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Compliance

 

The term “compliance” refers to the observance of rules, guidelines and laws and follows the objective of promoting a culture of ethics. In many companies it is the core of a strong risk management programme to minimise long-term and sustainable risks and thus protect companies. In companies, the term usually refers to the applicable internal rules, i.e. a code of conduct and its associated guidelines.

 

A so-called Compliance department or the Compliance Officer is usually responsible for the development, implementation, case management and monitoring of the measures. A general  Code of Conduct should be worked on with top-level management and should promote a compliance culture in the long term. Furthermore, not only should compliance education and training be provided, but performance reviews should be structured to include an assessment of an employee's compliance and results, and reflect how those results were achieved. This is the only way to ensure that employees are motivated to comply with and live by the applicable rules.

 

Depending on the size and complexity of the company, the following areas may be subject to additional analyses to minimise risks in the long term:

- Third party due diligence

- Security procedures and controls

- Creation of reports

- Creation of documents for early risk detection

- Development and implementation of guidelines and rules

Case Management: Guarantee and case management system

 

In addition, appropriate communication tools and measures should be selected to provide information on which measures and processes can be initiated following possible violations. This includes providing effective and secure reporting channels to which employees and suppliers should have access in order to report misconduct and malpractice anonymously.

 

See Haufe Group at: https://www.haufe.de/compliance/management-praxis/compliance/bedeutung-von-compliance-fuer-unternehmen_230130_474234.html (accessed on 03.06.2020).

Relevant topics

Beyond Compliance: Making Compliance Work for the Business

David Jackman | John Wiley & Sons, October 2015
ISBN: 978-1119020592

Beyond Compliance is about a necessary change in the way businesses carry out compliance, from expensive mechanical 'tick-boxing' to a much more mature, intelligent and lower cost 'judgment-based' compliance which aims to prevent problems occurring rather than treating symptoms and adds value by enhancing customer experience, reducing errors and complaints, reducing reputational damage and regulatory risk.

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Bridging the Values Gap: How Authentic Organizations Bring Values to Life

Ellen R. Auster | Mcgraw-Hill Education Ltd., August 2015
ISBN: 978-1609949563

The authors show how companies can believably approach employees with its values via discussions and conversations, and thereby provide a basis for identification and commitment.

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Global Overview of Anti-Bribery Laws

Baker & McKenzie | Aranzadi, May 2015
ISBN: 978-8490984529

The handbook by the global law company Baker & McKenzie provides an up-to-date overview of anti-corruption legislation in 47 countries worldwide. It illustrates to what extent compliance programmes are a component of legal guidelines, and whether their presence can be considered a mitigating circumstance.

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