The Importance of Compliance Management (As Shown in GIFs)
Broadly defined by Dictionary.com, compliance is the act of conforming, acquiescing, or yielding; a tendency to yield readily to others, especially in a weak and subservient way. OR simply, the act of being in accordance with established standards, guidelines, or legislation. When it comes to a business and corporate management, such word refers to the company obeying all of the legal laws and regulations regarding to how they are managing the business, their staff, including their treatment towards their consumers. The notion of compliance is to ensure that corporations act responsibly. Let us learn what is compliance management and what does a compliance management system bring to you and your business.
What does compliance management mean?
Compliance management is described as the process which makes certain that a set of people are attending a given set of rules, with the rules referred to as the compliance benchmark or compliance standard while the process is what manages their compliance.
Why is compliance important, especially in business?
One of the beneficial importance of compliance in a business is avoidance of criminal charges. Obviously, no business wants to face criminal charges due to not following the law. And since there are a lot of different regulations and laws regarding to how a business should manage its staff, the rules of transaction when buying or selling, rules on arrangement with customers, safety rules, on employee salary, etc, keeping track to all of these is a challenge which is why it is important for a business to have these two (2) different things. First is to have a compliance department, to be headed by a Chief Compliance Officer, which will be monitoring all of the compliance guidelines, cases, projects, and issues. And secondly, businesses must have a compliance kit which includes extensive software and databases that will keep track of all the information and help in auditing court cases, performance management, risk management factors and many others. Having both proper compliance management and compliance kit, a company can stay on the law’s light side.
Another one is increased productivity in the company. Whenever there is internal compliance to wages, safety, compensations, and employee benefits and protection, there will also be a positive environment in the work area. This will enable employees to be more fervent to work because they are satisfied and that all of their complaints or issues are being monitored and attended properly.
And lastly, fabricating positive reputation towards the public. Of course, businesses value trust and losing it from the general public due to several court cases may result to drop in their product sales and service demands. However, with compliance, it will ensure that a company can maintain a positive image and shape consumer trust. Know that customers are likely to return availing a service or products from a company they recognise as trustworthy.