Building a Culture of Compliance: Strategies for Long-Term Success
Information is much more accessible today than ever before. The world isn’t just experiencing an increase in the number of startups but also in the ease of access to information regarding businesses of all sizes. Stakeholders are much more informed than ever before. This comes hand in hand with a growing need for compliance.
What is a Culture of Compliance
We all know staying compliant is best for our business. But what really is compliance? How do we create a culture that supports it?
An article by Forbes stresses upon the idea of “living up to strong ethical standards” and links it to the establishment of compliance culture. Let’s break that down.
While compliance is the act of following a predetermined set of rules and regulations, often implemented by the government, compliance culture is nurturing certain values, behaviors, and attitudes that encourage people to adhere to policies, regulations, and procedures. In short, they should be inspired to work ethically every day.
How to Build a Strong Culture of Compliance?
What are the factors that lead to a strong culture of compliance? Let’s go through them step by step;
1. Leadership and Commitment
A tree is only as strong as its roots, and the roots of any company are entrenched in its leadership. Leaders should be committed to their staff and should be role models for the ethics they want their employees to adopt.
Regularly communicating the importance of compliance as well as engaging and holding exciting discussions on the topic could add to compliance culture.
2. Training for Compliance
For successful compliance training it is essential to bring on board people who can handle the subject matter. Encourage intensive training programs for your employees through corporate compliance who have in-depth knowledge of regulations and corporate ethics.
3. Encourage Conversations
Don’t let compliance implementation be a one-way street. Let your employees educate you on what’s best for them and how the process can be made easier.
Open dialogue and clear communication channels encourage your employees to ask questions, clarify, and share their input as well as assure them their concerns will be taken into account.
4. Implementation is Key
It is essential to implement compliance-related reforms once they are released to the employees. This should hold true for all levels of staff and failure to comply should lead to disciplinary action. An inability to implement such reforms could shake your employees’ trust in your word.
5. Don’t Be Afraid to Change
Although you may invest a lot of time and resources in the first phase of regulatory efforts it is essential to stay up to date with any changes in the industry and follow suit. This can be done by gathering feedback from your employees or hiring people who can do that for you!
To Sum It Up
Building a culture of compliance should be an activity that begins at the core of the company. Change should be modeled by the leaders and inspired within employees at all levels of the organization so it is implemented as smoothly and efficiently as possible!
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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