Part of running a smooth business is making sure that the correct laws are being followed. Shortcuts and shady deals may work for awhile, but ultimately, the chances of getting caught are fairly high, and it spells trouble for the individual and the company, especially if they were running operations with the company’s knowledge. For example, reducing toxic air pollution from industrial plants could save around 5,000 lFives a year and cut down on the number of respiratory and heart disease cases annually. Most companies do try and actively reduce their toxic waste — however, if a company was to ignore the rules set in place because it was cheaper or more efficient to do so and their plan was discovered, the company would have a significant amount of legal issues to deal with. For this reason, establishing corporate compliance within a company is an important aspect of running any business.
What Is Corporate Compliance and Why Is It Important?
Corporate compliance is a program that is tasked with ensuring that your company and employees are following the laws, standards, ethical practices, and regulations that your organization must adhere to. Naturally, these standards and practices may be different between industries, but all businesses should be paying attention to the rules set in place.
Corporate compliance programs can keep commercial litigation, contract disputes, or other class actions at a minimum, as well as help keep your operational day to day running like a well oiled machine. It works proactively to keep failures from really taking root and working toward success, bigger sales, and better outreach.
For example, one thing a corporate compliance program works actively to prevent is fraud, which hurts everyone in the company. This program brings all internal and external compliances into one big code that all employees can reference.
How Can I Make My Corporate Compliance Program Effective?
First, you need to figure out what compliance needs you have within your business — and this should be ongoing, even once your program is set in place. Businesses change, and your program needs to change with it. Talk to all levels of employees at your business — from any boards that oversee it, management levels, and employees. Look at other competitors and members of your industry to see what they’ve done and what reactions have been, and start identifying risks.
You should have a clear set of objectives that you want to accomplish as well. Once you have a list of possible risks, it’s time to start a risk assessment, figure out ways to solve them, and make sure that everyone knows what their part is in carrying out the program. Everyone from the newest entry-level position up to the very top should know what their role is. Once it’s put into play, be sure you’re continually assessing the success of the program, tweaking as needed, and continuing to train and educate all levels of employees.
Why Should I Be Paying Attention to Corporate Compliance?
Paying attention can help save you a world of hurt later on down the road. Being able to assess risks and take proactive steps early to solve them means that your company is free to grow and expand and stop failures in their tracks. Enforcing this program means that your company will be able to maintain a sterling reputation, avoid penalties or fines for bad behavior, and avoid the wrong kind of publicity.
Adhering to corporate compliance helps you in the long run, so you want to be sure that your company has a strong program, and that all employees are informed and educated about it. Once the program is established however, your work isn’t done. A truly strong corporate compliance program will keep evolving and changing as the company does, covering all eventualities.