its applicability to your business is to know its relevance.
In order to do this, ask the following questions:. The main purpose of compliance is simple—this is to identify and avoid possible red flags in your business. Again, failure to comply seriously could result in costly fines or penalties in the future. Furthermore, corporate compliance also helps your employees act responsibly. An effective program teaches your employees to treat each other well at work, promote a high level of professionalism, and uphold corporate values inside and outside their workplace.
Below are some reasons why your company should take compliance seriously:. No business would want to get into major legal disputes and face criminal charges due to non-compliance with the law. Court hearings and appearances can be colossal trouble to your business operations.
To be legally compliant involves not only learning essential legislation applicable to your business but also applying them at all costs. As a rule of thumb, building a reputable public image is one way to successfully promote your business. If your company gets into trouble due to non-compliance, the general public might doubt your credibility.
Earlier, it was discussed how compliance can create strong business standards. We call this internal compliance. Employees want a workplace where they feel secured and well taken care of. This can only be achieved if the company has a clear model.
This model can be a set of guidelines or policies that ensure employees and clients fairness and safety. In a survey conducted by Globalscape and the Ponemon Institute, it was found that:.
There is! As businesses change rapidly, so does the ways of being compliant. Compliance training programs and strategies are becoming more holistic and intelligent. To achieve this, companies should come up with a single, enterprise-wide solution that can manage compliance processes, reduce cost, and enhance user experience.
At Cursum, we can provide you with an all-in-one solution that includes all the necessary elements for a successful corporate compliance program. Book demo. We use cookies on our site to remember you, show you content we think you will like and help you to use the site. For more details, please see our cookies policy. Click 'Accept' to consent to cookies other than strictly necessary cookies or 'Reject' if you do not.
You can change your mind at any time by visiting our cookie policy page. Language EN-GB. Our locations. Questions each company should ask itself What are the main areas of risk for your business?
0コメント