If you are trying to own and operate a business that is upfront and transparent about its practices, then you have to have a firm understanding of how to follow the rules. It’s not enough just to intend to stay on top of various regulations – you have to read the fine print and understand some of the underlying language in order to keep yourself risk-free completely.
If you end up on the wrong side of following the rules, the consequences can be immediate and severe. If you’ve ever seen reports of businesses that have cut corners or assumed that they didn’t have to follow specific guidelines or regulations, then you can see how much negative attention is attracted from those practices.
Consider rules in a few categories as they relate to businesses. There are laws about gifts, travel, and entertainment. There are OSHA regulations to follow for employee safety. And there are many instances that you can look up of corruption cases and consequences that have bankrupted companies and even put people in jail.
Gifts, Travel, and Entertainment
When your company is giving or receiving gifts, travel, and entertainment, sometimes some rules need to be followed regarding reporting the valuation associated with each item or activity. Especially when it comes to dealing with foreign governments, business gifts can be seen in a very negative light, particularly through a world lens of politics and global regulations. You might think it’s okay to give the owner of a company a gift from your company, but if you don’t report it in the right way, regulators can potentially find this discrepancy, and there are harsh financial penalties if you are found out.
Every business has to follow OSHA regulations. Even if as an owner you don’t understand why some of these regulations are in place, it doesn’t give you free rein to disregard the safety of your employees. In most instances, if you accidentally run afoul of OSHA regulations, you can quickly fix it, and there will be no fine in place. However, for repeat offenders, there are severe financial and social consequences if you don’t prioritize the health and safety of your employees and their workplaces. Follow the rules, and you’ll have no problem.
Unfortunately, the business world is full of corruption. You can look up recent corruption cases around the world, and you’ll see that corporate corruption is rampant everywhere. Egotistical or power-hungry owners feel like they can bend the rules for their own financial advantage, and investors and employees will eventually pay the price. If you want to avoid the negative associations of corruption, make sure that everything your business does is entirely above ground.