1.0 Introduction
Compliance program is generally defined as series of programs which are designed to achieve the compliance by preventing the firms from breaking the laws and regulations (Ronald, 2009). According to Commerce Commission, the establishment of effective compliance program is aligned with the strategic goal of Fair Trading Act 2007 section (1A) which is to provide a fair disclosure of the goods and services information to consumers and to promote effective competition. A comprehensive compliance program is intended to prevent the organization and employees from any inappropriate conducts which may breach the Fair Trading Act and it helps businesses to cater for specific risks identified in the firms. Many of U.S. companies have effectively encountered the internal issues of the firms which indicate the positive progress made by the implementation of the compliance program (Deloitte and Compliance Week, 2013).
This essay will further discuss the compliance programme in two categories. Firstly, it will outlay the costs and benefits of having compliance program in an organization. Apart from that, this essay will also outline the effects of implementing compliance program towards businesses and their employees and how it can help to achieve the aim of the Fair Trading Act 1986.
2.0 Advantages of Compliance Program in Businesses
The idea of developing and implementing corporate compliance program is to avoid improper conduct, promote adherence in organization’s legal and ethical obligation as well as effective competition among the firms.
2.1 Early Detection of Misconduct Issues
An early detection of misconduct due to the implementation of compliance program allows businesses to address the real risk and deter any...
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...rvices to the customers. Hence, the establishment of compliance program creates a guideline that urges the corporations to be responsible for the actions that they commit and helps to detect any misconduct and offenses.
Nevertheless, the implementation of compliance program requires higher cost and once the corporations introduce the compliance program, they are bound to comply with the standards listed. The disclosure of the internal reports may as well disadvantages the firms by creating substantial risk that will waive the information protection from attorney-client. In my opinion, corporation should consider developing and implementing effective compliance program despite having certain disadvantages. This is because, compliance program proves to help corporation to achieve the purpose of Fair Trading Act 1986 and promote effective competition among businesses.
Compliance is pertaining to the adherence to laws and regulations that the company is subject. Raven Head Ranch did not follow this objective when they were writing checks approved by the same person and putting them in unapproved projects, for example the Volunteer Fire Department. The VFD had been receiving funds from misappropriate accounts for three years. Fifty individual disbursements were taken from the community checking account and had no proper recording, just charged to random accounts, which breaks the regulations and laws of proper accounting. One of the BoD members, Sam, was not even a resident of RHR and was on board supervising the employees with no legal right
The specific obligations in this case would include monitor corporate governance activities and compliance with organization policies, and assess audit committee effectiveness and compliance with regulations
The compliance plan should include a code of conduct. By establishing a code of conduct, the organization establishes a commitment to ethical and accurate coding practices that will follow all regulatory guidelines set forth.
A company that announces deficiencies in its internal control will more than likely have a fall in their stock prices. Investors will not trust that company’s financial information. The investors know that the company will be hit with fines for not complying with the regulations. No honest investor wants to be involved with a company that defies the government.
...efits from adopting unfair business practices and discouraging competition are much higher than the expected penalty and punishment. With changing time, there is need to make these laws more effective and relevant.
Correctional program writing nowadays is at a level of efficiency that surpasses earlier outlooks. In territories all over the United States, there are several curriculums that use research-based curriculums to teach, instruct, and inspire inmates. Disappeared are the days of hit-or-miss execution of curriculums that seemed good, but over and over again just occupied time for the inmates. The previous evolution happened for several reasons (Corrections Today, 2010). The largest wake-up demands was the claim composed around thirty years ago. The statement made was not anything works in corrections systems, mainly rehabilitation. Even though this commonly revealed report was taken from its context, it did in detail carry some notice to the mystery that several penitentiaries were not operational as change
For a company to be successful ethically, it must go beyond the notion of simple legal compliance and adopt a values-based organizational culture. A corporate code of ethics can be a very valuable and integral part of a company’s culture but I believe that it is not strong enough to stand alone. Thought and care must go into constructing the code of ethics and the implementation of it. Companies need to infuse ethics and integrity throughout their corporate culture as well as into their definition of success. To be successfully ethical, companies must go beyond the notion of simple legal compliance and adopt a values-based organizational culture.
