Business owners and executives tend to cringe at the thought of government regulations. After all, regulations usually mean restrictions—they inhibit us from running the business the way we want to run it; we feel that we know what’s best for our business, and the government just doesn’t understand because the people making the regulations have never stood in our shoes.
And there is absolutely some truth in that. We’ve all come across government regulations that don’t make much sense to those of us actually working in the business world. For instance, the ever-shifting rules of the Affordable Care Act, overtime rules that actually make it harder for employees to make more money, and required gender-based salary data reporting can all create a huge time drain for company administrators.
However, not all regulations are bad.
In fact, having some regulation is mandatory to ensure a level playing field for competing companies.
When small business owners were polled, they overwhelmingly acknowledged the need for some regulations. Eighty-six percent said some regulation is necessary for a modern economy and 93 percent said their business could live with some regulation if it is fair and manageable.
Reasonable regulations help to create a framework in which businesses must operate—companies with a strong ethical sense should cheer these regulations because they can create checks and balances on less scrupulous companies they may be competing against. Additionally, regulations can help to protect the overall perception of your industry; any business that has ever had to deal with the headwinds caused when the industry is tarnished by someone else’s actions knows it can be daunting.
Without picking on any one company, just look at how various social media and technology companies have been abused by bad actors in the last year or so—it seems clear that some level of oversight, while potentially inhibiting the growth of those companies, would have helped the greater good.
Certainly, there are too many regulations placed upon businesses today. Many of them make no sense when practically applied to operating a company. However, some rules are needed. We urge all business owners and executives to stay abreast of industry regulations, and to get involved with elected officials and policymakers to work towards creating regulations that make sense to create a better business environment.
Contact us at 215.441.4600 or Email if you have questions or would like to discuss how this topic may impact your business.
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