When it comes to businesses, there are certain codes and regulations that are required to ensure these entities remain ethical and law-abiding.
Put simply, the term ‘compliance’ means sticking to the rules.
Originally, it was used in the US financial system, but has expanded to be commonly used across all industries.
Each sector has different rules that they are required to comply with and in each aspect of the business, there are things that require compliance.
Although it may seem simple, compliance is an important and often disputed topic...
Why Compliance Is Important
There are two main reasons why complying to the regulations of your industry is important for a business.
The first is so that you can avoid criminal proceedings.
Just like an ordinary citizen, if a company does not comply with the regulations and laws of their country, there will be consequences. The penalties can range from a slap on the wrist to sanctions and fines to imprisonment.
The second reason is the assumption of social responsibility.
This refers to the ethical aspect of compliance and the expanding public discourse on corporate social responsibility.
Those businesses that face up to social issues and demonstrate their commitment to them, particularly on topics such as sustainability, the company’s own values and how they treat their clientele, will generally have a better reputation and improve their business relationships.
The Link Between Compliance And Customer Complaints
One part of business that almost always has an element of compliance to handle is customer feedback.
When a customer complains about an issue, it is best practice for the business involved to follow up that customer…
Ignoring the feedback won’t just impact your brand’s reputation, but also might mean you are not being compliant to your industry’s regulations.
For example, the financial services industry is operating under Regulatory Guide 165, but will soon shift to the new compliance guidelines of RG 271. Within the guidelines, there are enforceable paragraphs about internal responses, managing systemic issues and the timeframe of resolutions.
Similarly, there are also regulations that those in the education sector need to comply with. These refer to the requirements to have clear procedures in place to deal with complaints.
How Do You Ensure Compliance?
When it comes to customer complaints, it can be difficult to stay on top of compliance requirements while also dealing with industry nuances and the complaints themselves.
Without an integrated and intuitive system in place to deal with complaints, it can be especially difficult.
Who Can Help With Compliance?
Causia’s® industry specific complaints software has in-built features to ensure compliance to Australia’s industry standards.
Trial Complaints Pro® today to see how it can improve your business and get you compliant!
