This is good for employee morale and helps bolster your corporate reputation, making integrity more than a matter of legal necessity. Clients, investors and regulators may also understand and respect the company’s commitment to this core value.
Managers often see compliance as a necessary evil because associated controls have traditionally focused on preventing violations of laws, regulations and internal procedures. Businesses put these controls in place to avoid costly disputes, enforcement actions and penalties, and other sources of reputational risk. Companies also aim to maintain the right to operate in specific markets, tending to distinguish between activities permitted under two sets of standards that don’t always match: the letter of the law (legal) and the spirit of the law (ethical).
By integrating and aligning controls with and operational processes, we can help an organization gain benefits beyond purely functional protections and allow it to fulfil multiple objectives simultaneously. It can actively enhance the organization’s reputation and perceived value with stakeholders and make it easier to work with partners, partner companies, suppliers and regulators. This approach can also help organizations comply with complex laws and regulations in national and international markets.