Between state, federal, and local law, most manufacturing companies are governed by dozens–if not hundreds–of regulations regarding everything from manufacturing process to working conditions. Though the vast majority of small and medium-sized business owners do make an honest, good-faith effort to protect the safety of their employees and the integrity of their products, the truth is that a surprising number of businesses are not in total compliance with all laws. In this article, we will discuss why this lack of compliance matters–and what business owners can do in order to ensure that they are complying with all applicable regulations.
Why Compliance Matters
- Safety. The most obvious reason why compliance matters: you want your employees and your consumers to be safe, and compliance with regulations is the best way to accomplish this.
- Legal Liability. Should an accident or another misfortune occur, both you and your company will be in far better position to prove that you were not at fault if you were in compliance with all regulations.
- Fines. Even if nothing negative comes directly from being out of compliance, your company can still be fined if such a discrepancy is discovered.
- License issues. In some cases, these fines are not going to be your biggest concern: depending on your industry and your location, you may have various licences revoked–thus affecting your company’s ability to continue operating as normal.
- Employee morale. Employees tend to be happier and more productive (and to value safety more themselves) when they know that their company takes their safety seriously.
- Brand Devaluation. Should your lack of compliance become public knowledge, your company’s reputation can suffer grave harm.
How to Increase compliance
- Create a culture of compliance. Stress to your employees that compliance is important–and reward those who take it seriously.
- Perform an internal audit. This will help you discover any potential problem areas.
- Get organized. The more organized your production process in general, the easier compliance will be. Visit SMe Software online to learn more about how manufacturing management software can help your company get more organized and efficient.
