Top Corporate Compliance Issues in 2019: How to Keep your Company Safe
Corporate Compliance refers to the various rules, regulations and laws of an area, region or country that a company or business has to follow or comply with. These compliances are a combination of guidelines for a corporate for both; it’s internal and external governance.
Corporate Compliance is not only compulsory but also ensures that an organization is protected and safe. It is also very safe to say that non-compliance affects and impacts the internal culture, climate and environment of a business. Below are some very important and critical compliance items and in what way they safeguard a business.
All compliances become critical or important depending on the age and size of the company. For example, some compliance is more relevant at the start of a business and some compliances become important as the company grows in terms of people or financial worth.
Legal Compliances are the basic and starting point of corporate compliance. Though there quite a few legal compliances, Company registration is the first and foremost legal compliance requirement. In any part of the world, anyone wanting to conduct business should register their company. By registering a company, you declare to the relevant authorities, government and the public in general, that you want to carry out business transactions under a certain business name. You will also provide the names and details of the business owner or owners, location of the registered office, the products or services, the type of businesses as in trading, manufacturing or services and the amount being invested individually and collectively. Thus, by being compliant and creating a legal business entity, an entrepreneur or an organization makes its intent clear and transparent. Being a legal business entity is a minimum requirement to be able to commence business activities or in a court of law. For example, if your organization has been defrauded or cheated in some way, being a registered organization, you can take a legal recourse and recover your money, damage or losses.
Except for a non-profit organization, business is all about money. You are not in business for charity but for profit. If legal compliances are the pillars on which an organization stands, money is the blood that flows throughout the body of a business. If the money stops flowing, the business becomes defunct and dead. Financial Compliances ensure accuracy, accountability and transparency of the money inflow and outflow of a company. Activities under financial compliance act as an internal ‘watch dog’ which monitor and regulate the money management system of the business. Not just for the organization, but compliances become a standard and guide for employees to follow and adhere to at all times. Thus, financial compliance measures help an organization to be safe internally and also follow the rules framework set out by the governing bodies and authorities. For example, an Internal Audit ensures that the financial management of a company is in order and is following rules. In the absence of an Internal Audit, financial fraud or mismanagement comes to light or surfaces in front of external authorities and this may lead to many problems for a company.
Labour Law Compliances
A company means its employees. They are the heartbeat of the organization. Just as an investor and the investment is like the air we breathe, the employees make the wheels of the business turn. There are a set of rules and regulations to be followed by a company if they hire employees to carry out their tasks and activities. The most important aspects of Labour Compliance is the terms of employment between the company and the employee. The terms include the responsibilities, agreed compensation, hours of working, additional benefits etc. If an organization does not follow Labour Law Compliances, even before reaching the external authorities, it becomes an internal problem first. For example, if a company does not pay their employees, the agreed salary or on time, the morale and motivation of the employees is impacted. In turn, this may affect the productivity of the employee and also the team. Labour Law Compliance alone does not guarantee employee performance. There are other factors like the leadership and people management policies that determine employee productivity. However, compliance and adherence in this arena is a very good foundation for employee management.
Apart from these, the other critical areas where organizations would have to pay attention to and focus on compliances for 2019 are Sexual Harassment Prevention, Safety, Anti-Money Laundering, Whistle Blower Policy and Data Security. For any advice or guidance on compliance management for your company, TalentPro is your trusted partner.
Compliance is complex and highly detailed. Businesses require effective compliance solutions and consulting services to keep pace with constantly changing standards. At, TalentPro we offer compliance services that perfectly meet your organization’s requirements
Being Compliant is very important. Call us today 04442123497. We will begin with a compliance audit, bring you on the right side of the law and keep you there as your work to grow your business.
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