Once the workers comprehend the business and how it works then they can assess the distinctive budgetary records as to if the enterprise is really doing and suspected. Be that as it may, on account of Nortel this would be troublesome as they were not precisely reporting their profit. This is the place the direction of discipline would have been viable so that when an association was observed to be dishonest then they would be issued a discipline or a fine to keep them working in a moral way. This would be the last need for cures as you can expect by then that the association has effectively accomplished something incorrectly or off base which is prompting the discipline. Through utilizing business instruction first you can permit representatives to completely comprehend the association and stop deceptive practices. This is finished by having the representatives screened and enlisted as moral individuals and additionally being prepared in morals. This prompts workers considering each other responsible for their activities and not enduring a dishonest domain or practices. Using the Code of Ethics and Code of Conduct workers can be considered responsible to make sure they are carrying on in a moral way. In the event that they are observed to mishandle this then they can be rebuffed. The organization can be controlled by assessing the monetary records furthermore
Although Hollate introduced a compliance program and code of conduct when it went public, the programs were put on “the back burner”. This outcome is not surprised for that the company does not pay attention to the programs. It is, therefore, important to “reinforce the values” and “employee a boundary system when actions are inconsistent with the code of conduct” for the purpose of early detection. Tyco provides a good example after its scandal, by initiating “mandatory annual compliance training for all its employees worldwide” and creating the Tyco Guide to Ethical Conduct to familiarize employees with company expectations and help them make ethical decisions. As tips is the most useful method for internal and external sources to detect frauds, the whistleblower hotline should be well communicated with encouragement on reporting any suspicious activity. In addition, to improve the effectiveness of the compliance program and code of conducts, Hollate should implement management monitoring and evaluation on a regular
Within a company, illegal practices can be seen by many as the “in thing” and the people working within that environment may not see what they are doing as morally wrong. The issue of the lack of media coverage of these types of crimes must also not be overlooked.
Most organisations begin the method of establishing organisational ethical projects by introducing codes of conducts. It helps to generate public trust and improve
There are several laws in the United States that are meant to set a standard for fair, balanced, and competitive business practices. These are, by design, a way to ensure that international trade as well as domestic is done in a reputable and progressive fashion. There are many aspects that come into scrutiny in considering whether a business is operating in a way that is fair; one view can be related to The Eagle and The Condor Theory. “There is no universally recognized definition of Fair Trade, but its principles and practices include fair wages, cooperative workplaces, consumer education, environmental sustainability, direct trade with producers, financial and technical support for producers, community development, respect for cultural identity, and public accountability through transparency.” (Stenzel, 2012). Related to this description of fair trade, there are laws in the U.S. that aim to regulate business. One such law is the Federal Trade Commission Act of 1914.
The purpose of the CMP is to solidify their organizational culture of integrity, ensuring that every person acts honestly and ethically in conducting everyday activities and making decisions. The CMP has three areas of focus: “The Compliance Management System, prevention of unlawful activities, and response to changes in regulations” (People 30). Throughout all departments are compliance teams that specialize in protecting the reputation of the company as well as individuals in the company through a process of “prevention, monitoring, and post-management” (People 30). Figure 1, below, is a graphic from the 2015 Samsung Electronics Sustainability Report, which illustrates how compliance management is incorporated throughout the organization (People
Universities try their best in order to ensure that all employees follow the law and abide by their ethically. School's such as Penn State , Ohio and Arkansas try to culturtive and encourages ethical conduct and compliance with the law, and university policies. By providing a baseline understanding. Such as support. For instance if school implemented, the subject-based compliance experience. Such provide
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.