Implementing Statutory Compliance with 5 Simple Stepsadmin
Any organization is only as good as the synergy between its employees and the higher-ups. For this synergy to deliver on effectiveness, two crucial elements are necessary: corporate governance and compliance.
Corporate Governance implies to a system of rules, practices, and processes that a firm uses to direct and control its efforts. This encompasses almost every tier of management. It includes aspects such as action plans and internal controls to performance measurement and corporate disclosure.
Compliance is the backbone of any organization. Compliance signifies to the practice of adhering to a set of laws, standards, or regulations that have been set forth by governing bodies or entities.
Compliance is of 3 major types:
Regulatory Compliance: Abidance of rules, as stated by a regulatory body under the mandate of a state or central government.
Statutory Compliance: Abidance of laws passed with a local, state, or central government. The practices taken up by employees and the management of those practices by higher-ups are called statutory compliance management.
Legal Compliance: Abidance with all laws concerned with the business processes and activities carried out within an organization. Under legal compliance comes the aspect of Labour Law Compliance – adhering to rules and regulations related to employment conditions and employees’ well-being.
Governance and compliance are two interrelated aspects that ensure that a company’s workings flow smoothly. While governance sets the level of quality and standard, compliance is how it is embodied and enacted.
Implementing compliance in an organization, however, is easier said than done. It may be challenging for managers to ensure that a large company adheres to rules and regulations. However, five simple steps can help managers cut through any difficulty with ease.
- Involving Divisional Leaders
As is the case in any organization; divisional managers are responsible for overseeing their particular divisions or departments. Hiring a specialist who can bring the divisional managers on board with new compliance initiatives and practices will prove invaluable. These managers will find it easier to be informed and direct their subordinates’ efforts toward more compliant practices.
- Conducting Assessments
Conducting assessments to see which areas of the organization are at risk is necessary to enforce compliance. For instance, in the retail sector, a review finds that a business concern violates labour law shops & establishment compliance. It now becomes more accessible for higher-ups or management to correct these practices that violate compliance. Assessments can also find which areas are at risk of compliance so that management can effectively course-correct.
- Developing Policies and Procedures
Once these assessments are conducted, it becomes imperative that management creates a watertight set of policies and procedures. These policies should be informed by up-to-date knowledge of current laws and regulations related to compliance. There will have to be periodic assessments to ensure that these policies do not become obsolete.
- Training and Communication
Once these policies are developed, organizations have to communicate and train their employees effectively. Organizations have to ensure that training must be done so that employees understand the necessity of such practices. They must also ensure that employees adhere to these rules and policies to stay compliant. Training and communication must also be periodic owing to the changing nature of laws and regulations.
- Audits and Reports
Compliance audits and reports are an excellent way for organizations to understand just how compliant they are. It is an effective way for employees to stay on top of things and ensure that their activities adhere to all required compliances. Report generation is a great way to understand trends, practices, and growth while staying compliant.
Indigent corporate governance and compliance management can lead to a company failing to achieve its stated goals, and, at worst, may lead to the downfall of the business and significant financial losses for shareholders.