Facing hyper-regulation

The number of new laws is increasing exponentially around the globe, regardless of region or ideology. This is because governments respond to periods of deep social and economic transformation – like the one we are currently experiencing – with new rules, laws, decrees, and regulations. The way governments managed the COVID-19 pandemic is a good example, with hundreds of new laws enacted in many countries.

This hyper-regulation comes at a very high cost for companies. Some markets have become a Sudoku puzzle of national, regional, and local rules, some of which change every month. This makes an organization’s day-to-day work increasingly complex, which can reduce their ability to invest in themselves.

LLYC solutions

  • Tracking systems. The best way to reduce uncertainty is to understand the political scenario, how it works, and its key players, and tracking systems can both highlight any new regulations in a given country and monitor its political state of affairs as a whole.
  • Partnerships. Companies cannot face this legislative tsunami alone, even if they are champions in their own sectors. Partnerships are key to strengthening the private sector’s voice before legislators.
  • Quality solutions. Although governments are ultimately responsible for enacting new rules and regulations, businesses can play a more active role in this process by proposing high-quality solutions to legislators.
  • Corporate activism strategies. A company’s purpose must not only be part of its discourse, but also appear in campaigns and activations backed by the entire organization. Defending or promoting social causes in the political or legislative sphere can improve a business’ institutional profile and differentiate it from competitors.
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