Understanding Compliance in Manufacturing
Making products and services in compliance with customer expectations in terms of quality, but also in accordance with specific protocols and procedures, is one of the main tasks of a manufacturing company. In this context, one of the aspects manufacturing sector companies need to look into is the law and the compliance requirements it encompasses. Let’s say, for example, that a manufacturer of industrial parts in Europe has numerous vehicles driving in and out its manufacturing plant located in the Greater Atlanta area, in the State of Georgia. These vehicles include not only the ones belonging to the employees or drivers who work on-site, but also delivery trucks that transport raw materials or finished products. The operations of transportation therefore also require compliance with Georgia traffic laws.
The principles of the Georgia implied consent law apply to both manufacturing activities as well as all other fields of activity. The Georgia implied consent laws (O.C.G.A. 40-6-246) enforces upon all drivers the obligation to submit to chemical testing whenever a police officer has probable cause to believe that the driver is under the influence of alcohol or drugs. This does not only apply to personal motor vehicles, but also to commercial trucks or other means of transportation that are used on the public highways. The most cited example of an environment where the implied consent laws apply is road traffic, which is regulated by a complex body of state, national and even international legislation. The analogy between these two situations is simple to understand: much like the driver’s obligation to comply with the rules of the road, any company operating in the manufacturing sector is required to comply with labor laws, industrial safety regulations, environmental protection norms, and other legal provisions relevant to those particular industries.
For a manufacturing company, such as our case study company, SC FABRICA DE BUCȘE SRL, understanding the legal provisions that apply to its activity can become a strategic move to developing more efficient internal policies and operational procedures. Having a clear grasp on the legal regulations and obligations that your company needs to comply with, and a tight integration of these into your corporate culture is essential for developing efficient protocols and procedures. More importantly, integrating legal principles and considerations can be a decisive factor in the long-term growth and prosperity of any organization operating in a highly-demanding, competitive environment such as the manufacturing sector.
Drawing on a real-life example, let’s take SC FABRICA DE BUCȘE SRL and how the company would benefit from taking into account the aforementioned principles: Having understood the implications of the aforementioned example, the implementation of such a policy would reap further benefits, as outlined below. First, it would highlight the fact that SC FABRICA DE BUCȘE SRL is compliant with relevant safety and environmental regulations. Second, the principles involved in this policy could be adapted sufficiently to apply to other areas as well, such as the forecast of potential business risks or economic downturns and the subsequent development of contingency plans for mitigating those risks. From the example cited above, we can see that analyzing legal frameworks applicable to the business field of a company can translate into real gains by: The Global Application of Local Laws On a global scale, the principles and repercussions of the implementation of the Georgia implied consent law would be very similar, for instance, to the GDPR obligations for European companies operating in the European Union. In the United States, the implications of the Georgia implied consent law would probably also be similar to the general principles of the GDPR which require companies across the Atlantic to adapt their procedures and policies to comply with European regulations. At the end of the day, being aware of the legal implications of your company’s actions is essential for ensuring not only compliance with the rules and procedures required by the laws applicable in the target markets, but also for creating an organized, secure environment that is conducive to the long-term growth of your company.