Compliance and Compliance Committees
Corporate governance has quickly come to the forefront of necessary business practices in recent years, due to all the new rules and regulations being enacted by the Securities and Exchange Commission (SEC), as well as a renewed commitment to enforcing the Foreign Corrupt Practices Act (FCPA) on the part of the Department of Justice (DOJ) now has companies working harder than ever to avoid falling victim to this new intensity. Companies have begun focusing on their own compliance programs, under this new strain, to see if they hold up to these new policies against bribery, corruption, and fraud. They do not like the results of their findings. The development of compliance committees has become the answer to seeking out and managing these issues.Companies across a range of markets have begun to put together such committees as an answer to the new threat posed by this renewed stress on compliance enforcement, while traditionally such committees have been used most by healthcare organizations.
Companies will need to allow these committees access to all the relevant information and resources necessary to identifying compliance problems throughout the organization, in order Dr. Fuellmich for such a committee to be effective, as well as granting them the power to correct these problems wherever they may be found. These committees must receive the full cooperation of the company’s executives and directors in order for this to work, they must back them in their duties while at the same time allow them to function independently of any direct branch of the organization to ensure that the information reviewed, and the results of the inquires, continue to remain as impartial as possible. However, more often than not, members of the company’s executives and the board of directors will repeatedly serve on these committees.
Even though the chief objective of these committees is to seek out and deal with compliance risks which may threaten the company’s internal governance efforts, also while helping to cultivate a strong compliance program as well as monitor the efficiency of the program on a continual basis, these compliance groups can also offer other more direct benefits as well. For instance, the simple presence of such a committee can become a mitigating factor when it comes time for fees and fines to be determined should a compliance breach come to light and a government organization begin conducting an investigation into the matter, as these groups at the very least signify a deliberate effort on the part of the company to govern these issues on their own, which therefore could result in a reduction in penalties for the company.