Corporate Compliance Program
Because of the increasing importance of corporate governance and effective charge and multiplication of legal issues, corporations must formulate and implement corporate compliance programs to conform to governmental regulations and comply with relevant legal and fiscal obligations laid out by mandate. The Corporate Compliance Plan builds on the recognized principles which underlie the activity of the company and provide information and assistance pertaining to questions relating to compliance. Legal compliance refers to the legal and ethical conduct of the corporation's business, both corporate officers and employees must comply with all applicable laws and guidelines of the corporation included in the Corporate Compliance policy which has been laid as the foundation for corporate governance.
Corporate Compliance Policy
Businesses desire to excel against their competitors by conduct involving innovation, commitment to quality, professionalism and fairness. The implementation of a systematic Corporate Compliance Policy demonstrates to all stakeholders (media, investors, competitors, authorities and business partners) that compliance is firmly rooted in the enterprise's culture of corporate governance. The purpose of the corporate compliance policy is to provide collaborators with a point of reference in their daily activities to avoid potential compliance violations. While understanding that the scope of the policy is limited to areas of particular practical significance for the corporation, employees need to become familiar with the appropriate rules and regulations as needed and if in doubt, seek advice. With regards to governmental regulatory compliance laws such as the Gramm Leach Bliley Act, Sarbanes Oxley or HIPAA (the healthcare information privacy act), ignorance does not constitute an excuse for the potential consequences of a rule violation. If necessary, employees must be able to obtain guidance from superiors in the corporate hierarchy to take responsibility for the respective legal compliance or any specialty service business, including legal services, the audit department or security department of the company. It is particularly recommended for employees to utilize the appropriate resources in case of danger or risk to themselves or others, or when the legal situation is ambiguous.
Corporate Regulatory Compliance
Conduct not meeting legal and ethical regulatory compliance requirements can have serious consequences for the company including civil injunctive actions, penalties and fines. Corporate officers who violate compliance regulations may face increased personal liability, charges of securities fraud or even prison time if convicted for the crimes of the company.
