Compliance and Organizational Sustainability
Sustainable organizations that seek to be successful in the long term need to establish and maintain a culture of compliance, considering the needs and expectations of its internal and external stakeholders. Compliance is an opportunity to demonstrate that the organization is a successful and sustainable organization. It seeks always to do the right things.
Compliance is an ongoing process for the organization to meet its obligations. Compliance is best when it is embedded in the culture of the sustainable organization and in the behavior and attitude of people working for the organization. It is best with compliance is integrated with the organization’s other programs coordinated by the sustainability program.
An effective, organization-wide compliance management system enables the organization to demonstrate its commitment to comply with relevant laws, regulatory requirements, industry codes and organizational standards, including standards of good governance, generally accepted best practices, ethics, and community expectations.
An organization’s approach to compliance is shaped by the top leader(s) by applying core values and generally accepted good governance, ethical and community standards. Embedding compliance in the behavior of the internal stakeholders depends on leadership and clear values of an organization, as well as an acknowledgement and implementation of measures to promote compliant behavior. It this is not the case at the corporation, the operating facilities and the supply chain, there is a risk of noncompliance.
In many jurisdictions, courts have considered an organization’s commitment to compliance through its compliance management system when determining the appropriate penalty to be imposed for contraventions of relevant laws.
An organization’s approach to compliance is shaped by the leader by applying core values and generally accepted good governance, ethical and community standards. Embedding compliance in the behavior of the people working for an organization depends above all on the top leader and clear values of an organization, as well as an acknowledgement and implementation of measures to promote compliant behavior.
In some jurisdictions, courts have considered an organization’s commitment to compliance through its compliance management system when determining the appropriate penalty to be imposed for contraventions of relevant laws.
Organizations are increasingly convinced that by applying binding values and appropriate compliance management, they can safeguard their integrity and avoid or minimize compliance with the organization’s compliance obligations. Integrity and effective compliance are therefore key elements of good and diligent management. Compliance also contributes to the socially responsible behavior of organizations.
One of the objectives of this blog is to assist organizations to develop and spread a positive culture of compliance, considering that an effective and sound management of compliance-related risks should be regarded as an opportunity to pursue for some of the benefits provided to the organization:
Improving business opportunities and sustainability
Protecting and enhancing an organization’s reputation and credibility
Considering expectations of all stakeholders
Demonstrating an organization’s commitment to managing its compliance risks effectively and efficiently
Increasing the confidence of third parties in the organization’s capacity to achieve sustained success
Minimizing the risk of a contravention occurring with the attendant costs and reputational damage.
ISO 37301:2021 (Compliance Management Systems – Requirements with Guidance for Use) provides everything an organization needs to know to develop, implement, maintain, and improve an effective compliance management system.
Dr. Bob Pojasek
Sustainability Legend | ESG Reporting & Disclosures | Uncertainty Risk | Pollution Prevention Expert | Process Improvement | Organizational Sustainability Reporting | Sustainable Procurement Professor
Chairman, Education and Research Executive Board (EREB)
VCARE Academy Inc.
Center for Corporate Performance & Sustainability
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