Many companies in CPG and other highly regulated industries are experiencing increased regulatory scrutiny. This viewpoint discusses four best practices of industry leaders for managing changing regulations.
Over the last several years, consumer product safety crises - from peanut butter to spinach to toys - and their subsequent large-scale recalls have damaged public opinion. Heavily scrutinized and publicized in the media, these events have not only hurt consumer trust in household brands but have affected all consumer goods companies by ricochet. Incidentally, these major recalls have also created momentum for governments to act, catalyzing and accelerating regulatory scrutiny of industries across the globe. However, best-in-class consumer goods companies are not losing sleep over the likely increase of regulations promised by governments and called for by nongovernmental organizations and consumer associations alike.