Introduction

The main objective behind implementation of a compliance program is to keep a record of whether the organizations act responsibly and comply with the laws and regulations. Thus, creating effective compliance programs for a better business culture is important.

How to create effective and agile compliance programs in order to make the business culture better?

Establishing Policies and procedures

It is essential for organizations to establish internal rules & regulations, standard policies & procedures apart from the laws enforced by the government. These rules & policies should be created to eliminate the existing problems as well as to prevent any future problems. These rules & regulations should be communicated in writing, and in a clear and precise manner to the employees within the organization.

Risk Mapping

Ever organization faces internal and external risks. While external risks might be common to all the organizations across industries, internal risks are subjective and should be addressed by the board members. Such risks can be mitigated by complying with the rules and regulations.

Leadership

Quoting John Maxwell, “A leader is one who knows the way, goes the way, and shows the way”. When a leader complies with the rules and regulations, he or she illustrates the importance of such compliance through their actions, and not only words. This signifies the importance of following the rules and regulations to the employees as well. Thus, when the board members follow the rules & regulations, they should also make sure the rest of the members in the organization understand its importance abide by these rules.

Education and Training

For an effective implementation of policies, it is vital that proper communication, education and training is imparted to employees. Training programs for employees can vary from one organization to another. Topics such as unfair trade practices, sexual harassment, organizational property, labor standards and disclosure of confidential information fall under general training for all organizations.

Audit and Reporting

It is the responsibility of an organization to fact-check and scrutinize every once in a while, to make sure the laws are abided by. The employees should feel safe to come forward to the authorities to report a misconduct. Every complaint, regardless of being big or small should be addressed by the authorities. Reporting leads to corrective action in turn benefitting the organization.

Discipline

Compliance programs in the organization reflects its credibility to third parties involved directly or indirectly. It also depicts that the organization supports the idea of treating everyone equally. Regardless of their position in the organization, a person displaying any sort of improper behavior should be penalized. The organization should reward the whistle blowers who highlight the misconducts, as it might motivate others to do so.

Conclusion

Implementation of such agile and effective compliance policies will help the organization in achieving business and compliance goal. This will further help the board members in creating an amiable business culture in the organization.