Every business has to operate within a set framework that is designed and implemented by government regulators. Essentially, the government cannot allow businesses to set their own standards, as it could quickly turn into the wild west. One of the areas in that compliance is so important is health and safety.
As a business owner, you will be advised by your board to focus on getting all compliance risks thoroughly resolved in order to meet business objectives. Compliance breaches are not punished once. As long as the issue remains active, you will continue to be fined over and over.
Are You Like UPS?
UPS was given a breathtaking $23 million fine for lack of compliance in New York. Why did they receive this fine? For parking fines. UPS has resigned itself to having no other choice but to continually receive parking fines if they want their major operations to continue. During a UPS delivery, their trucks park illegally if they don’t have a choice. However, they make $84 billion in profit a year, so they can afford to pay this fine. Unless you are like UPS, with a large profit that can absorb compliance violation fines, then you need to reassess your major operational challenges.
Compliance and Testing
Many industries have companies that can do compliance evaluation and testing in a B2B relationship. For example, if you require wholesale vape carts, i.e. the entire list of parts for your key designs, this is a company that can select the best cartridge for you. If you are in the cannabis industry, they will also do the compliance evaluation and testing for not only your strand but also the product design. This way, you can ensure that your product is going to meet every regulation that government authorities have set for your industry. The current obligations are one thing, but any future regulations must also be prepared for. Their manufacturing and design processes will take up this challenge.
Bad For Reputation
Compliance is there for a reason. It’s not just to not allow unfair practices to go unpunished, but they are there to protect the public. When you fail compliance tests and receive a fine, it’s not just your funds that can take a hit. Your reputation is also at stake. For example, if your business did not comply with compliance laws regarding toxic material bans, customers will feel that you don’t care about their safety. It may have been an innocent mistake, but once the damage has been done, it’s a long hard road to get back to being trustworthy and honest. A positive outcome will occur during the process of product design and delivery, not when a purchase is made.
Compliance is a very simple area of business as the rules are set out clearly for every business to follow. Product testing and operational challenges are the main meat and bones of compliance risks for businesses. Can you think of any compliance risks you are facing?