Not every company is on the same page when it comes to understanding the current environmental compliance landscape and how their products match up against these initiatives. Some are just finding out these requirements as they expand into new markets, some have read news articles about what is to come, and some sadly heard about it a little too late. Regardless of your savviness regarding environmental compliance, there are several realities that you should embrace: regulations are serious, they reflect your regard for protecting consumers and the planet, but most importantly, they are a double-edged sword - and you must decide which end you’d like to wield. To help you decide, I have two stories that each describe accurate outcomes that result from deciding how you are going to treat a compliance strategy.

Let’s start with the happy one – embracing environmental regulations and incorporating them into your company’s processes in designing new products. In this scenario, you have proactively tracked the material content of all supplier components and have incorporated only “green” parts into your Bill of Materials at every level. You have published compliant statements on your website, and can provide detailed information on the safety and composition of your product. This situation is ideal, because you have protected yourself from consumer lawsuits, from seized products in customs, and from a potential audit shutting down your manufacturing lines. You are regarded as a proactive and responsible company that sets you apart from the competition. A small proactive effort pays dividends in the long run because you have planned and exercised due diligence. This story is short (not to mention a little boring, which can be a really good thing) because there is no suspense and no surprises in the future even if your products undergo an audit.

Now let’s assume for a moment the other story - your company has not adopted product compliance practices. An independent study has linked your product to injuries sustained to multiple consumers, and the FDA has initiated an audit and inspection of your company’s manufacturing lines. You have been hit with multiple accounts of non-compliance and negligence on your part. Not only are you forbidden to release product, you have many other harrowing obstacles that stand over you. You must expend time and money to reengineer one (or multiple) product lines, you have legal fines to pay out to consumers, and you have fines and increased responsibilities with the agencies that enforce the regulations that you’ve broken. If you are ever able to unbury yourself from this chaos, you must then face the social media impact you have unleashed on the global audience. Many times, just the fact that you are in the negative spotlight can reduce or cripple your margins and your future success as a company.

If you look back several years ago, you may remember the news stories covering the product recalls by Mattel, one of the largest toy manufacturers in the world. Numerous other examples include harmful bacteria infestations in foods, harmful pharmaceutical drugs, automobile recalls, and overheating mobile batteries. While it is difficult to identify these issues before they are released into the market, they are most always preventable by taking proactive measures to combat complacency and gaps in QC measures. This ebook was written for the food industry but it contains information useful to any company working in any industry.

It is important to note that the frequency and impact of compliance audits will continue to grow year over year, and all companies will have to face this at some point in the future. Sure, these companies have failed audits and have fought through the consequences of being non-compliant. They have overcome these situations and still operate today. But many are living with mistakes that eat away at their bottom line and restrict them from reaching their potential level of success. The question you have to ask yourself, are you willing to take that risk?

To learn more about compliance, check out our latest webinar.

[Edit: Repost from 2015]