Failure to comply with laws and regulations results in some pretty hefty costs to your company. Some people question whether or not investing in an ethics and compliance program is worth it.

With the newest round of amendments to the US Federal Sentencing Guidelines, the recent passing of Ontario's Bill 168, and other legislation, companies are more liable than ever before. The costs of staying on top of your company's ethics and compliance program are much less than the growing costs of non-compliance, as seen with the increasing number of record-breaking fines that have been handed out recently.

David Griffin of HR Proactive discusses the importance of being proactive when it comes to ethics and compliance. Here are just 10 of the many costs your company will save by taking a proactive approach to ethics and compliance, as outlined in Mr.Griffin's presentation.

1. Boost Your Reputation

Ethics and compliance have become part of the purchase decision process for many consumers. When news breaks about an investigation, lawsuit, or criminal charges, you can bet that the company's name is going to be raked through the mud. Many companies rely on the power of their brand.

When consumers have negative associations to particular brand names, they will go elsewhere to get what they need. Your reputation is probably the hardest thing to gain back after an ethics and compliance violation has been uncovered.

2. Increase Productivity

Ethical misconduct can be distracting and difficult for employees to deal with. When misconduct is present in the workplace, employees find themselves focusing on the misconduct as opposed to their work.

When ethics and compliance are viewed as important in the workplace, employees can focus on their job and perform at their best.

3. Reduce the Risk of Fines and Legal Fees

If your company is found guilty of violating the law, you can expect that fines and legal fees are only going to continue to increase in the coming years.

In the US, companies can gain credit and reduced fines if they cooperate and can prove that an effective ethics and compliance program is in place within their organization. This is a welcome change for many companies that have robust ethics and compliance programs in place but lands in hot water because of the actions of a single or group of employees who made poor choices.

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4. Decrease Employee Turnover

People don't want to work for companies that have unethical reputations.

The Reliable Plant article, "Survey: Ethics Impact Employment and Productivity," states that findings from a study by LRN shows that one-third of employed persons left a job because they disagreed with a company's ethics. Employee turnover costs can really hurt a company, as the cost of training new employees adds up quickly.

5. Lower Your Liability

Failure to comply with industry laws and regulations poses a number of liability risks for a company, and each one comes with a price tag.

Negligent manufacturing results in product recalls. Unsafe workplaces result in injuries and lawsuits. Ethics and compliance programs help decrease liability on a number of levels, as these programs help mitigate risks.

6. Improve Your Corporate Culture

Ethics and compliance programs contribute significantly to the success of achieving a desired corporate culture.

Ethics and compliance programs help maintain consistency in the workplace, holding everyone to the same level of accountability. Many companies can use their strong ethical corporate culture to their advantage, as it's easier to attract highly skilled employees and have your pick of the crop when it comes to partnering with suppliers and other companies (more about that below).

7. Insurance

It's actually been proven that ethical, compliant companies are offered lower insurance rates than companies that are not. In a document titled "New Protections against Violence and Harassment in the Workplace and New Challenges for Employers," from Nelligan O'Brien Payne:

“New workplace health and safety legislation has proven to: improve employee morale; decrease lost time; reduce workplace injuries and illnesses; and lower insurance costs.”

8. Lost Work/ Absenteeism

A high level of employee absenteeism doesn’t look good on any company- and it also isn't good for the bottom line.  Employees may miss work due to the stress they feel when working in an unethical environment.

When an employee is absent from work for days at a time, it results in lost work, decreased productivity and an increase in costs.

9. Partnerships

When you are selecting suppliers, vendors and other supply chain members, you're probably pretty particular about who you are willing to work with. The same goes for other companies considering whether or not they want to partner with your company.

If you don't have certain policies and programs in place, other businesses that are committed to ethics and compliance won't want to work with you. It's too risky for businesses to collaborate or receive supplies from companies that don't have the same view on ethics and compliance.

RELATED: How to Use Case Management Software for Compliance Automation

10. Corrective Action

The costs of ethics and compliance violations aren't getting any smaller. In fact, as enforcement strengthens, the consequences seem to be harsher than before.

If your company is fined for violating laws such as the FCPA in the US, Bill 168 in Canada, US Federal Sentencing Guidelines, SOX and any other piece of legislation, you'll likely end up developing an ethics and compliance program to ensure the same mistake doesn't happen again. So why don't you just implement one today to avoid the added costs?