Compliance is a lever that can be used to prevent violations of external and internal rules in the company from the outset. As a result of developments in the compliance culture, there is a growing realization that something has to be done in one’s economic interest.
Ethical requirements also play a role
However, compliance is much more than the obligation to ensure that all legal requirements are observed. Clients, customers, suppliers, and last but not least the public expect that the business owner also meets the growing ethical requirements. Compliance & Outsourcing Services in Delhi, therefore, shapes corporate culture.
The starting point of a compliance program is the company’s public commitment to legal compliance. Company management and executives are responsible for a role model function. They should exemplify and communicate the established principles.
The introduction of a behavioral guideline (code of conduct) has proved its worth as a basis. In addition to the company’s key values and beliefs, it describes and explains rules for responsible, ethically impeccable, and lawful action.
The focus on correct compliance is increasing
In recent years, the perception of compliance in companies has changed significantly. While not so long ago it was dismissed as “superfluous”, it has already reached medium-sized companies today.
Clarifying the question of what is hidden behind the term “compliance” is becoming increasingly important if you want to sensitize your employees or the members of your corporate association to the importance of compliance in the corporate world.
Compliance ensures that the legal regulations and internal guidelines relevant to the company are complied with.”
In recent years, the sanctions imposed by domestic authorities and abroad in connection with compliance violations have become increasingly severe. In addition, the victims of compliance violations, such as the customers of companies who have agreed to their prices with competitors, regularly assert claims for damages under civil law.
Difficult to quantify, but perceptible, the reputation of a company may suffer considerably as a result of compliance violations.
It is important to understand that
- Compliance is a natural part of your company’s business processes.
- Compliance must therefore not dominate the business process.
- compliance measures have an impact on corporate culture.
- the success of compliance ultimately depends on the sustainability of the compliance measures- this sustainability is the key to the success of your company’s compliance measures.
With the realization that the topic of compliance is neither superfluous nor just a temporary phenomenon, the realization grows that the resulting need for action must be met.
Therefore, it is important to recognize that there is no alternative for the board of directors or senior management of a company but to implement compliance in the company. This includes taking measures such as initiating a compliance risk audit to then implement a compliance management system.
If management has correctly set itself the goal of anchoring compliance in the company in the long term, then you must also work towards developing a corresponding compliance culture. This is a long-term topic that requires constant support from management.
So, why not choose Compliance & Outsourcing Services in Delhi and get the much-needed support in optimizing the compliance of your company?
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CA Aman Aggarwal
AKGVG & Associates