Forbes: The Critical Role Regulation Plays In Business Success
POST WRITTEN BY
CTO and Co-founder of mobile growth marketing platform YouAppi, bringing nearly 20 years of R&D experience to make mobile engaging.
Go back 30-plus years to the dawn of the free and open digital age, when it seemed only fitting for the World Wide Web to essentially police itself. Times change, however, and advances in data collection and storage capability mean that highly personalized information has become a prized commodity. A system based on majority goodwill and a small-print contract that nobody bothers to read won’t cut it anymore. Should the industry expect more regulation? Can it, in fact, be welcomed?
Regulation Rewards Sound Business
Ideally, companies govern themselves based on ethically sound principles and the collective good, but this isn’t always the case. Our global economic system has demonstrated time and again that government regulations aren’t just necessary — they often yield great value for consumers and businesses alike. In fact, as technology changes business and new businesses come into the market, regulations can help manage processes and pave the way for fair competition.
Government intervention suffers from a bad rap as it’s seen as anti-business and overly restrictive. This can be true, especially when government oversight forces businesses to adapt — often with both technical and operational investments — which affects top and bottom lines. However, when regulations are tailored fairly and effectively to each industry and involve input from experts in the space, they can serve as a catalyst to better business practices.
Experience shows us how regulation helps businesses respond to societal change, particularly when technology is involved. Most businesses implement internal regulations to serve their company more directly, but these often fail to be comprehensive, and compliance wanes over time. Thus, diligent governance provides accountability and encourages good practice.
Simultaneously, companies that follow fair and effective regulations breed a sense of trust among their customers. Being able to tout compliance as a benefit usually acts as a competitive differentiator that attracts new customers.