The term compliance comes from the verb “to comply” and means the effort companies make to comply with rules, specifications, instructions, and regulations. A good recent example is the new data protection law, something that companies must comply with. In today’s companies, the expression becomes more and more meaningful because there are more and more legal obligations, namely in terms of data protection. In today’s article, let’s see how compliance can help your business succeed!
The processes of a company are only organized and effective when the company complies with laws and good practices. There must be reliable and up-to-date documentation on how to do things in the company. This will prevent productivity breaks and will eliminate the confusion that may exist throughout a day’s work.
Drastically reduces the risk of being fined
Compliance reduces the risk of your company being fined for defaults. Here again we leave the example of the GDPR. Legislation that came into effect last May has huge fines for offenders. Complying with this law is essential not to receive unexpected penalties that can compromise the financial health of your business. Compliance should be seen as an integral and fundamental part of business management. Thus, the company runs fewer risks and always follows the most appropriate rules and procedures.
Makes employees’ day-to-day work more efficient
With a good compliance program, it is easier for each employee to realize their role in the company and which functions are their responsibility. Each employee will know their individual goals and how they contribute to the overall goals of the company.
Reduction of costs
It may seem a difficult advantage to realize, since implementing the Compliance requires investing. However, costs are very low when compared to costs that may result from legal defaults. Prevention is always the best solution in the business world!
Positive image creation
A company that is known in the market for its ethical way of acting has a great credibility with the general public, which will have a very big influence on the consumer buying decision. This is very important for obtaining credits and subsidies, for example.