The term compliance refers to the set of rules of an organization — whether in the public or private sphere — for compliance with laws, regulations and internal guidelines applicable to its sector of activity.
The purpose of compliance is to ensure that companies act ethically, transparently and in compliance with the law.
After all, what is compliance?
Compliance is the name given to the program of actions to monitor companies with regard to compliance with laws and internal policies with the aim of preventing and detecting illegal, unethical or risky practices within organizations.
In Brazil, the Anti-Corruption Law of 2013 established the bases for the creation of compliance programs in companies, as a set of internal integrity mechanisms and procedures and codes of ethical conduct.
In addition to legal issues, a compliance program also involves fiscal and tax compliance, as well as the health, safety and well-being of an organization’s employees. This includes ethical behavior and the prevention of conflicts of interest, harassment and discrimination.
In this way, compliance can be related both to external rules, such as compliance with industry regulations or compliance with federal laws, and internal — when the company defines its own policies by identifying the compliance areas relevant to its business.
compliance areas
Several areas may be involved in a compliance program, depending on the sector in which the organization operates. Among the most common themes are:
- Fight against corruption;
- Financial compliance;
- Ethics and conduct;
- Occupational health and safety;
- Data protection;
- Information security;
- Social and environmental responsibility.
With the compliance culture and its standards, companies are able to avoid legal problems, protect brand reputation and ensure the trust of stakeholders, such as customers, investors and regulatory authorities.
