Economics/Business

What is compliance in business/compliance program/How to implement

In the corporate world, organizations are increasingly investing in compliance . That’s because companies understand that to remain in the market it is necessary to align the organization’s culture and values ​​with the ethical interests of society. compliance in business

In a country like Brazil, where corruption is less and less tolerated by the population, when it comes to choosing a company, both to work and to be a consumer, people tend to research and choose organizations with integrity and that are aligned with their values ​​and lifestyles.

In addition, an issue that is currently on the rise and related to compliance is the General Data Protection Law (LGPD), which requires companies to create a privacy policy and protection of personal data for the business itself, in addition to information about employees and consumers.

But do you really know what this term is about, how to implement it and how important is it to have a well-structured compliance program in your company?

If your answer is “no”, read on and stay on top of the subject!

What is compliance?

The term comes from the English verb to comply, which means to fulfill, satisfy, perform. But the most suitable translation for compliance would be compliance.

Also, when it comes to compliance within organizations, the term refers to the duty to comply with acts, rules and laws. 

Therefore, it is an internal control program that makes it possible to clarify rights and rules in order to provide greater security for those who relate to the company, especially internally, such as partners and employees. compliance in business

When did compliance come about?

The concept emerged in the United States, in the beginning of the 20th century, when the Central Bank of the United States (FED) was created, with the objective of making the financial environment more secure and stable.

Years later, in the 70s, in the same country, several private companies and even governments that were involved in corruption schemes were discovered. 

As a preventive and protective measure to prevent such cases from recurring, the Transnational Anti-Corruption Law was created, making punishments for organizations involved in corruption abroad even stricter.

What is a compliance program?

This involves creating internal rules, carrying out audits, constant inspection, campaigns to encourage denunciations of irregularities in the organizational environment and internal communication campaigns that reinforce the commitment to ethics and transparency.

But it must be borne in mind that a compliance program aims to prevent these problems from occurring, that is, it is a constant job and must be carried out even when the company has no history of infringing situations. 

How important is it to implement a compliance program in the company?

Applying compliance in companies has become increasingly important not only as a preventive practice against irregularities, but also as a great strategy to create a good reputation for the brand in the market, regardless of the size of the business. compliance in business

This is because companies that invest in a good compliance program are seen by consumers as a brand that prioritizes transparency in its relations with employees and its public, promoting greater credibility and a good reputation in society.

In addition, compliance increases employee motivation and productivity. This is because the compliance program reinforces the professionals’ alignment with the company’s culture, that is, they will feel like the right professional in the right place, offering their best performance by sharing the same values ​​and goals. 

How to implement a compliance program in the company?

There are some fundamental steps to implementing a compliance program. Even though it is an internal regulation, the program must be based on norms created by the government, whether in the form of specific laws, such as fiscal and environmental, or the Anti-Corruption Law.

So, check out the main steps to creating a good compliance program now!

Do a risk analysis

At this first moment, it is necessary to form a committee with the team’s own employees or, depending on the size of the company, hire a specialized consultancy to assess the conduct risks to which the company may be exposed.

This data collection must contain anything from misconduct that may occur on the part of employees, in relations with the market in which they operate and even with the legislation.

Define an action plan

After analyzing the potential risks, the next step is to develop strategies and actions to prevent these misconduct from occurring and what punishments will be applied in any unethical situations. compliance in business

But for the compliance program to be understood by everyone, it must be very detailed, with well-defined rules and contain simple language.

dissemination of rules

Here, the intention is to create a manual where all company employees, regardless of hierarchy, must have access to understand the rules and behaviors that should or should not be followed.

Establish an inspection system

Currently, companies can count on the help of technological tools that allow them to collect, analyze and monitor all types of information that could pose risks that threaten the company’s image in the market.

In addition, it is essential to create confidential communication channels so that employees and consumers can report conduct that is not in line with the company’s culture and, thus, feel protected with confidentiality.

Empower employees

More than just publicizing it, it is important to train employees by disseminating knowledge to take increasingly ethical attitudes.

It is worth reinforcing this information through a short course, which can be online or in group dynamics and lectures, teaching about the rules and conduct to be followed, for example.

constantly monitor

After so much work to implement the compliance program, it is necessary to constantly monitor it, managing risks . compliance in business

That’s because compliance is an ongoing job and needs to be changed according to the market, laws and society’s guidelines.

In addition, it is always necessary to be aware of complaints that may occur in the communication channels and be able to clarify doubts and identify the best improvement actions.

What is the role of HR in implementing compliance?

The HR can ensure that the company’s compliance program to be followed at the time of recruitment and selection.

Either through the analysis of the behavioral profile or other analysis strategies, such as the integrity test , in which, through a questionnaire, based on psychological studies, it is possible to understand the moral behavior of candidates in a selection process.

Furthermore, HR can use a set of good practices, called ESG , which are nothing more than pillars that aim to ensure that the company practices transparent management , with good practices for valuing human capital, in addition to a good relationship with the environment and anti-corruption laws.

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