Corporate Compliance Explained
The most successful businesses are built on trust, whether the trust of individual customers coming in to purchase a product or service or clients who have enjoyed a certain level of quality and keep coming back to a proven reliable business. However, this trust, while built on the reputation and practices of the companies, is also built on official recognition. To be considered a legal business with a certain minimum standard for professionalism, all businesses must be compliant in one way or another. But how is corporate compliance achieved?
Different Businesses, Different Regulations
Businesses have some basic distinctions that separate them from each other. For example, there is a huge difference between a company that provides a service versus a company that sells a product. Renovating a home is very different from selling shoes. As a result, based on their focus, these businesses will also have additional regulations governing them.
Corporate compliance is about knowing what regulations, permits, and licenses are required for a business in general and what specific rules, licenses, and practices may be required for a particular company. So there may be some general regulations to remain compliant with, such as tax regulations for every business. But a restaurant must also be compliant with food and health standards practices. On the other hand, an accounting firm will need to remain compliant with certain financial regulations.
Location Matters
Corporate compliance may also be determined by the location of a business. Different states will have various regulations, licenses, or permit requirements, which are often supplemented by specific locations. Some counties will also have county regulations that must be observed, while others will not. Then there are local ordinances and regulations, especially about zoning and property, that vary from one town or city to the next.
Internal Practices Are Also Important
It’s critical to understand that remaining compliant is not just a matter of obtaining the correct license or permit. Depending on the business, certain practices must also be observed. In the food and beverage industry, it’s critical to ensure that employees, especially those actually working with food, are correctly maintaining health and safety standards for both the cleanliness of the environment and the safety of food and drink created in that environment.
If employees can’t be a part of maintaining the practices to remain in compliance with a specific business’s regulations, falling out of compliance—and subsequently good standing—is never too far behind. Corporate compliance is a matter of getting the right permits, keeping licenses up to date, and maintaining the designated practices for a specific business.