Compliance – More Than Just A Buzz Word

With an effective compliance management system, risk management can be significantly reduced. The term”the goal of compliance is the securing and monitoring of compliance with legal and corporate requirements. Scandals in the United States (E.g. ENRON) and in Germany (E.g. Siemens) led to increased awareness of the compliance and were the cause of legal restrictions (such as the Sarbanes-Oxley Act). The legislation and case-law in Germany were thus influenced. This compliance is nothing more than obeying laws granted within the framework of a proper corporate governance. A management body that does not respect that, contrary to its due diligence (E.g.

43 para GmbHG or 93 par. 1 S. 1 German Stock Corporation Act) and is under the circumstances any person ( 130 accordance). The benefits of compliance as quickly from unbedachtem action is a discontinuance compliance failure, reflected for example in shopping and Selling practices, which include generous gifts to party. Or a too innocent exchange of information between competing companies can hurt quickly antitrust requirements.

Arbeitsrechtlicher or data protection provisions violate this often leads to a sustainable reputation and image damage to the company. The implementation of a compliance function minimized not only law and rule violations and thereby reducing the liability risks for companies and business leadership (so-called protective function). Also improves the performance of a business culture based on ethical values and sets so that is the basis for sustainable business success. Employee loyalty rises, as well as the bond between investors and customers to the company. A compliance function increase indirectly the value of the company. Compliance have already set up the most corporate compliance departments in the middle class. In the middle class, however, it is for the Managing Director, mostly for the Compliance with certain codes of conduct. Medium-sized companies are conditionally characterized by the typical unit of ownership and management by slim hierarchies and traditional business and decision-making processes.