What Compliance Is?
Compliance consultants are a set of organization and processes ensure employees in an organization adhere by external and internal rules and regulations. It includes written values, employee handbook, its ethics policy, and complying policies for legal obligations such as corporate reporting and taxes. In large organizations, compliance already exists and compliance consultants are within the functions under the name of chief financial officer, chief executive officer, and HR head.
Why Compliance is a must?
Compliance is a must for these reasons.
- Compliance is a part of the organizations duties to its stakeholders and community. Any business, benefits from these services. On using the resources of creditors, investors, or donors, you must assure them you regulate your employees conduct and are complying abiding to the rules and regulation. It is smaller organizations that need to give thought to compliance function, as it is a must.
- Without compliance function, it is hard to build or maintain trust. The factor of trust revolves with three elements namely, a. honest communication b. repeated interactions with others c. following commitments. The difficulty with organizations is in meeting the elements of ‘a and c,’ unless they do not adhere to the rules of b that requires honest communication for interactions. Thus, there is a need for compliance consultants to make employees realize their commitments towards following the norms and rules, emphasized and adopted through the organization.
- If an organization has no compliance function in the system, it is an invitation to reputation damage. Building a reputation takes years, while losing one takes no time. Interacting with organizations having reputation calls for honest dealings. Leaders rank consistently the reputational risk and to keep out of this worry, it is a must to work in a trusted marketplace. Being trustworthy is important so that customers offer the benefit of doubt. Having a strong compliance function ensures you can take steps with confidence and measure success.
- Compliance boosts consistency. Decisions are ad hoc as it is made in a vacuum, without compliance functions. The routine is a matter of decision as it includes articulated values, conduct providing reference to decisions, ethics policies and different codes by the compliance consultants. It is the rule and should be followed by the right principles. It can be pragmatically handled by adapting the rules.
- Compliance serves as an innovation and change. Compliance serves as a robust tool. And regulated every day behavior by giving training. The conduct stems from values, modification and articulation of values that it influences organizational behavior. Values have a leverage point, and compliance concentrates on the organizations driving values.
- Compliance defines the ‘why’ in an organization. It describes how a company does, what it does, and why it does. Regardless of the industry size, it involves in communicating or acting from the inside out and completes what and why. They undergo to clear even the fuzziest things. However, everything is smooth with business on adhering to the compliance rules and regulations.
