Many people are still unaware of the benefits of compliance programs. Especially in Latin America, where it is a new concept that is gradually being integrated into the practices of small and medium-sized companies. We have seen growing concerns from CEOs and shareholders who want to discover the weak points of their organizations. For this reason, many law firms are promoting this type of legal advice to adapt risk prevention programs to the realities of each business. In that sense, in this article we will address some of the reasons why it is necessary to implement a risk prevention program. compliance in your company.
1- Promotes ethics in the work environment.
One of the main benefits of implementing a compliance program is that employee loyalty can be strengthened. This is because adopting these management systems through codes of conduct helps greatly to promote a healthy environment for employees. In this way, ethical codes and the development of good practices framed within the law make employees feel comfortable socializing and working in the company.
Therefore, it is important to encourage the participation of all employees in the compliance or regulatory compliance. Since they themselves are the executors of the daily activities, with this knowledge of standards and laws they will be able to identify and report processes that can be improved. Therefore, by adhering to a monitoring program and keeping the company at a constant quality standard, a healthier and more productive work environment can be developed.
2- Detects and neutralizes unlawful conduct without affecting the company's reputation.
Another of the benefits of implementing a compliance The main reason for this is that illicit behavior on the part of employees can be detected at an early stage. This happens when special controls are evaded and inappropriate transactions or behaviors are evidenced. In many cases things like detour of funds, increase of costs and services, money laundering, among others, happen. Therefore, by periodically monitoring the company's daily activities, the risks inherent to financial crimes can be prevented.
In this way, by resolving a legal conflict within the company, confidentiality is guaranteed and the company's operation and reputation are not affected.
3- Promotes the exchange of information on the company's daily practices.
This set of legal and administrative tools is translated into procedure manuals and best practices. In this sense, internal policies play a fundamental role in promoting the exchange of information within the company. There, the methodology must be adjusted to ensure that each business unit is in constant feedback among the other departments. This means that they must share information among themselves so that they understand the impact of their actions within the company. In order to mitigate the legal risks of operation to a minimum.
4- Helps to attract foreign capital investments due to the company's seriousness and commitment.
When implementing a program of corporate compliance in your company you can have the opportunity to attract all kinds of investments with foreign capital. Because companies that adapt their activities to regulatory compliance tend to have all their permits and documentation in order. So it is difficult for them to find themselves in unexpected legal conflicts, thus raising the risk of losing the investment. In this sense, trust is a fundamental factor that benefits from the implementation of a program of corporate compliance. Because they are general regulations that adhere to the legal framework of each country where the companies carry out their financial activities.
In this regard, we invite you to read our article How to generate the confidence of foreign investors in Venezuela? Where you can learn more about the impact of these programs on a company's reputation.
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