Speed limits are present to protect not only the driver but others on the road. And just like in your everyday life, there are rules and laws in place when it comes to business. These laws and regulations exist to protect both citizens and businesses, similarly to speed limits. Other business regulations are created to correct market failures, as well as making life a little easier both as consumers and business people. It’s easier to see the benefits as consumers to these regulations, but let’s take a look from the other side as business owners and employees.
First things first, regulations impact a vast range of areas on our lives. They can help give us lower prices due to increased competition, greater peace of mind in saving and borrowing, increased safety in our journey to work, and confidence in the food we buy and the aspirin we take. In more recent years, regulations have also been created to incorporate the changing business environment that technology brings.
Regulatory agencies serve two primary functions in government: they implement laws and they enforce laws. Regulations are the means by which a regulatory agency implements laws enacted by the legislature. You can think of regulations as formal rules based upon the laws enacted by a legislature that govern specific social or economic activities.
There are also different levels of regulations: federal, state, and even city. They can affect society as a whole, like the Federal Reserve Board monitors the economic state of the country, or on a smaller level, like noise ordinances for your community. On the most basic level, regulators ensure that licenses are up-to-date and present when necessary, from business licenses to licenses that personnel are required to have.
But what are regulators looking for: well, they’re making sure you’re following the laws. They want to make sure you’re filing for licenses, following OSHA (Occupational Safety and Health Administration, https://www.osha.gov) guidelines, and protecting employees.
Regulatory agencies are required to post the rules and laws that they enforce. We always recommend knowing these like the back of your hand. But it’s important to note that with the changing role technology plays into businesses, these regulations are subject to change to incorporate the evolving markets and technologies.
For more information about how to find what regulatory agencies are looking for, visit embedded-knowledge.com.