How is your company’s compliance? The term Corporate Compliance it means complying with the law. In other words, a system of tools and forms that help in the compliance of an organization, improving ethics and transparency in all its processes.
When a company follows a corporate protection system, it is able to adapt its activities to local and international laws. In this way, labor compliance allows you to mitigate risks related to the management of documents, operations and revenues.
How about knowing 5 tools that help your company in compliance? THE Feedz, in a partnership with HR Consultants UKy style=”font-weight: 400;”>, prepared this post to clear up your doubts on the subject. Follow us!
What is compliance?
The word “Compliance”, which originates from the English verb -to comply, means to comply, obey, agree. But what does this mean for business? Comply with laws and regulations, both from the government and from a certain type of market.
We have accompanied in our country the high level of corruption in several market segments. Companies, workers and entrepreneurs whose image is damaged due to several factors: disrespect for legislation, poorly managed operations, greed and breaches in security systems.
In view of this scenario, it has been increasingly important that all types of businesses adopt internal control and safety measures.
Therefore, we can say that corporate compliance is not only strategic, but fundamental! Being in compliance means that there is transparency in the company and its employees operate within the labor laws.
Adopting tools that help with compliance generates several benefits the companies:
- increased efficiency (reduction of fraud and embezzlement);
- competitive advantage (the company starts to be seen in a more positive way by the public and by the market, which is more and more strict);
- credibility with investors;
- solid and sustainable growth.
Every company, whatever its size or area of operation, is subject to several legal obligations (legal and accounting).
Consequently, their leaders need to be mindful of the issue of productivity and profitability. It’s needed pay attention also to external and internal standards, in order to ensure that employees have an ethical stance.
In the next topic, we will talk more specifically about the main functions of compliance in companies!
The functions of Corporate Compliance
The company that seeks to consolidate itself in the market must position itself with integrity. For this, it is necessary to analyze whether the strategies and actions are in accordance with the law.
Now that you know what compliance is, check out the main functions of the sector or professional within the company:
- analyze operational risks;
- examine and prevent fraud;
- conduct periodic audits;
- create manuals of conduct;
- monitor data security;
- promote these rules within the organizational culture.
The compliance officer acts as a supervisor, checking processes and also serving as a kind of consultant. He is the one who will keep an eye on any kind of carelessness, which goes far beyond financial issues: social, health, environmental, labor, etc. carelessness.
What tools help with compliance?
According to a search 2016 of PwC, about 54% of participating UK residents companies reported financial losses related to fraud. This is a worrying fact, isn’t it?
So, what to do to prevent this from happening in your business?
First, compliance involves drawing up a code of ethical conduct and clear policies. They need to be communicated to all professionals in the company, without exception!
It is important to remember that leadership The organization needs to corroborate this code, that is, inspire its employees.
In this process, it is also important to provide communication channels to improve internal dialogue. But beware: it needs to be a channel that optimizes operations and contact between people, not the other way around. It is useless to offer multiple means of communication if the company does not respond with agility.
These means of communication should include channels for reporting (such as internal ombudsman, so that fraud and other types of problems are reported.
To help you, we show you now 5 tools that help your company’s compliance. Check out each one!
1. Risk assessment
This process consists of the identification of risks that a company presents at a given moment. Risks such as fraud, corruption, use and privacy of data, money laundering, conflicts of interest, relationships with competitors, etc.
The analysis involves the classification of these risks, considering what are the impacts on the organization and the probability of occurrence. In addition, an action proposal is made to resolve and monitor each case.
Basically, the risk analysis begins with research on the company’s policies and the procedures necessary for each one to be complied with. Then, compliance professionals conduct interviews with certain people in the organization, whose role is decisive in this matter. Finally, a matrix is elaborated probability x impact.
2. Quality control
You may have noticed the change in consumer profile in the last years. He is more attentive and more demanding about the quality of products and services.
In view of this, it is essential that companies have focus on delivering quality products and servicesin order to really meet consumer expectations. But they must also comply with safety standards and rules.
Therefore, having a quality control adds competitiveness to your business.
3. Contingency mapping
Contingencies are all those situations in which the company is exposed to risks, whether due to failure to pay attention or negligence in a particular procedure. It can be said that this is something very common in the daily life of companies, but it needs to be observed!
The mapping consists of periodic performance of internal audits, that can identify all these risks and, thus, anticipate them.
But what kind of contingency are we talking about?
Financial issues, for example. Tax liabilities that can generate fines and impediments if not resolved.
Contingency mapping involves: needs, possible risks (equipment breakdown, fire, hacker attack etc.) and primary and secondary action plan.
In the main action plan, a definitive solution to the problem is elaborated, which completely eliminates the risk. An example is the installation of a generator to prevent power outages.
At the secondary level, a measure is designed to reduce the severity and likelihood of risks. Another example is tools that make it difficult for hackers to invade, such as firewalls or biometrics.
4. Occupational safety assessment
It is no surprise that working in pleasant environments positively impacts employee performance, motivation and engagement. In addition, it minimizes risks and shows that the company is concerned with people’s well-being!
For this reason, the job security assessment must also be constant. The compliance professional must avoid accidents and the spread of diseases in the workplace.
Pay attention to employee complaints and resolve them as soon as possible, so that the problem does not get worse. Issues such as lack of water, lack of raw materials, removal of key people within the organization, broken appliances or office supplies, etc.
5. Verification of engagement and performance
Did you complete all the previous steps, but still notice a drop in staff performance? So there is something that has not yet been resolved!
Keeping a company running in an organized manner is difficult and laborious. But it is possible if you use the right tools!
In those moments, invest in corporate management software. OKR, for example, is a complete management tool that helps you to create and monitor goals. An integrated solution for the HR professional.
THE OKR allows you to have collaborators working together towards a single goal. Can monitor each goal and performance in real time, both individually and as a team. This way, you make sure that everyone is moving in the same direction and communicating clearly.
Compliance is not just about standards and risks, but about deeply analyze your company in all areas!
How does this impact companies?
One of the great assets that a company can have is its reputation. Without it, you will hardly be able to get very far.
Whatever your area of expertise, one of the secrets to success is you comply with market rules. Commit to your customers. Act ethically.
Implementing tools that help with compliance are alternatives to materialize all of this. As we have already seen, the benefits are numerous: attracting investments, sustainable growth, increased employee engagement, etc.
Thus, the organization that operates within the law does not only benefit those involved, but the country’s economy itself.
As we have seen, there are 5 basic ways that help your company in compliance. If you haven’t paid attention to it yet, meet with leaders and managers. Do not leave the security and transparency of your company for later!
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