Legislation and standards are important in any society. They play an important role in regulating business practices, creating new laws, and ensuring compliance with existing ones.
While these may vary from state to state, their base principle is equalizing the playing field in the business sector. Read on to find out why the Australian legislature is important and how it benefits consumers and business owners.
Why are Legislation and Standards Important?
Legislation and standards are important because they help protect the public, the environment, and businesses.
Generally, legislation is a law made by parliament or state legislative bodies. It tells businesses how to run by adhering to certain laws that ensure fairness and quality. These include everything from establishing store setups to manufacturing processes.
The legislature and standards may differ across the country, so check with your local government if you’re a business owner to see what’s expected of you. You can also check out a standard store whenever you need one.
As work structures evolve, these standards adapt to the times, ensuring that employers and businesses know their responsibilities to workers and the public.
Two Types of Standards: Mandatory & Voluntary
The legislature and standards fall under two distinct categories: Mandatory and Voluntary.
These are compulsory, and one can be penalized if their products don’t comply. They’re set by government agencies or organizations like Australian Competition and Consumer Commission (ACCC) in association with public and industry consultation.
These must be followed by all manufacturers, distributors, and retailers who deal in that industry’s goods or services. For example, mandatory Australian electrical safety standards apply to all electrical appliances sold in Australia (including computers).
Safety standards, for example, demand that all products abide by regulated guidelines. These standards apply to everything from product composition to manufacturing and packaging.
On the other hand, information guidelines state that sellers provide the necessary information on their goods in clearly labeled tags. These are to include any instructions or warnings associated with using the product.
While voluntary standards are not a must, they do, however, do good practice and are generally made by organizations like industry groups or non-government bodies. They may include guidelines for product design and performance requirements for certain materials used in manufacturing products.
These are sometimes called voluntary industry codes, such as ISO 9000:2015 (Quality Management System standard) and ISO 14000:2004 (Environmental Management System standard).
Benefits of Legislature and Standards
The Australian legislature and standards protect the country’s health, safety, and welfare. They also help to create a level playing field for all businesses.
In addition to protecting public health and safety, several other benefits can be realized from legislation:
- Ensures minimum standards for products or services
- Ensures quality of goods and services provided by businesses
- Ensures fair competition between different types of companies
Protect Your Safety
Legislation and standards are important because they help businesses, government agencies, and individuals to operate safely and efficiently. Hopefully, this guide has helped you understand the importance of such guidelines for efficient product management and delivery.