Wednesday, August 1, 2018

Compliance of Business is Good for Business of Compliance but Great for the Society

These days business enterprises are supposed to ensure their compliance to various laws and regulations.

Over time, the list of such laws and regulations has kept on growing in size.

A very recent example being Data Privacy Laws.

On 28th May 2018, in the European Union, EU GDPR, a reformed legislation on Data Privacy came into effect which lays down rules for the protection of personal data of EU residents both inside and outside the EU.
On 27th Jul 2018, in India, the Government released Justice BN Srikrishna Committee of Experts Report on Data Protection as well as a Personal Data Protection Bill, 2018.
One important point that emerges when such a thing happens is that the compliance of business results in a positive impact on the business of compliance.

The business of compliance is a lucrative one.

Whenever a new act of law or legislation comes into force, it acts as a force multiplier for those in the business of compliance.

The advisers, consultants, auditors, lawyers and other experts find that there is sudden surge in their demand.

Obviously, increased demand means increased earning potential.

The business of compliance loves changes in the landscape constituting the compliance of business.

New laws, new regulations, new legislation are all good news.

Compliance of business is good for business.

For the organizations, however, this increases the cost of compliance and hence the eventual cost of doing business.

Which is eventually passed to the buyers and the consumers.

This is all fine because many of the new laws, new regulations, new legislation arise due to the ever evolving needs of the society, the buyers and the consumers and also several other stakeholders.

Governments and legislators read the signals and legislate new rules and regulations to keep pace with ever evolving needs of the society, the buyers and the consumers and also other stakeholders.

In summary, it can very well be said that compliance of business is good for business of compliance but great for the society.

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