What is Corporate Compliance?
In the broadest definition, corporate compliance is the ability to lead large groups of people toward achieving certain standards of conduct. You have a body of people somehow affiliated with one enterprise (the “corporate” part) who must obey certain rules (the “compliance” part). That’s it, really. Sure, we can refine that broad idea into several more precise definitions; and we should explore what goes into those individual “corporate” and “compliance” parts because a lot goes into each one but always keep in mind the basic concept of leading people to behave in certain ways. Everything about corporate compliance can be summarized in those seven words. Now let’s deconstruct that concept into more precise components, and examine each one.
VITAL COMPONENTS OF CORPORATE COMPLIANCE
For having a successful corporate compliance program, it is essential to include all the standards and controls that ensure compliance by every employee of the company. Three vital components of corporate compliance achieve this, namely, Code of Conduct, Compliance Standards and Policies, and Compliance Procedures.
CODE OF CONDUCT
The compliance tone of a company is established by the code of conduct, which further sets the ethical principles of the business along with the general principles using which and employees and management conduct operations.COMPLIANCE STANDARDS AND POLICIES
The compliance standards and policies govern the rules and expectations for each of the key areas of corporate compliance.COMPLIANCE PROCEDURES
The compliance procedures set the day-to-day practices and requirements for the proper implementation, management, and enforcement of the compliance standards and policies.Why Pksoftech
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