Corporate Compliance Affects All Levels

Staying within federal, state, county, or city/town corporate compliance is crucial to a business remaining in good standing with the government and being allowed to operate legally and with a clean reputation. However, staying compliant can sometimes require the participation of all levels of a business.

Keeping a license valid and remembering to renew it is the type of compliance that largely falls on the shoulders of a business owner, but when it comes to some types of regulatory requirements, this means maintaining practices and discipline within the company that employees must be aware of and adhere to.

Policy Is Crucial

Different businesses will have wildly different regulatory obligations. A restaurant, for example, will have health and safety regulations ensuring that food is safely prepared so that customers can eat without any concerns of illness from contamination or poor food preparation practices. On the other hand, a construction site may have specific regulations for maintaining a safe environment for employees.

In both of these cases, these businesses require that the employees themselves put into practice the actions necessary for a company to remain within corporate compliance. In other words, it is up to the business owners to set policies and provide instruction and guidance on the actions employees should observe for that business to remain compliant.

Create a Clear, Enforceable Policy for Corporate Compliance

It is important when creating company policies for compliance to ensure they are simple and clear to follow. Clearly outline the expected actions or the restrictions that must be avoided.

Examples are also important. Having a policy is one thing, but it is much easier for employees to understand what is expected of them if they have a reference to fall back to. Examples of cleaning a food preparation station or proper sales accounting at the end of the day are important.

Explain the purpose. Employees may question why particular actions or policies must be taken. This should not be a mystery, and being able to point out an existing regulation to comply with makes it clearer to everyone why certain actions should be taken or avoided.

Be flexible about exceptions and circumstances. While corporate compliance with regulations is important, sometimes mistakes happen, or extenuating circumstances may require not following through, such as someone leaving before proper cleanup due to a family emergency. Knowing when disciplinary actions are appropriate and when taking a more understanding approach will provide a more supportive learning experience.

Just remember that in the same way no one person can run a business past a certain size, corporate compliance should be a policy for employees.