Corporate Compliance: Why is it relevant?



What is compliance in a company?


Compliance is an Anglo-Saxon term that refers to compliance with regulations and crime prevention by companies. The term is used in English as the control of the good practices around companies began with different financial and corruption scandals in the 70's in the United States. Since then, more and more companies have applied a Compliance system thanks to its benefits, to the point of creating the World Compliance Association to ensure its correct development.


The function of Compliance is to prevent and solve possible legal risks and malpractice in business activity. The system consists of creating protocols that contemplate the risks the company might face and thus ensure that no law is breached. In addition, having these protocols also guarantees good management and resolution of the troubles that may arise. These protocols can be the company's ethical and behavioural code, among others.


Depending on the structure and size of the company, there will be a single person (Responsible for Compliance / Compliance Officer), a group of workers, or an external service who is/are responsible for Compliance.



What are the benefits of Compliance?


Compliance is crucial to avoid risks and malpractice within the company, knowing how to act in the event of unforeseen events or problems, and ensuring the correct development of the business activity. Beyond all the mentioned benefits, it influences the company parties positively. 


As a worker, you are interested in being in a company with Compliance present and up-to-date because they will provide you with all the protocols and codes to follow to ensure that you do the job well. In addition, you will know how to act in the event of malpractice, and if something happens at a business level, you are sure they will know how to approach the situation.


Similarly, the insurance that compliance gives the workers extends to the company executives and associates. At Axxon, for example, we have had a Compliance committee for some time guaranteeing the company and workers' safety and good practices.


On a business level, compliance creates trust and quality relationships with other companies as both parties ensure the correct performance and good intentions in the collaboration.




Why should you enhance compliance?


We must be aware that a complete and integrated Compliance system is an asset of great value for the company, the people who are part of it, customers, suppliers, and society. Promoting ethical conduct within the company, as well as being prepared for any legal risk, allows other companies or clients to generate more confidence in the company's services given the assurance and intention that things will be done right, while the company culture has a positive and honest impact on its environment and society.


The workers feel more secure, calm, and protected with these established protocols which also reinforce their feeling of belonging and contribution.


At Axxon, as a temporary employment and recruitment company, we are highly committed to people and values. Therefore, we constantly ensure regulatory compliance while acting consciously to impact every professional relationship positively.