What does Compliance Mean for Small Businesses? Compliance as a service means a business following all of the laws and regulations regarding how they deal with their clients, their workers, and their products. Any business that is not following or ignoring regulations related to health and safety, fair treatment, and the environment can be fined by the state, and even forced to pay damages and attorney costs.
When we say that Business Compliance is important,
what we are really saying is that it is crucial to Business Success. This goes for any business starting out, growing, maintaining, expanding, franchising, or retailing. Every business has regulations that have to be followed or else penalties will be imposed. It doesn’t matter if the regulations are meant to protect the public, or prevent harm, they have to be followed.
Recently, there has been a lot of news about Business Compliance and Corporate Compliance Management. There are many types of businesses that fall into the Business Category; this may include franchise stores, service providers, small privately owned restaurants, hotels, financial institutes, and technology companies. Each type of business has different regulations that need to be followed, as well as employee protection requirements. The number one area that faces the biggest regulations is Health and Safety. Hospitals, doctors offices, and nursing homes are all required to follow standards set by the U.S. Department of Labor’s Office of Worker’s Compensation Programs. However, some small businesses complying with the OSHA regulations are in violation of their own business owners right.
There are several instances that we hear about business owners not being in full compliance with OSHA regulations. For example, one very popular food chain had three employees each earning over a hundred thousand dollars per year. Three employees, earning over a hundred thousand per year, that don’t have health coverage, is obviously a risk. Yet the business was still allowing them to buy large amounts of food in bulk, without any insurance and under the table. Another example involves Franchise Tax. Many Franchise Tax exempt businesses do not offer insurance or the services that are offered by a business with full compliance with Franchise Tax Regulations.
Many Franchise Operators fails to report changes in accounting policies,
or change their operating agreements because they don’t view these items as a liability, but rather an investment. These issues are often overlooked until a major issue arises, resulting in millions of dollars in lost revenue for the business. As business operators, franchisors should always consider these factors before signing any contracts, operating agreements, or annual report deadlines.
Businesses should consider the cost to be in full compliance with OSHA, as well as the cost to lose business due to employee injury, or wrongful death. Employees are the greatest asset of a business and this can mean the difference between making a profit and losing it. We are seeing more businesses that have negligent employees suing their employers for being injured on the job or having to pay out-of-pocket settlements for wrongful deaths. Every business needs to make sure they comply with all applicable regulations, and are fully in compliance with OSHA and BBQP, but every business is different.
- Business Compliance also refers to the policies, procedures, marketing, policies, training, and business practices of the company.
- All business owners and officers should have a thorough knowledge of their company regulations
- Be able to explain them easily and clearly to new employees.
Business Compliance also requires that all employees understand and know their responsibilities towards their fellow co-workers, customers, vendors, and society at large. Business compliance is most effective when there is consistent communication between all parties involved including management and staff.
Operating manuals and procedures can help managers learn the basics of business compliance. However, if a manager is unable to explain the basics of safety or health at work to their team members, they may not be fully compliant with OSHA, or the law. There are many consultants and lawyers specializing in OSHA and business compliance, so if there are questions or issues regarding OSHA or business health and safety, it’s best to find an expert to handle it. To find an expert, simply search for “OSHA consultant” or “BPE” (business safety and occupational safety) online.