Looking into a dictionary, one can find that the word“compliance” means that an individual or a group conforms with or obeys a set of rules or regulations determined by the law or any governing body.
When it comes to a business and corporate management, compliance refers to the company obeying all of the legal laws and regulations in regards to how they manage the business, their staff, and their treatment towards their consumers. The concept of compliance is to make sure that corporations act responsibly. So why is this important in a business?
Listed below are the benefits the concept of compliance brings into any business.
Avoidance of Criminal Charges
This is, perhaps, the most beneficial importance of compliance in a business. No business wants to face criminal charges for not adhering to the law. There are so many different regulations and laws in regards to how a business should manage its staff, how stock is handled, how advertising is handled, the rules of engagement when buying and selling, rules on negotiating with customers, on employee salary, safety rules, and so many others..
Building Positive Reputation
The success of your business pretty much depends on its public image. When a company starts facing several court cases, the general public will lose their trust in the company and sales in products and services will eventually drop. Compliance will ensure that a company can uphold a positive image and build consumer trust. This also helps build consumer loyalty, since customers are more likely going to return to a service or product from a company they identify as trustworthy.
Compliance is so important, and I want to personally thank everyone at our Money Matters location for working so diligently on the compliance training that has been assigned so far. You truly are making strides to ensure that we are a world class corporation. Keep up the good work!