COMPLIANCE: KEY TO BUSINESS REPUTATION
We are living in an era of increased regulation and renewed enforcement efforts, especially for public companies as well as private companies. Governmental regulation and enforcement are typically reactionary in nature rather than proactive. For businesses, an essential factor for success is to familiarize themselves with the laws and regulations which govern them. Compliance is, after all, directly linked to a business reputation. Often, non-compliance can have reputational, financial or audit implications for businesses.
Keep it Focused and Simple
The more complex, the more difficult it is to communicate a corporate compliance program to employees and stakeholder groups. Compliance goes hand-in-hand with governance and risk management.
Code of Conduct
A code-of-conduct is an important component of a compliance program and ethics remains the heart and soul of all corporate compliance programs. However, a comprehensive program goes further by applying the code to the specific risks of an organization and integrating measures to address those risks.
This will Help Ensuring Adherence
Benefits of Compliance:
The benefits of a strong program go well beyond regulatory and legal compliance to also include operational benefits. A well-balanced corporate compliance program will help ensure that a company’s organizational structure, people, processes and technology are working in harmony to manage risks, keep customers happy, grow the business, oversee vendors, and achieve numerous other goals.
What is a Corporate Compliance Program?
-A corporate compliance program is generally a formal program specifying an organisation’s policies, procedures, and actions within a process to help prevent and detect violations of laws and regulations.
-A more integrated approach also focuses on legal as well as internal compliance to mitigate the risks of fraud, as well as to reach strategic, operational, and financial reporting objectives.
-Think of a corporate compliance program as a magnet that brings all of a company’s compliance efforts together.
-Compliance goes hand-in-hand with GOVERNANCE and RISK MANAGEMENT.
Ten aspects to help ensure effectiveness in corporate compliance program:
There are certainly many ingredients and aspects to an effective corporate compliance program. Here are ten aspects that go into the making of an effective corporate compliance program:
- Understanding the Scope
- Define Objectives
- Have to gather internal and external Intelligence
- Conduct a Gap & Risk Assessment
- Align Controls
- Assess On-Going Compliance
- Verify Buy-In and Understand-ability
- Test Cultural Support
- Measure Results and Report to Board
- Train, Educate and Communicate
A lapse in anyone of the above ten areas could spell doom for your compliance efforts. One shouldn’t think of compliance as simply a regulatory necessity, but rather as a means in protecting your number one asset – your company’s reputation.
Everyone needs to know their roles
Everyone needs to understand the “why” and “how” of the compliance program. Controls need to be clearly communicated, ideally with a feedback loop so control owners can voice their insights and concerns.
Build monitoring, internal audit and special reviews into the compliance program to help ensure that controls are operating effectively.
One will have to deliver periodic targeted training and share compliance information with the business units head & all stakeholder groups.
Effective compliance functions:
** Identify all regulatory and internal compliance needs This should be performed periodically as regulatory landscapes and operational environments are typically changing.
**Tap into the collective intelligence of company by soliciting thoughts from the, management and employees. Also understand industry developments and competitor reactions to corporate compliance.
** Define objectives from an enterprise and business unit standpoints. This should be a significant part of the periodic strategic planning process. (things to accomplish in order to achieve a goal)
**Identify risks, probabilities, and the significance in terms of both qualitative and quantitative measures. Consider scenarios from a cause-and-effect standpoint.
**Policies, procedures, and actions within a process, should be in place to address the risks to achieve objectives.
COMPLIANCE IS INDEED A KEY TO BUSINESS SUCCESS.
A Pharma professional with width and depth of experience spanning 38 years across key functions in the pharma space (start-up/Large Indian Co/ Growing/MNC) having Excellent track record of providing leadership with Core competence in Sales, Business Development/Marketing, Distribution/Logistic at All India Level & currently heading Compliance Department at Jagdale Industries Pvt Ltd. Also Mentoring in Pharmaceutical Consulting & Market research.
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