Regulatory bodies impact businesses in several ways:
1. Compliance Costs: Businesses must invest in compliance programs, which can be costly but necessary to avoid penalties and legal issues. 2. Innovation: Regulations can either foster innovation by setting standards or hinder it by imposing restrictions. 3. Reputation: Adherence to regulations can enhance a company's reputation, while non-compliance can damage it. 4. Operational Changes: Businesses may need to alter their operations to meet regulatory requirements, which can affect efficiency and profitability.