Compliance as a competitive advantage
“While some requirements are legally imposed, there is a growing number of voluntary standards that don’t require compliance by law. These are considered industry best practices,” says David Swillen, senior consultant at delaware. “Whether mandatory or not, compliance certainly helps companies avoid costs associated with fines, returns or claims, liability and reputational damage, while the standardization it implies boosts efficiency."
“In addition, more and more companies are deciding to certify to acquire voluntary labels like the EU Eco, FSC, Rainforest Alliance, V-Label vegan and Fairtrade labels. Complying with the requirements of these labels offers a true competitive advantage: they reinforce the brand and may open up new market opportunities. From a financial point of view, such compliance helps firms raise turnover, improve their margins and, hence, drive profit, as consumers are quite willing to pay extra money more for products with specific labels that meets their preferences, way of life, etc.”