The Necessity of Business Compliance Programs in Chicago
Modern businesses are anything but simple, and there are a myriad of practices that must be followed if you hope to have any chance of success. New start ups and mature brands alike need to observe laws, rules, and regulations imposed by the government. However, sometimes shortsightedness creates a failure to comply with a multitude of constraints. In the end, a business leader will become full of regrets and forced to implement a compliance program anyway. Some of the dire consequences that arise from a failure to follow rules and regulations include steep fines, penalties, and can even result in the cessation of your business. The following are some examples of the more well-known compliance guidelines that need consideration.
Antitrust laws, which are commonly referred to as competition laws, were created by the FTC (federal trade commission) to regulate free market competition. Antitrust laws exist to protect our economy from corruption. For example, the Sherman Act helps to regulate our economy by outlawing monopolization and other acts that harm fair competition.
A failure to adhere to these rules will leave you in a world of hurt. Whether an act was committed intentionally or unintentionally due to ignorance, there will be dire consequences. The Sherman Act is enforceable as civil or criminal and has the potential to leave a corporation with a 100 million dollar penalty or leave an individual with as much as 10 years in prison.
Foreign Corrupt Practices Act (FCPA)
The Foreign Corrupt Practices Act should not be taken lightly as it is federal law. FCPA adherence is relevant to your organization if you do business internationally. These guidelines impose standards and accounting practices as well as the obligation to make accountancy transparent. Additionally, the FCPA imposes guidelines to prevent unlawful payments to foreign governments and officials in payment in exchange for favorable treatment.
Essentially, one of the provision’s goals is to reduce instances of bribery and fraud. Again, if you get caught engaging in the unethical practices outlined in this act, you will incur extremely large financial penalties and potentially time in prison.
Federal Sentencing Guidelines
Federal Sentencing Guidelines are no laughing matter. They outline the details of how felonies and Class A misdemeanors will be punished. Let me be perfectly clear, if your organization or an individual from your organization is found to be in violation of governmental regulations, they will be punished to the fullest extent of the law. Negligence and ignorance are not valid defenses to the regulations and laws set forth by the federal government. For this reason, it is absolutely imperative to the success of your business to inform and educate employees that work in situations where there is a potential to break the law. If your employees and subordinates did not have access to proper resources, training, and education, the government may hold management liable for their mistakes.
About Compliance & Competition Consultants of Chicago
We are a Chicago based business helping companies comply with the latest rules and regulations to avoid consequences and major setbacks. Ignorance of the law can harm or even destroy your business. We are here to help you adhere to standards so your business will continue to run like clockwork. If you have any questions, Contact Compliance & Competition Consultants Today.