Question

n your research, you should have come accross the term "compliance" as it pertains to business. The Ethics Resource Center has lots of information on that topic. Plus if you use the library, you will find articles on that topic. I would like a three page paper plus references on what compliance and ethics means to you as a future business leader. Assume that you are a CFO or a COO of an organization and are responsible to the Board of Directors for compliance. So what does that mean, what will you do, and how will you do it?

Answer 1

In general Compliance refer to abiding with the set of laws, regulations , standards that are applicable on the business organisation. Moreover Compliance refer to orgainsation's taking all the necessary steps & efforts to comply with relevant laws & regulations in achieving organisational goal. Such regulatory compliances vary with the type of the industry & the place where the business operates. If these regukations are not followed properly & afoul is done then it can lead to various losses in terms of fines, penalty, reputation. In order to avoid such such consequential impacts , Organisations are strictly following the harmonised set of compliance controls throughout an organisation.

Business ethics on the other hand refer to the set of moral values , principles , norms , a frame of practices & policies that governs the behavioral aspects of the individuals in the business orgainsation. Thus it is directly related to the conduct of individual & the entire organisation.

The importance of Compliance throughout the organisation comes majorly from a CEO. Thus in dealing with the compliance & ethics Top Decison maker namley a CEO has a very prominent role to play. Most of the companies have Compliance committee or a Department of Compliance & ethics which brings to the CEO the compliance information, but Since they are subordinate to the CEO there recommandation , suggestions may be disregarded. Hence the role of CEO is to be due deligent in his approach & not be negligent with respect to his duties.

Promotion of Ethics & compliance throughout the organisation effectively can be achieved by networking with the peers of the other companies. Even recruting an ethics & compliance officer of another Company might also reap fruitful results.

Conducting a outside review by an independent authority can help a CEO to get a clear picture of the organisations Compliance & ethics program. Given the recommandations , CEO can work on minimising the weaknesses & improvising more on the strength of the program.

let the incentives & rewards of the personnel of the organisation be directly related to there effectiveness with respect to following ethical & ccompliance practices. This will encourage them to work for it more efficiently & reap best results.

CEO behaviour clearly tells the employees what counts, therefore there should be an open & continuos communication of values , principles etc on the part of CEO using various platforms & distribution systems which helps an organisation to establish a core values & principles.

In the compliance program CEO needs to be Model. He should take the training first & conduct the safety walk through. Moreover he must assign the responsibilties & duties with respect to the code of conduct roleout & training to the respective field line managers. CEO should attend the Society of Corporate Compliance & Ethics (SCCE) program (The Society of Corporate Compliance & Ethics (SCCE) helps an organisation to adhere with all the respective legal & ethical aspects.