Introduction
As an integral part of an overall internal risk management procedure, your compliance program should at a minimum:
- identify the regulatory risks affecting your company,
- determine whether or not your current practices might breach those requirements,
- formulate a risk prevention and remedy plan, and
- institute a corporate culture of compliance within your company that includes ethics training for employees.
The Wide Reach of Ethical Considerations
Although traditionally the term professional ethics conjured up concerns about medical ethics, legal ethics, and accounting practices, today the term has been expanded to encompass not only all of the financial sector, but also a broad range of everyday commercial undertakings engaged in by virtually all companies.
What Areas of Corporate Conduct Should Be Included in Your Compliance Program?
While compliance requirements for each business differ from industry to industry, and an effective compliance program for your company must be tailored to your type of industry, there are, nevertheless, certain fundamental topics that apply to most, if not all, businesses. Here are nine crucial areas to examine:
- Handling of Confidential Information
- Potential for Insider Trading Violations
- Conflicts of Interest
- Non-complying Accounting Practices
- Sarbanes-Oxley (SOX) Violations
- Financial Accounting and Records Maintenance Problems
- Use (or Misuse) of Company Property
- Handling of Client and Vendor Gifts, Favors, and Gratuities
- Proper and Timely Reporting of Ethical and Compliance Concerns
Across The Board Ethics Training
Equally important to maintaining a sound compliance monitoring and resolution program is instituting a comprehensive, mandatory, and ongoing ethics training program for all employees who are likely to encounter the above issues while carrying out their various and sundry business functionsin other words, just about everyone!
Conclusion
Developing a corporate compliance program that includes in-depth ethics training will promote honest and ethical employee conduct, increase the likelihood of compliance with applicable laws, and provide employees with clear guidelines and expectations as to what practices are acceptableand legally permissibleversus those that pose a risk of liability for the company and, therefore, must be avoided.
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
