Benefits of Corporate Compliance
The reform of the criminal code in Spain has increased the interest in corporate compliance, since new changes the responsibility for crimes committed by managers and workers rebound on companies.
Expert lawyers in the word recommend to firms contract a corporate compliance program because prevention is better than cure.
We provide below the main advantages of this procedure so that you can decide better the convenience of implementing a compliance management system (Corporate Compliance) in your company.
Knowledge of risks. Thanks to the implementation of Corporate Compliance, organizations are more aware of the activities and dangers of each department and possible violations of the law.
Economic savings. Implementing this program, companies reduce the monetary costs of lawsuits, damages and penalties imposed for violate the current legislation.
High efficiency. With corporate compliance processes are improved, companies spend less time repairing possible defaults and they can focus more on their own business.
More control. When a regulatory compliance management program is established in organizations, control is decentralized and when it is diversified, it increases efficiency.
Requirement of responsibilities. When a Corporate Compliance system is implemented, obligations are transferred to investors, shareholders and activist funds.
Greater reputation in public and private competitions. Corporate Compliance increases the chances of being chosen in a public and private competition. It is a guarantee of being aware of the obligations. This leads to an increase in market confidence.
Corporate Compliance has many advantages in the companies that apply it. Its implementation is the best way to adapt us to the changes in the penal code. It avoids interrupting the process of growth of your company.
What is corporate compliance?
Corporate compliance is effective organization and management programs that include the appropriate monitoring and control measures to prevent offences committed by legal persons.
These internal rules help companies to avoid paying fines and tax penalties. In accordance with current Spanish regulation, companies are required to hire legal advice to implement a corporate compliance program to prevent any corporate crime.
Five essential elements of a corporate compliance program
1.- Leadership. If a company wants to carry out a successful compliance program it must be built on a solid foundation of ethics and it must have high-ranking compliance officers with the authority and resources to manage the program on a day-to-day basis.
2.- Risk assessment. A company designs a risk assessment to provide a big picture of its compliance obligations and then identify areas of high risk so that it can prioritize its resources to tackle these high risk areas first.
3.- Standards and Controls. In general every company has three different levels of standards and controls: code of conduct; standards and policies; procedures. Companies should ensure that compliance standards are implemented.
4.- Training. It is another pillar of a strong compliance program. It is very important to train employees, third parties and officers on laws, regulations, prohibited conduct and corporate policies.
5.- Oversight. Any company should monitor employee behavior and checks whether They are staying with the compliance program. Monitoring is a responsibility to reviewing and detecting compliance programs in real time and then reacting quickly to remediate them.
To implement corporate compliance programs efficiently and effectively your company needs legal professionals as Fortuny Legal, an organization specialized in corporate compliance, that advises corporate clients about a Corporate crime prevention model.