The Anglo-Saxon term compliance encompasses adherence to laws, ordinances and regulation as well as your company’s own regulations. However, compliance is now also shaped quite significantly by the expectations of your company’s ecosystem, so social responsibility and elements of sustainability should be included in the set of regulations.
The objective of compliance is to ensure that your company behaves in accordance with the rules. This avoids liability risks for the executive bodies, for the management and, if applicable, for the supervisory board. Legislation has developed a comprehensive set of rules which, on the one hand, set out the due diligence and loyalty obligations of the ordinary business manager and, on the other hand, assign clear tasks in the management of the company.
The requirements for acting in accordance with the rules predominantly affect the management – in some cases with enormous liability risks.
At the same time, compliance also aims to protect your company from employee misconduct. From violations of data protection regulations to fraud and corruption – the potential threat is diverse and, in many companies, much more real than one would like to imagine.
The scope of relevant regulations that your company must comply with is always industry specific. However, compliance does not focus exclusively on adherence to legal regulations but must be embedded in the overall picture of your company and thus includes the values for which your company stands. Compliance requires a proactive approach from your company’s management.