Legal
Issue No. 5 - April/June 2002
Is Your Business run by Control or Kismet?
by Michael Hegarty
We all like to feel that we are in control, particularly if we own or run a business. If we choose to be in business for ourselves, it is often because we wish to control our own destiny. We put in effort, achieve results and reap the rewards. Particularly for small business owners, this provides some sense of control over our lives; we are the business, and the business is us.
The tragic events of September 11 have shown how suddenly our world can change, and how powerless we feel when it does. Six months later, insurance premiums have risen steeply, causing serious concerns to all business owners and sounding the death knell for some operations.
We can’t control international terrorism, but there are many aspects of business which we can control. For example, we strive to control our business finances, and the importance of this has increased with the advent of the GST. Sometimes, though, we feel that those in authority seek to control us. We are apt to complain about continued interference in the way we conduct business. We have to comply with an ever-growing mass of legislation. I often hear complaints from business clients about the onerous task of complying with various pieces of legislation ranging from occupational health and safety to privacy. Sadly, it does no good to complain. It is far better to invest the same energy in establishing a program of active legal risk management. Whether we like it or not, the legislation is here to stay and we must comply or face the consequences.
How we maintain control is fundamental to our business. Most legislation can be accommodated within the way the business operates. Careful attention to legal compliance can actually enhance profitability. For example, compliance with Occupational Health and Safety laws produces a safer workplace, fewer injuries and lower insurance costs, and customers appreciate the transparency provided through having an effective privacy policy.
Assessing how l...
