If you’re not fostering a culture of compliance with external regulations and internal policy, your company risks employee injury, fines, legal settlements and potential losses in sales, stock value and brand reputation.
A strategic approach to implementing a compliance mindset in your organization can guard against this. It’s a significant change with significant rewards.
Many companies consider compliance to be a costly annoyance that at best keeps them off the radar of regulators and at worst negatively impacts the bottom line. In reality, companies perform better and are more likely to achieve their objectives when compliance is a key component of their culture—that is, when compliance becomes a component of their growth strategy.
A successful compliance program isn’t about rules – it’s about people. It should protect your employees and communicate your company’s values and principles. And that starts with compliance training that engages employees and empowers them to make the right choices every day.
Fostering an ethical culture and integrating compliance to support business objectives has many benefits, including:
A well-planned compliance strategy can help companies grow revenue in many ways, such as:
• Winning or retaining contracts that have safety or other compliance performance requirements.
• Enhancing brand image and reputation, which may attract more customers who are willing to pay premium prices.
• Attracting high-caliber employees who want to work for a company with a reputation and culture they can be proud of.
• Driving positive business impact, motivated employees are more productive and make decisions that benefit the company and their fellow employees.
COST AND RISK REDUCTION
• Improved compliance may lead to fewer safety issues, reducing claims, fines, penalties, injuries, or death.
• Companies that adequately manage workplace safety and health performed better financially than those which did not, according to a study by Harvard Business School.4 The study found that within high-hazard industries in
• Keeping employees safe reduces lost time incidents .
• Improved safety records may result in reducing the economic impact of worker’s compensation and related expenses, lost production time, employee absenteeism, job accommodations, and restricted work efficiency.
• Fewer on-the-job injuries leads to reduction of legal expenses and penalties associated with violations, citations, and injury cases.
• Safety compliance training may result in savings on incident review, process modification, disciplinary actions, and cost of replacement hires.