Five Reasons Why Having a Strong Compliance Program Can Boost Your Business

What is Compliance?

It is necessary to know what compliance entails in an organization. It simply means obeying all the local and international laws, rules, and internal regulations. While it sounds simple, the execution is not.

Every jurisdiction has specific laws. Every specific sector will have other rules to follow, and licenses and permits to get. There are obligations for businesses to measure the sustainability and ethical impact of an investment in a business or company, and so on.

Here are five reasons why a strong compliance and ethics program is a crucial business enabler and not a hindrance to business growth.

1. Reputation

Actual, suspected, or rumored violations can cause huge reputational damage to the company and will often result in loss of business. Organizations with a good reputation are highly attractive among potential candidates and will have far lower costs to onboard those candidates.

A good reputation is a great tool to build up or maintain the employer’s brand. A strong compliance program will manifest the company’s reputation as a diligent and ethical business.

2. Speak-Up Culture

Having a strong compliance and ethics program with a strong speak-up culture in place is characteristic of an inclusive organization with a people-centric culture. 

Employee feedback and reports help shape the culture and support positive changes in the organization. It can help us to detect small problems before they become bigger issues.

3. Business Advantage

A strong compliance and ethics program supports keeping top talent in the company as employees feel welcomed and valued. Having good compliance policies and a reputation as an ethical business will make your company more attractive to potential partnerships, contract opportunities, or merger and acquisition considerations.

A poor compliance record is a huge red flag in this connection. Your track record in this part will have a great impact in all areas of your business that are beneficial for growth. 

4. Increase Customer and Client Confidence

Transparency builds trust. Many customers, clients, and suppliers want to do business with partners who share their values, compliance, and ethics culture. 

Greater transparency of your supply chain and interacting compliantly with your third parties will lead to increased trust and open the door to long-term partnerships. 

5. Realize Company’s Mission

It could be damaging for your business if your behavior is not consistent with the values mentioned in your mission statement. A strong compliance program will help to be consistent with the company’s values.

Company policies and guidelines commonly address not only laws and regulations but also your company’s aspirations. It is about doing the right thing.

Having a strong compliance program is not a hindrance to business growth. Instead, compliance is a key business enabler and a strong part of the selling proposition.