In today’s business world, changes are affecting how corporations and even small businesses look at and handle issues concerning ethics and compliance. Instead of ignoring certain matters or keeping employees in ignorance – sometimes with dire consequences, companies are beginning to build business policies. In Chicago, it starts with the understanding that certain components are fundamental for success. It is essential that a corporation know the following components are necessary if the compliance program is to be a success.
Commitment and Support of Management
If you plan to build business policies in Chicago that are effective, you need to have the support and total commitment of the management team. This is critical. From active management to the board of directors, everyone must be on the same side and page before a program of this nature can have any effect on the entire corporation. If necessary, hire a full-time compliance officer to make sure the program is overtly shown as receiving the support of management at all levels.
The officer can ensure the board, management and employees are all aware of the existence of the compliance policies and any changes in government, corporate regulations or ownership that may affect the applied business policy. Overall, a compliance officer and/or external management team will provide the following:
- Monitoring of all business activities – particularly as they relate to compliance issues
- Ensure employees receive training in this field
- Audit
- Document all efforts of compliance
- Be part of an ongoing compliance evaluation team or system
Corporate Compliance Assessment: Risk-Based Approach
To effectively build business policies, the approach adopted must be risk-based. This, as is to be expected, must be tailor-made to address the specific corporation. It will also need to be flexible while placing emphasis on each Chicago organization to make the necessary changes, including the dedication of specific business resources, to ensure the compliance program will be apt, relevant and effective.
Mechanisms for Auditing, Monitoring, and Reporting
It is very important that this part of a plan on how to build business policies is in place and active. If this is not applied, it does not matter how excellent the content of the material is, it will not be effective in the long run.
Consequences and Incentives
Part of an effective compliance program is the understanding that failure to comply will result in disciplinary action being taken. It is also more effective if there is some form of incentive to comply beyond the purely punitive measures.
Evaluation
Evaluation is an integral part of any program, compliance or otherwise. When you start to build business policies, it is imperative you include a mechanism that will allow you to easily assess its effectiveness on many different levels.
How to Build Business Policies in Chicago
If you plan to build an effective compliance policy in Chicago, it is important you look at how to best construct it. By examining it in accordance with the above compliance principles, and tailoring it to meet the demands of your own company, you can build business policies in Chicago that will continue to meet the changing nature of compliance policies and programs at each and every level.
