Does My Company Need a Compliance Policy?
Establishing a compliance policy is an asset in many ways, including how it protects your company against liability. Maintaining an EOS® Core Process is just as imperative as it ensures items that need to be done consistently well every time are completed. When a compliance policy and Core Process work in conjunction, your company can benefit from operational consistency and encourage change and innovation within your company.
Effective compliance policies contain several features, such as a corrective action, guidelines for educating your team about the policy, and the process for monitoring adherence to compliance standards.
Working with a part-time CHRO can help your organization develop a comprehensive compliance policy.
What is a Compliance Policy?
Compliance policies and procedures consist of documents that form the foundation of any company compliance program. These documents help companies comply with laws and regulations and as maintain an internal compliance program for issues such as discrimination and sexual harassment policies. Another vital reason for establishing a compliance policy is to provide standards of conduct, informing employees how to perform their jobs legally and ethically.
Your company can create a corporate compliance policy internally or hire a CHRO to develop one in collaboration with your human resources department.
Why Do Businesses Need Compliance Policies?
Establishing a company compliance policy is essential for four reasons:
Protects the Company from Liability
Establishing a detailed company compliance program can shield your organization from legal liabilities. Your company’s compliance manual should contain clear, unambiguous language that states how your company responds to a wide variety of legal issues.
Boosts Your Company’s Reputation
Warren Buffet once said, “It takes 20 years to build a reputation and about five minutes to lose one.” Consumers interact with organizations that have a record of operating with honesty, integrity, and transparency. Much like the EOS® Three Strike Rule, which is a clear way to provide expectations around their roles and responsibilities. Establishing a compliance policy demonstrates your company's commitment to operating with integrity and transparency, both of which boost your reputation.
Drives Change and Innovation
Compliance can act as an influential tool for producing beneficial long-term changes for your company. However, one of the reasons compliance policies and procedures fail is because they are created to control behavior, not encourage it. To avoid this, make sure that your policies and procedures reflect your company's goals and culture. From there, you can promote change through innovation, which should be at the heart of your compliance policy. For example, when communicating your company’s compliance policy, use innovative methods such as videos, mobile messages, and animated cartoon scripts.
Ensures Operational Consistency
Ad hoc decisions made in a management vacuum often leads to organizational chaos. A program that establishes operational standards, must ensure consistency throughout every department. Establishing values, ethics policies, and codes of conduct provide a reference point for every employee about how to conduct business in the workplace.
What is a Fractional (CHRO) Executive?
A Fractional CHRO Executive or HR Director can help you create a compliance policy suited to your industry and culture while helping you educate employees about compliance standards. A Fractional CHRO also ensures your compliance policy receives regularly scheduled audits and includes clear instructions on taking corrective action.
The Next Step: Get Help Crafting Your Compliance Policy
Fractional executive services help companies handle professional obligations such as accounting, technology, and human resources. One essential human resources service a fractional executive provides is writing and establishing a corporate compliance policy.
Learn more about how a part-time human resources executive can help craft your company’s compliance policy by scheduling a free consultation with GCE.