No matter what industry you are in, there are regulations in place to make your company comply with preset standards of practice. These standards are known as compliances. Some are set in place by government agencies and the others are professional compliances both internal and external. Government compliances in many cases deal with health, safety and security to name a few. Business owners have mixed emotions about compliances. In most cases, compliances are viewed with distain for many reasons over and above the expense of it.
What should be recognized as important is the effect on your brand your compliances have. If your corporate brand values are based on values such as integrity and due diligence, being compliant is very important to you. By complying you reduce the risk associated with running your operation. Deficiencies in the implementation of compliances can lead to unfortunate outcomes that essentially take a sucker-punch to your brand. No business can afford to run rough shod over their compliance obligations. Safety compliances protect your brand from being exposed due to employee injuries. These high profile events draw undesired attention to your company. Any adverse news makes your company look sloppy and insensitive.
Your brand is everything to do with your reputation. Not only is being compliant of importance to the health and welfare of your company but also by extension to your corporate brand as well. Industry compliances are more specific in nature. They typically associate themselves with standards of the type of business you are in. Architects for instance must adhere to compliances that allow them to promote themselves as architects. These industry compliances set the bar high for entry into the industry and protect the public in their quest for your services. Following these compliances assures the public of professional standards of practice. Detering from professional compliances sets your brand up to take the fall. Failure to live up to your compliances and accepting deficiencies exposes your company – and thus your brand. Any loss in professional designation will ultimately cost you money. Your brand loses its expert status in the eyes of your customer.
A third and often neglected area of compliance is the self-administered compliance. These are compliances that you have personally put into place to react to a cultural shift in your industry or to raise the bar from within. Self-administered compliances are very real opportunities. Corporate standards put in place within a company do so to provide an assurance on the level of quality of operation and service within the company. Self-administered compliances are a perfect opportunity to develop a more effective model of operation.
Now that we have looked at the 3 main types of compliances and recognizing their importance to the running of your company and their positive impact on your brand, now we must be assured that they are being implemented effectively. It is one thing to recognize a compliance need, it is another entirely that the compliance is being administered properly. There must be processes put in place to be sure that those rules and regulations are being followed and understood by all stake holders in the company. Any negligence in the implementation of compliances weakens the compliance leaving your brand exposed by association. Your marketing efforts often position your company in it’s best light. You simply can not afford sloppy compliance practices. It has a negative effect on moral and leadership within the corporation.
Once you have determined that all compliances are in place and that they are being adhered to according to processes developed to that end, it is important now to market compliances to your advantage. Being compliant on multiple levels can become the basis of a strategy of differentiation. Compliance icons can be used to shout this message out to your target audience. Stepping up as a leader in your category, not only raises the bar but puts barriers in place that impedes the forward movement of your competition. In order to match or beat you they have to invest considerable effort and expense to catch up and surpass you. Being the leader allows you certain bragging rights that gives your customers maximum confidence in dealing with you.
This confidence equates to a stronger brand relationship.
You’re right, it’s a lot cheaper for a business to get it right the first time. Sales and use tax compliance is a specific example that illustrates your point. Avalara helps businesses navigate tax calculation and remittance.
Thank you for your input AvaLara, as an expert on tax issues, you more than most can appreciate how non-compliance can drag a brand backwards. Thank you for validating my comments.