Risk of compliance arises when a company is exposed to legal penalties, financial forfeitures and material losses. It happens when an organization fails to proceed in accordance with industrial laws and regulations. The best policies prescribed for practicing the internal affairs are also not complied with.
Social Media suggests that the most qualitative assets that a company possesses are its goodwill and trust of stakeholders. Through establishment of an ethical working environment, employee engagement and reputation can be enhanced. There are certain norms whose adoption can reduce ethical risks in the affairs of a company:
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Honest assessment of needs and resources:
To start with, a business should first be able to sort out the ethical challenges laid at forefront. Identifying greatest areas of risks and spotting important employees, locations, business units is also important. Important values for company and employees as well as the necessary values for business and work are also needed to be recognized. Determining and identifying beneficial ethics and compliance resources is needed. It is also necessary to spot the groups, whose involvement will make serious contribution in developing the desired code and values. Proper identification of existing strengths and areas of vulnerability will bring out all the difference. While risk assessment is the point of initiation, gap analysis and program assessment would be the next to follow.
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Establishment of a strong foundation:
When the needs are known, the resources can be placed properly in fulfilling those through establishment of a sound ethics and compliance program. When an organization wants to have strong foundation, it should take concern about the key elements too. These include a written standard of ethical workplace conduct through imbibe of proper training, resources that extends counseling about ethics and compliance issues, means to report potential violations. There should be provisions for performance evaluations of ethical conduct and appropriate system to oblige violators. Social Media also offer positive reviews to those environments, where anyone possesses the guts to put the management under query. There will be rewards for complying with ethical standard and positive feedback for ethical conduct should be available. Employees should also be mentally prepared to observe ethical practice.
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Culture of integrity should be instilled from the top level management:
It is believed that most people keep an intrinsic desire for good and ethical performance, though it can also be said that these desires are thoroughly ductile. With perfect designing of an ethical culture by observing all the norms required is sure to bring a success about it. In companies where ethical culture have successfully built up and maintained, employees are committed to do the right thing and work to uphold values and standards. Under such environment, leaders are supposed to lead by way of setting examples. Youtube focuses those companies where senior leaders set the tone and work supervisors work in shaping the everyday environment. Employees are allowed to work and make decision where required. The actions of leaders have serious impact on the conduct of employees.
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Keeping focused values for small and big moments:
Values are foremost considerations in organizations where ethics are given due importance. The corporate values will play their role and these should be reflected in the entire processes of everyday life of the company. The prime areas of focus include implementation of HR policies, reward systems, the process of hiring and retention, management and evaluation of performance and decisions about promotions. Teachable moments that have arisen out of crises are to be spotted seriously. Once the leaders set examples in managing crises, employees are sure to follow that nobility.
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Reassessment of values:
Situations and needs change with time. The business owner must have to be aware about the things that befit the demand of the situation and which are outdated. There should be scopes of constant evaluation of the ethical principles and compliance in an organization. Programs can be made relevant and also risk minimizing with the aid of risk assessments, follow up surveys and periodic and ongoing focus groups. A clear difference in company position can be observed in respect of ethics and compliance when periodical assessment in the said aspects is taken up.