Reaching compliance provides a number of benefits to all kinds of businesses. By the same token, non-compliant businesses expose themselves to a number of risks.

Whether it be financial loss due to quality lapses, legal damages due to safety oversights, failure to compete among compliant businesses or casting doubt over your products and services, non-compliance can stifle business growth.

We examine 4 ways non-compliance can cost you money.

1. Non-Compliance Makes You Vulnerable to Financial and Legal Damages

There’s a staggering list of businesses who have been financially ravaged by compliance failures. From automotive companies like Jeep and Subaru, international groceries like Tesco, and Australian construction firms, compliance oversights have affected just about every industry in the last few years. 

Europe’s 2013 horse meat scandal is one of the most high-profile instances of severe non-compliance, in which Tesco reported losses of around 300 million pounds. 

In 2016, the Canberra Times reported that five of the capital’s construction sites were ordered to stop work after “an audit of crane activity revealed widespread non-compliance.” 

“The audit found poor work health and safety compliance across the board, Among the specific problems discovered were: non-compliant zoning and anti-collision systems, failures to verify electrical supply and wiring systems, inadequate or non-existing emergency rescue procedures and at least one failure to complete a site-specific risk assessment,” they said.

The crane audit followed a series of serious incidents on construction sites in Canberra, including the death of a 62-year-old worker.

2. Reaching Compliance Can Drive Efficiency and Reduce Cost

Becoming compliant to a standard doesn’t only safeguard your business against potential losses, it actively drives efficiency and reduces wasted spending. A compliant quality management system, for example, ensures every arm of your operation is designed to deliver consistent high quality to your customers and clients. 

Without implementing industry best practices, your business could be suffering from inefficiencies and excess waste.

3. Reaching Compliance Makes You Competitive in Your Industry

Businesses that aren’t certified to an internationally recognised standard can struggle to compete among businesses that are. Some businesses may be compliant to a standard, but not certified. Even these businesses can struggle to make ground in a competitive market.

Reaching compliance and becoming certified to a standard ensures your business is regarded as the cream of the crop. Certified businesses are awarded a certification badge, which should be used online and on physical assets.

The Rainforest Alliance Certification is a popular example of the marketing power of compliance certification. Much like consumers in the coffee aisle who favour Rainforest Alliance Certified products, your clients are looking for a reason to select your business over others.

4. Non-Compliance Casts Doubt Over Your Products and Services

Without demonstrating a commitment to quality, the environment, WHS, security or whichever standard is relevant to your business - you cast doubt over your products and services.

For example, consider you run a construction business that isn’t certified to quality management ISO 9001, environmental management ISO 14001, or WHS management AS4801. When it comes to tender, you’re unlikely to win a project over a business who is certified to these standards. In fact, most local, state and federal government projects require compliance certification before even accepting your tender. 

To get in touch with a Compliance Council compliance consultant, or for more information on reaching compliance to these standards, leave us a message below.