No matter their size or type, Maryland businesses will have to follow some sets of government regulations. Between federal, state and local authorities, the government exercises a lot of oversight over the Baltimore area’s business world. There is little doubt that businesses will in some way have to adjust their strategies to make sure they are following the law.
The consequences of not doing so can be serious. Most government agencies have the authority to impose fines, which sometimes are quite hefty. In serious cases, a government agency can even cripple a business by taking away its ability to operate legally or imposing such severe penalties and restrictions that the business cannot go forward.
Moreover, a business that is constantly running afoul of government regulations will likely receive some bad press and may suffer reputational damage as a result. A business’s cavalier behavior with respect to government rules may also come up in a lawsuit against that business.
A business’s regulatory compliance strategy will depend on its situation
Albeit in the context of employer-employee relations, the University of Scranton offers a helpful definition of regulatory compliance. The reality is that there are some rules and regulations, like employment-related laws, which most businesses will have to follow or at least be aware of.
Other businesses may have to work with agencies because of their industry of choice. To give just a couple of common examples, gas stations will need to be aware of certain environmental laws, and restaurants will no doubt work closely with local health authorities.
Basically, regulatory compliance is the overall strategy a business will use to identify what laws they are required to follow and how they will follow those laws. Regulatory compliance balances the needs of the business to follow the law and to remain profitable. Striking this proper balance will require a solid understanding of the law as well as the ability to apply those laws to a business’s situation.