Who is involved in compliance?

The compliance system is a system to prevent violations not only in the area of law, but also in the area of unfair practices or unethical behaviour.

The concept of compliance is extremely broad. This means that the scope of application of a properly functioning compliance system is very complex and affects practically every aspect of company activities.

The main task of the compliance in a company is to implement mechanisms that will effectively eliminate the risk of non-compliance.

In order for the system to be effective, compliance must be ensured both internally and externally, which means that all members of the company should comply, as the system applies not only to employees and management, but also to business partners and contractors. All parties working with the company should be aware of the scope of the established procedures and apply them in practice.

How to implement the compliance system?

In order for the compliance system to be as successful as possible, it should operate on two levels: internally and externally.

• Internal domain

Internal operations, i.e. those undertaken within the organisation, should include, in particular, elements such as the development of regulations, policies, procedures and codes of conduct to be implemented for use. In connection with the adoption of the aforementioned regulations, care should also be taken to educate all employees about their responsibilities, as the decisions they take affect the entire enterprise and may have negative legal consequences.

• External domain

The external domain of the compliance refers to actions towards contractors, customers, subcontractors and legal institutions. In this domain, the organisation’s main obligations are the protection of personal data and keeping professional secrets confidential, as well as any anti-corruption measures, the prevention of manipulation or the reporting of violations. In addition, care should be taken to ensure that all contracts are entered into in accordance with the law, while all business activities should be undertaken in accordance with established compliance regulations.

In order for the compliance system to fulfil its functions and deliver the expected results, its implementation alone is not sufficient. It must be monitored on an ongoing basis and adapted to changing regulations and the situation within the company as well as its environment.

In the next article, we will introduce you to the institution of the Compliance Officer and point out the basic tasks the one should perform.

Please read our other articles on compliance:

Compliance – part II – compliance system

Compliance – part I – introduction