If you think compliance is expensive – try non-compliance. Most small businesses treat compliance as a secondary function with little consideration of the consequences. This approach is fraud with danger. It reflects a naive and narrow view of corporate compliance.
The directors could well face criminal charges, the business could suffer reputational damage and will probably suffer from a loss of business opportunities.
Criminal charges
Regulatory non-compliance in areas pertaining to staff management, workplace safety, marketing, supply chain, corporate governance, stock management and due diligence laws could result in jail time. Compliance is expensive- try non-compliance
Reputational woes
Public image is key to business success. When a company is thrust into the public eye for failing to comply with regulations, there are reputational repercussions, which eventually lead to distrust. Once that happens, loyal customers may leave, new customers may be put off and potentially beneficial partnerships may never develop.
Loss of lucrative opportunities
Non-compliance across your enterprise and business network could result in exclusion from the public sector tendering process and supplier database. In addition, companies that place value on corporate compliance may avoid doing business with you as they would want to ensure that they meet their own regulatory obligations.