Compliance is More Than a One-Time Event | Part 2
Mar 28, 2016
Static compliance management is inherently risky. Failing to regularly manage and monitor compliance information beyond supplier prequalification can have large, potential negative impacts.
Brand image impacts can be far-reaching: Accidents on site can lead to critical, negative press coverage across the globe and calls for the retailer to be more involved in verifying the working conditions at supplier facilities.
Fines and penalties can be costly: If a workplace incident occurs, your organization could face substantial fines or penalties for working with suppliers that are not meeting your defined compliance standards.
Financial damages can be significant: Lawsuits, financial judgments, and the costs of stopping a project due to safety or licensing concerns can add up quickly. The opportunity costs of not doing business for this period can end up being a major factor that could permanently impact your business viability.
Active compliance management is a must: Compliance management is a strong business investment; the advantages of these investments highlight the importance of not only prequalifying your suppliers and contractors, but also tracking compliance information over the course of a supplier business relationship.