Managing regulatory challenges in a Global Marketplace obviously makes one think of more headaches and more work; anxiety for the unknown, complexities around it, the fear of recall, penalties and prosecutions.
The Author resonances that Compliances are the partner to Business Excellence.
Compliance is an integral part of strategic business decision making the Company potent, distinctive with added advantages as compared to its Competitors.
With globalization and diverse investment infusing into the Indian economy, the compliance of the international norms irrespective of local relaxations echoes the strong preferences to the Companies adhering to the compliance mantra.
Recalls – be it Nestlé’s Maggi, Volkswagen cars or the Satyam’s fiasco all leads to loss of brand reputation & goodwill coupled with fines and penalties and loss of consumer bases, built over several years of excellence and perseverance.
To touch upon the most basis example, consumer will be hesitant to drink coloured water or a sugar candy. If the same coloured water or a sugar candy is Pepsi and Perfetti, the consumer will consume it confidently. While at the 1st instance it draws the inference that confides originates from the “brand value” but in principle it goes back to the basic to mean the series of consistent compliances which has enabled the brand to build a platform of comfort, confidence and reassurance in the minds of vast consumer base.
To see the perspective differently, the entire ‘Reputation Index’ and the ‘Employee Engagement’, which has become one of the most important aspects in the Corporate World, will erode its credibility with just one or two article in the newspaper on non-compliance. Thus, can then it be said that the Compliance is required only by Law ……..
To live with the compliance, the expression “GRC” [Governance Risk and Compliance] has to be relooked as “GLC” – “Governance Leadership and Culture”.
The Leadership of the organization will have to live and reinstate the Culture……. a culture of philosophies, values and principles. It is this culture [be it the Code of conduct or the Code of Values or the different name] which will thrive the success path. A well written quote, though by an unknown author
“When men are pure, laws are useless; when men are corrupt, laws are broken.”
It will be this culture, which will strengthen the concept of Public Private Partnership [PPP] creating way for the Self Regulations than the regulatory framework.
Conclusion- The paradigm shift with leadership enabling the culture and philosophy of compliance with an approach of collaborating with the business will open the sea of opportunities, rebuild confidence, strengthen brands and core values where Compliance will be seen as the Partner in Business Excellence.