Select Page

Encouraging corporate compliance involves more than just setting up a list of rules that you expect your employees to obey. There’s a process involved that starts with showing your employees that you take corporate compliance seriously. You’ll need to create a system for gaining the cooperation of those in upper management and throughout your corporate infrastructure. Even after you lead by example in this manner, the following steps may be necessary in encouraging all of your employees to follow suit.

Implement a Code of Ethics

Your business should also follow a code of ethics that is made clear to everyone in the organization. From the very top, everyone in the organization should abide by this code and accept it as integral to their business dealings. The code of ethics you create for your business must encourage compliance with laws as well as establishing moral guidelines.

Keep the Lines of Communication Open

There should be a system of two-way communication between you and your employees to ensure the code of ethics is followed consistently. Accessible communication will make it easier for your employees to report violations of your corporate policies. Additionally, periodic reviews of your employees’ compliance will help you root out problems before they spread.

Compliance Training is Essential

Everyone should receive regular compliance training, and the training should be customized to the positions of the employees. For example, your own internal compliance officers should receive the most comprehensive training to ensure they can recognize noncompliance wherever it may exist. Employees who regularly deal with third parties should receive training that focuses on discouraging bribery and corruption.

Deter Future Violations

Beyond raising awareness and increasing training, your corporation should implement a system for ensuring compliance. This should include monitoring corporate level transactions, such as mergers or trade deals, so unethical activity can be identified early. If you create a system for identifying and stopping incidences of noncompliance, you may be able to create an effective deterrent that will stop most violations.

Once you have a system in place for ensuring corporate compliance, it’s necessary to review it on a regular basis. Just as you evaluate your employees for compliance, you should be reviewing your enforcement system for accuracy. Your corporate compliance rates will only be as good as your ability to enforce your corporate policies.