Every business and industry faces risks, but cannabis is one of the riskiest businesses to operate in the U.S. and abroad. Compliance culture is necessary to follow state and federal laws, build loyalty within the staff and build a solid reputation with the public. These steps are required to operate a successful cannabis company.

1. 11/1/21, 11:57 AM Why Compliance Culture is Vital for Your Cannabis Business | John Jezzini | Cannabis Industry
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Why Compliance Culture is Vital for Your
Cannabis Business
by rjones | Oct 27, 2021 | Cannabis Industry, John Jezzini
Every business and industry faces risks, but cannabis is one of the riskiest businesses to
operate in the U.S. and abroad. Compliance culture is necessary to follow state and federal
laws, build loyalty within the staff and build a solid reputation with the public. These steps
are required to operate a successful cannabis company.
Increase Policy Compliance
Every type of business must have a strong compliance culture where the entire staff is
aware of the necessary policies and procedures that they must follow. They have to know
every risk that is associated with non-compliance. For instance, a cannabis business may
have privacy policies regarding their customers that all employees must follow to avoid
facing lawsuits.
Improve Risk Mitigation
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2. 11/1/21, 11:57 AM Why Compliance Culture is Vital for Your Cannabis Business | John Jezzini | Cannabis Industry
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Obedient employees do not take risks that jeopardize the values and integrity of the
company. Compliance culture is necessary to mitigate many risks that confront a cannabis
business every day.
Some companies have high turnout rates, while others have problems with finding
supportive media coverage. Some enterprises have disloyal employees who steal inventory
or make negative comments about the products. Every bad behavior comes with a
consequence that affects the entire company but is preventable by increasing discipline
and compliance.
Avoid Whistleblowing
Workers who don’t follow the rules put themselves and others at risk of whistleblowing.
This occurs when one employee exposes the wrongful behaviors of another.
Whistleblowing may point out one person’s wrongdoings, but it makes the entire business
lose its reputation. This unfortunate event can be avoided altogether.
Provide Incentives
Promoting compliance culture means promoting incentives that reward loyalty and
obedience. Incentives include bonuses that are given to employees to meet certain
milestones and promotions offered to the most ambitious professionals. The more
rewards they receive, the more loyal workers become and the more respectable the
business becomes.
Why Order is Important
Cannabis is not the most straightforward and most reputable substance to sell to the
public. However, the times (and perspectives) are changing on that front.
Although it’s been legalized in many states, selling this substance, whether it’s for
medicinal or recreational purposes, will always be a challenge to overcome. Some
consumers are ignorant about the benefits of taking cannabis and may worry about the
risks. That is why establishing a compliance culture is so important for every cannabis
entrepreneur.
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