COMPLIANCE AUTOMATION
Companies cannot afford to overlook their compliance obligations. The potential for major legal disputes, criminal charges, financial penalties and reputational damage arising from a failure to meet legal and regulatory duties can be significant.
In recent years, large fines have been levied against companies found to have breached their compliance requirements – for example, JPMorgan was fined $200m in 2021, Marriott $124m in 2019, Equifax $575m in 2017 and Uber $150m in 2016.
Compliance involves actionable processes which encompass the duties and responsibilities of a company to its employees, its stakeholders and society at large. Areas of focus typically include such things as employee behaviour, workplace health and safety, data management, environmental, social and governance (ESG) issues, and product standards, among others.
But companies can also go above and beyond their basic obligations. Rather than viewing compliance as a box-ticking exercise, it may be considered as a code of conduct or ethical compass to help guide employees as they carry out their daily tasks.
With expectations and challenges increasing for all organisations, investing in tools, programmes, policies and procedures to assist with compliance is vital.
Building a robust corporate compliance programme is key. Compliance programmes should be as simple and straightforward as possible, with a clear set of policies and procedures defining the framework. Also important are the buy-in of senior leadership, appointing a chief compliance officer (CCO), formal training and education for employees, continual monitoring and auditing of compliance efforts, and corrective action whenever any non-compliance is identified.
Apr-Jun 2024 Issue
Richard Summerfield