Compliance refers to the ability of businesses to conduct their activities according to a set of regulations. It implies they have to follow the legal guidelines which a statutory body of the government imposes. This is with respect to how the businesses carry out their operations in the market and deals with their customers. In many cases, the businesses also have to abide by the rules the government lays down on how they should treat their employees. Otherwise, they will be found guilty of breaking the laws and liable to pay hefty penalties. This can prove to be detrimental for their reputation in the long-run.
Scott Tominaga – Does it benefit businesses to follow statutory compliance regulation to the letter?
Scott Tominaga is a financial specialist from the United States with over 17 years of valuable experience. His area of expertise is in hedge fund investment and helping clients with their finances. He has been working for PartnersAdmin LLC from its inception in 2008 as its Chief Operating Officer. This is a popular company in California with offices in Los Angeles and areas surrounding San Diego. It specializes in providing high-quality back-office solutions to businesses operating in the finance sector. The company also encourages them to adopt the best practices to avoid systematic risks and boost investor protection.
He says compliance is an important issue that affects all businesses, especially the ones in the financial sector. They need to abide by the various laws the government imposes to carry on with their activities. These could relate to investor protection, safeguarding consumers’ rights, unfair market practices, and preventing money laundering. Even when dealing with employees, businesses need to follow the guidelines of various labor welfare legislations. Otherwise, businesses could face unnecessary lawsuits, fines, and penalties. They may even come across problems relating to the payment of taxes, payroll, or workers’ compensation. In the worst-case scenario, the government can even force the businesses to shut down.
He further explains businesses who are compliant in following statutory regulations of the government enjoy the following six benefits:
- Businesses who are compliant in following the guidelines of various labor welfare laws faceless strikes and lockouts,
- Local governments generally issue licenses to businesses with good compliance track-records to open factories in backward areas,
- Investors have no objection but to lend money to businesses adopting best practices in corporate governance,
- Customers are more likely to buy products and services of businesses who avoid unfair market practices,
- Businesses who follow the guidelines of various employment opportunities laws can attract the best talents, and
- Businesses who are transparent in abiding by tax laws are unlikely to face problems with the IRS.
Scott Tominaga concludes by saying abiding by various compliance regulations does help businesses in the long-run. They face less labor unrest resulting in strikes and lockouts in comparison to other businesses. Many of them also have no problems in attracting new talent to their workforce. Consumers do not think twice about buying their products rather than those who resort to unfair market practices.