Well managed compliance protects companies from criminal offences, breaches of rules, unethical behaviour and the financial losses and reputational damage that come with them. But even the most sophisticated compliance organisation can only take effect if the communication is right. With transparent information and a trusting exchange, communication builds the bridge between the rulebook and acceptance within the company. Only when everyone is informed about the rules, obligations, codes of conduct and responsibilities, when everyone can follow the rules and supports the goals behind them, can compliance management be successful.
The right communication concept
Compliance communication addresses every employee. For it to work effectively and purposefully, how the topics are carried into the workforce is decisive. Compliance can only bear fruit in a company when the leadership level sets a good example in line with the principle of tone from the top and lives the compliance principles in an exemplary and credible way. The clear aim of compliance communication is to create the greatest possible transparency, a high level of acceptance for shared values and an awareness of possible risks. The thematic priorities of compliance are individual and wide ranging, depending on the company and the industry. They range from how to handle gifts from customers through secure data protection to defined internal rules. To inform all employees about the relevant compliance rules and raise their awareness of compliance topics, the communication is built on sound methodology with the right mindset and the right setting for conversation. Compliance management ensures that all relevant rules are clearly formulated and can be implemented in legally sound, agile working processes. Communication ensures that everyone in the company keeps to the rules and requirements, that broad acceptance is created and that everyone in the team acts in line with the business goals.
Between rules and trust: communicating compliance in the team
Internal communication means that all employees know what they may and may not do, which internal rules exist and which forms of behaviour the company values. Very important here: motivating the team to follow the rules in order to act in the spirit of the business goals and the culture of values. Internal compliance communication performs a balancing act between controlling employees and motivating them, between a harder and a softer tone. On the one hand it is important that people take the compliance rules seriously, accept them and know the sanctions. But if employees feel they are being regulated and monitored too strongly, they tend rather to undermine the rules. That is why trust and transparent communication are important success factors. The communication concept should aim to establish both a rule based and a trust based culture. As the word communication already implies, this is not about handing down rules in one direction, but about dialogue and shared exchange.
Reaching the goal with the right communication instruments
As an essential part of governance, communication conveys the company's guiding principles and guidelines to its audiences through various tools and channels. To reach people at every level, it is important that the different working situations are taken into account. Compliance requirements can only be lived if they can be implemented well in each person's daily work. Compliance communication can take place through various channels, such as brochures, newsletters, podcasts or the intranet. It is a mandatory element for management to seek direct personal exchange with employees. That builds acceptance and understanding of the guidelines, because it makes it possible to discuss and illustrate the connections in the respective working situations. This can take place through advisory conversations, appraisal meetings and workshops. So that employees can also raise questions directly, it is important that they know the relevant contacts and are given the feeling that their concerns will be handled in confidence. For concrete reports of wrongdoing, employees should be able to use the internal anonymised whistleblower system that the EU Whistleblower Directive requires for every company with 50 employees or more.
Success factors in compliance communication
- The right strategy: developing a communication concept and selecting the communication channels.
- Trust and role model function: a trust based leadership culture is essential for compliance to work in the company. In other words, those responsible for compliance live compliance and the associated company values themselves.
- Transparent communication: it is important that the rules are presented in a practical, vivid way, guiding rather than confusing. It is also important that the intention behind the rules is made clear. Employees have to understand and be able to follow why they may or may not do something. That way the compliance requirements meet with understanding and acceptance.
- Practical relevance: it has to be ensured that the compliance rules and company values are in harmony with daily operations.
- Continuity: the significance of the compliance measures with their laws, rules and individual behavioural norms is ideally repeated continuously through various channels and, where necessary, extended and updated. That is the only way a lasting compliance culture can emerge.
THE MAK'ED TEAM supports mid sized companies in developing and implementing compliance management and the right communication strategy.
More information on compliance, whistleblowing and organising compliance can be found here.
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