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August 8th, 2018

Compliance: Everyone´s role

Everyone´s role

It is the role of everybody, leaders and employees, to spread the compliance importance in all daily activities.

Compliance: Everyone´s role

It is the role of everybody within the organization, leaders and employees, to spread the compliance importance in all daily activities.  Thus, it is more than a speech.  Everyone must have an active and exemplary role becoming CI Ambassadors.
This format allows that all involved, independent of their role in the organization, think  about compliance in an organic way observing structural risks associated to their work area, questioning the existence of policies regarding i.e.  purchasing policies, operations and manufacturing disciplines, bids, interaction with public and governmental agents, approval of expenses, and other more specific examples.  With this behavior, an action plan can be created  targeting the mitigation of deviations as well as the implementation of  preventive agenda regarding procedural improvements within its value chain.
To obtain good results, the constant monitoring of compliance procedures becomes one of the basic points of this methodology’s success.
It is important to plan formal meetings, discussion tables, and suitable training that stimulate open dialogue regarding necessary procedures and structural improvements.  One must think in opportunities that might come up since the effective creation and implementation of CI, until establishment of organizational strategies.
If CI is already existent in the company through Codes of Business Conduct, it is expected that these guidelines enhance the consolidation of the Compliance Manual that will be the formal and written tool that aligns values and principles according to Corporate Management’s policies.  Here we refer to internal procedures (operational, financial, commercial, logistics, customs, policies for expense and internal controls authorization, HR policies, Social Responsibility, among others).  It will become the backbone of the organization.
Today global market and well-recognized companies require strengthening and adoption of solid ethic principles that assure licit practices and discipline eventual behavior deviations.  It is mandatory to combat illicit practices but not limited to corruption acts, tax evasion, deviation of discriminatory practices, financial integrity, disrespect to legislations of any nature that might affect positioning and posture expected by stockholders and investors, among other topics that can generate responsibility and penalty to companies.
Think about important questions for your organization:
  • How to reduce uncertainties of your business’ strategy through CI in the Strategic Planning cycle.
  • How CI can help in tactic actions and align quality, cost, and competitivity in your business.
  • You can obtain better financial results and anticipate potential risks through CI’s support.
To structure Corporate Integrity – CI we need a deep analysis of the following topics:
  • How the CI is being developed in your organization
  • Which methodology and models were used to assure that the company is complying with all these requirements.
  • How the commercial information gathering and organizational data are being structuring CIinside the company.
  • Which resources are dedicated, financial if needed, for the CI ´s activities.
  • Which is the level of maturity degree of policies and procedures among theHigh Senior Management of your company.
  • Is there a risk map or risk assessment suitable to your business, and thus to define educational effortss to your employees and leaders becomingCI a competitive advantage for your company?
The ISO 19600:2014, that refers to Compliance Management System, can help your team and your company in detailing methodologies that support Compliance structuring as a business tool and specially, help in the elaboration of risk mapping and in control management of your organization.
.Our next article will be dedicated to describe the Risk Assessment methodology for the Compliance Area and will help in clarifying potential risks in general.  Dedicate your time learn moreabout this topic and enhance Corporate Integrity – CI.
Compliance is more than the basis of a necessary organizational culture.  It is expected Zero tolerance for Complaince deviations.More than  question of time for your company to be impacted definitely by requests like these  – legally or through any of your client’s policy or from a business’ partnership demand.