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The impact of Compliance Commitment on Economic Crime

The Compliance Culture can be understood as a subculture of corporate culture, which should lead to a common orientation of the values, norms and traditions within the company.

A Compliance Vision statement and a Compliance Mission statement should therefore act as a basis for decisions.

The Compliance Vision identifies the strategic objectives for the next two to five years and focuses on integrity and a value culture. The Compliance Mission is the commitment to compliance and is intended to make clear what is permitted and what is not. It is therefore not sufficient to rely on the previous visible compliance artefacts (formal order), such as signed guidelines, completed e-learning, etc. Rather, compliance-compliant behaviour must also be found in informal orderliness and structure, ie in informal behaviour. Only at this point can the sense of right and wrong be influenced in favour of the compliance organization. Success can be achieved with the establishment of business ethics.

 

Business ethics serve moral self-control

Through appropriate compliance actions, the long-term goal of the Compliance Vision should be that the employee behaves in a compliant manner from his sense of duty (autonomous morality). Business ethics can therefore strengthen the autonomous morality within the framework of integrity initiatives. A positive side effect is that this also inhibits the perception of action.

Business ethics should therefore be understood as part of the daily process so that they also have an effect below the surface.

Therefore, the following should be taken into account when introducing Business Ethics:

  • They must be written precisely so that a higher level of explicit self-commitment is achieved.
    • eg: For particularly risk-affected areas, specific guidelines are required, which are developed together with the employees concerned.
  • They should be implemented in the “daily processes” and be cited again immediately before courses, trainings and employee interviews, so that moral action takes place through the reflection on one’s own values and on the ethical relevance in the particular situation.
    • eg: Management and executives should already be involved in the development of a compliance risk analysis, e.g. in the context of compliance risk assessments, individual interviews and workshops. Before the workshops, interviews or assessments, business ethics should be addressed.

Business ethics can therefore be understood as a mediator between compliance and integrity. The connection between compliance and integrity is Compliance Commitment. At the operational level, business ethics can lead to a higher Compliance Commitment, which can lead to fewer offenses and thus to the avoidance of economic crimes.

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Author:

The author is head of compliance in a medium-sized company in the real estate sector. His main focus is the design of CMS, the conduct of internal investigations, HR compliance and the strategic approach to non-compliance.

Book publication: “Influence of Organizational Culture and Organizational Justice on Economic Crime: Implementing a Compliance Committee”

If you want to hear more about Compliance and our Expert Tommas Kaplan, feel free to read his book: http://www.verlagdrkovac.de/978-3-8300-9228-5.htm?lang=english

Article done in cooperation between Elyas Bozan, our Managing Director Germany and Tommas Kaplan, one of our Experts in Compliance and HR.

If you want to share ideas with our contact, please feel free to contact us: ebozan@morganphilips.com

Morgan Philips Executive Search – Healthcare & Life Science

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