Legislation & regulatory initiatives are designed to manipulate social behavior via financial rewards or penalties.  Consequently, compliance is not a goal, but rather a requirement that must be consistently proven.  Organizational acknowledgement and understanding are achieved through a robust Communication & Education process that is effectively integrated, tracked, and measured in terms of relative compliance to those processes, practices, and procedures.  Founded on the establishment and implementation of policies, there’s more to legislative & regulatory reporting than what can be discovered in the business’ financials (Sarbanes-Oxley).

Where one falls on the continuum of favoring more or less regulations generally aligns with one’s faith & confidence in the human spirit to naturally do what’s right or not.  Thus, organizational behavior and culture are reflected in compliance to rules, regulations, and policies.  From data privacy and security (Zero-Trust) to environmental (Zero-Waste) practices, corporate stewardship is becoming more valuable to shareholders.  Policy formulations must be far ahead of forthcoming regulatory requirements, especially when it comes to technology utilization.  It usually starts with expecting the unexpected to protect end-users and the overall organization.

With a focus on risk mitigation & reducing costs, Total Cost of Ownership (TCO) controls have become mission critical when competing for limited resources & capital.  So the great organizational challenge over the next couple of years will be how to most efficiently invest in regulatory initiatives and forthcoming imperatives such as Environmental, Social, and Governance (ESG) without a level playing field in terms of reporting requirements.  Combining the generally accepted environmental impact metrics produced by the Electronics Environmental Benefits Calculator (EEBC) with the financial reporting most commonly accepted Return on Sustainability Investment (ROSI) measurements is a good starting point once an organization’s policies are established.  However, prioritizing cost reduction initiatives are usually found to be contrary to ESG investments and in turn improved financial returns over time.  Reducing costs & controls can quickly & easily lead to losing valuable information and we all know that data is in fact the lifeblood of every business.  Based on the fact that value is in the eyes of the beholder, long term shareholder value can be assessed in more than an organization’s financial reports.

I’d suggest investing & aligning with Corporate Governance is a pragmatic way of ‘starting with the end in mind’ because at the end of the proverbial day, Dr. Barb has long said that “if you can’t report on it, you can’t manage it”.

Bottom line, policies are the backbone of every organization and regulatory compliance is the bare minimum when it comes to reporting requirements.  Without lifecycle management policies, an organization is at significant risk of data breaches and socially responsible investments in spite of cost reductions resulting in enhanced profitability.  Afterall, shareholder value & social consciousness are primary drivers of innovation & capitalism. So as the regulatory pendulum continues to sway, stay focused on doing and delivering the right results in the long term at the expense of short term thinking and profits.  Technology will long be an enabler and your valuable data must be protected, so as Eric Clapton sings, “it’s in the way that you use it”!