When we hear the word “compliance” the first thing that comes to our minds are set of rules and regulations that one needs to conform to. In the corporate world, every business has certain compliances put in place wherein the employees need to obey and follow.
Need for Compliance for a Business
The main aim of any organization is to main its credibility in the eyes of their customers or clients. Having an effective compliance program in place ensures that your business can be trusted. It shows your commitment of doing the business in an ethical way.
Compliance can be categorized into regulatory compliance and internal compliance. No organization wants to get on the bad side of the law. This is the reason why compliances are put in place and the company ensures that all their staff adheres to these in order to avoid litigations in future.
When proper compliance standards are in place it can help drive change and bring about innovation in the organization. It can also help prevent disputes and misunderstandings in the organization.
Regulatory V/s Internal Compliance
Many people often get confused between regulatory and internal compliance. Regulatory compliance refers to compliance set up by external legislative bodies and come with marks such as FCC or CE on products.
When people look for these marks on the products they purchase, they feel a sense of security that the product is genuine and they are purchasing these from reliable sources. Violation of these laws can lead to severe punishment including penalties or discontinuation of the product from the market.
Internal compliance, on the other hand refers to set of rules and regulations put forth by the organization to ensure that they employees are safe and secured. This can also include recording of calls for quality purposes or customer information for risk mitigation.
Many companies are quite strict with their compliance policies. Some of the products or services that fall into the compliance list include:
- Discrimination in any form
- Sexual harassment
- Wage discrimination
- Issuing of safety signs in hazardous workplace areas
- Compliance in regard to tax laws
- Compliance in regard to advertising laws
- Protection of trade secrets
- Food safety laws
- Discrimination with the differently abled
Setting up a compliance policy in your organization is not enough. One of the most effective ways to ensure that compliance is followed in the organization is to train the employees and make sure that they understand basis.