A Culture of Compliance – How to Keep Your Business Running the Way it Should

In the midst of scandals such as the Volkswagen and Mitsubishi emissions tampering, and with past breakdowns such as Enron and the mortgage debacle, it is apparent that these businesses had fundamental flaws in implementing and following basic policies. Typically, the problems arise from either a lack of appropriate policies and procedures, or properly training employees and holding them accountable when they fail to follow procedures.

While these examples in the news involve large companies with thousands of employees, the same principle applies to small businesses. Policies and procedures, prepared in according with local, state, and federal laws, are essential to the continuing operation of your business. Additionally, making sure that you and your employees properly follow these policies is even more critical. Proper policies and procedures along with training to comply with the law does have an upfront cost, but will reduce costs in the long run as it can prevent audits, lawsuits, and will ultimately make your employees and customers happier, which can lead to a more successful business.

It all boils down to creating, maintaining and fostering within your business a culture of compliance with the law, a culture in which your employees who adhere to policies and procedures are properly rewarded, and in which your employees who fail to do so are properly held accountable.