There is no question that corporate compliance and ethics programs mitigate legal risk and improve the performance of a company.
These programs channel the efforts and objectives of the organization towards a common goal – doing business consistent with the corporate core values and the law. A compliance and ethics program sets the course for not just what the company does, but how it’s done – because the how matters.
A robust compliance and ethics program is essential to promote ethical and compliant conduct in the workplace. A corporate culture anchored in common core values also facilitates the resolution of difficult business decisions and nurtures an environment rooted in the core values of the business.
So what are the key takeaways when thinking about a robust corporate compliance and ethics program?
1. Mitigate the risk of violating laws and policies
Even a fleeting glance at major news headlines reveals many companies who have run afoul of laws and regulations and thus, causing major damage to their brand and reputation. No company can eliminate risk entirely, or even predict in advance what types of legal violations or non-compliance may arise. However, just as with physical security, there are proactive steps that can be taken and investments made to mitigate the likelihood of violations and their impact on the company.
A robust corporate compliance and ethics program can not only prevent violations of policy and the law, but they can also serve as a valuable shield if and when employees make poor decisions. A strong program can put a critical divider between your company and the bad decisions of a rogue employee.
2. Promote customer loyalty
A business that is grounded in its values, vision, and mission acts as a magnet for customer loyalty because customers are attracted to an organization that has a strong commitment to its core values – especially when the customers share those values.
There is no doubt that the youngest generation of consumers care deeply about business ethics. They are the ones who inquire about fair sourcing, social responsibility, fair wages, and other ethical issues. With the rise of social media, information about corporate mistakes can reach thousands of people within just minutes. Corporate compliance and ethics programs can make an enormous difference in how your business is perceived by customers.
3. Unite your team
There are so many things that divide us in our culture: gender, race, age, color, religion, the sports teams we loyally support. There may be only one thing that unites your employee population – the success of your company. By setting forth corporate core values, you provide a uniting force for your employees. When employees are focused on the core values and mission of your company, they are committed to collective success – and that’s when your team performs at its best. Without a strong and visible corporate compliance and ethics program, your employees may do what is best for themselves and not what is best for your company.
4. Conclusion and how we can help
Creating a corporate compliance and ethic program is not complicated if you begin at the beginning. However, most companies will need to “change the tires while driving” and implement a program while conducting business. Launching a program or overhauls to an existing program require careful evaluation of the needs of the business and the risks it faces, as well as the inputs of all relevant stakeholders.
Seeking the guidance of a corporate compliance and ethics professional can enable your business to develop an effective program that mitigates legal risks to your business and sets the standard for your employees.
Your choice is CLEAR. Contact us today for a free initial consultation.