How can a Board work to incorporate the compliance function into a long-term business strategy of the organization? A Board can do so by engaging with the CCO and compliance function through having a strong Board which is committed to doing business ethically and incompliance with anti-corruption laws and engaging actively with the CCO and compliance function. The questions have become even more important after the release of the 2020 Update. Under the topic, Seniority and Stature, are the following question What role has compliance played in the company’s strategic and operational decisions?
The starting point for a Board of Directors is to develop a framework for incorporating compliance into your long-term strategy. To set up the framework for evaluation of the compliance into your Board’s long-term strategy is a three-step process, which you can use to determine how comprehensive the Board’s role in your compliance program is as a starting point.
The Board should work to communicate the influence of compliance factors on overall corporate strategy by demonstrating how compliance was integrated into the business. Not only is this good from a business perspective and shareholder expectation but it is also, as the 2020 Update makes clear, what the government expects is the operationalization of compliance going forward.
Three key takeaways:
- Having a long-term strategy is critical.
- What is the Board’s framework for assessing compliance?
- Create KPIs to measure senior management’s actions around compliance.
