Regulations, Benefits and Impacts of

Regulations will have financial and time consequences to implement and a balance is continually being sought by politicians to ensure these are more beneficial than disadvantageous and burdensome. Some of the overarching consequences of regulations can typically be that they do not detract from delivering safe and healthy environments and workplaces, as well as competitive marketplaces.

Benefits and impacts of regulations can include the following, although the balance between perceived and actual benefits and disadvantages will vary depending on those affected and costs of implementation:
• Provides a framework in which to operate a business.
• Makes individuals and businesses more accountable for their actions and decisions.
• Improves contracting procedures, improving anti-competitive practices, price fixing, bribery and corruption.
• Improves business reputations, providing more confidence that a business is operating appropriately and not causing harm to the environment or customers.
• Provides better customer protection if products are faulty.
• Encourages reduction in waste from products and processes, as minimising inputs reduces potential outputs and subsequent waste and thereby contributes to improving the sustainability and profitability of a business.
• Drives innovation, lowering cost, improving quality and ensuring more products are fit for purpose. If potential pollution costs are internalised, rather than externalised (for free), then there is an incentive to reduce costs.
• Increases competition where a more balanced playing field exists for regulatory requirements.
• Encourages a more cost-effect approach for products and services.
• Reduces insurance premiums because inference of regulatory compliance is that appropriate processes and procedures are in place.
• Reducing pollution and environmental impact, whether to the air, soil, water or wildlife.
• Provides a healthier local environment, reducing potential respiratory problems.
• Improves employee working conditions and worker rights, in particular their conditions of employment.
• Provides a healthier and safer working environment. Use of products is safer, for example, with improved machinery guards, reducing noise pollution, improved manual handling practices, or reducing vibration effects form machinery.
• Reduces accidents and incidents in the workplace.
• Supports professional development and improved skills within the workplace, especially where mandatory certificates and qualifications are required, for example, in the safe use of pesticides.
• Reduces exploitation of employees.
• Improves productivity, with less time taken off work for injuries and sickness.
• Meets minimum material and product quality and safety standards, by encouraging conformity to standards.
• Ensures compliance with the law.