According to the Generally Accepted Compliance Practice Framework – Principles, Standards and Guidelines from the Compliance Institute Southern Africa, it’s important for companies to promote an appropriate compliance culture and encourage desired ethical behaviour.
What is a compliance culture?
It’s an ethos in your organisation that management sets to ensure everyone works towards compliance and it should form an unalterable part of your existing corporate culture. The culture is what all employees live up to and reflects what managers strive toward.
Ideally, it should be a way of life in your company. Anyone can make the decision to be compliant and encourage or demand that others do likewise. It’s beneficial to instil this culture as it sets out expectations for your employees, to do the right thing—not the fast thing, the most profitable thing or the thing that makes them look good. As such, employees are motivated to behave ethically and strive towards your compliance goals.
This duty is not limited to the compliance department alone as some compliance myths portray. Top management is ultimately responsible for the compliance culture, but the head of compliance and the compliance function has the official responsibility to ensure the promotion of this culture.
The compliance head should strive for a culture that inspires recognition of the value of compliance as part of daily business activities.
Seven standards to implement in your organisation to establish a culture of compliance
Certain minimum standards are necessary to establish an appropriate culture to promote ethical behaviour. A culture of acknowledging the value of compliance risk identification,assessment, management, monitoring and reporting in its daily activities depends upon the following:
Having the appropriate compliance culture will reduce compliance risks. According to the Compliance Institute Southern Africa, regulators may well consider the culture of your organisation when assessing the regulatory risks. Therefore, the compliance officers must support top management in ensuring your organisational values are enforced daily.
Build your knowledge of compliance, and share in the insights of the industry’s leading minds
Attend the Compliance Institute Southern Africa’s 18th Annual Conference, from 16-17 August 2017 at The Indaba Hotel, Spa and Conference Centre, Johannesburg and gain critical insights about best practice for fostering a positive culture of compliance in your company.
This event is the only professional platform for compliance officers throughout Africa. Come and understand the importance of compliance in Africa, as well as the challenges and opportunities for the profession. Register today and play your part in helping to shape the future of Compliance in Africa.
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