Importance of Compliance & Corporate Governance

When it comes to the corporate world, good governance is a very important aspect of the business. There has been a dramatic shift in cultural norms and expectations over the last few decades when it comes to doing business in a morally sound manner. Shareholders and other stakeholders have grown more conscious of their rights and aware that they can use technology and other mediums to ascertain the legitimacy of any organization’s corporate policies and functions. It is very crucial for executives and others who are put in charge of running an organization to be mindful of the compliance laws as well as keep up with any new changes in them if they are aiming to improve their company’s reputation.

Corporate Governance is a system of practices, processes, and structures which ensure that an organization is being directed, managed, and controlled in a respectable way. It encompasses the rules and regulations that organizations make to describe the ways of doing business. In other words, corporate governance is a set of principles according to which the organization is running its business.

What is Corporate Governance

A textbook definition of corporate governance can only convey so much about the idea. The concept is still very much in practice, and in fact, it is at its peak of importance today considering the economic and social changes that are taking place all around us. But an organization's corporate governance model is a combination of different theories and this theory needs to be practiced carefully to ensure that the employees know their responsibilities towards the organization and that their individual tasks will contribute to an overall goal.

What is Compliance

Executive Management needs to understand how the management system works and how you can monitor it based upon regular self-assessments, external audits, and reviews. They need to know that you’re being transparent about the investment compliance monitoring risks and how to keep them under control. They should also be aware of the fact that the management system is actually working effectively and has the resources needed for accomplishing organizational goals. The benefit is not seeing if there are some compliance issues, but if there is a systematic approach for addressing those.

It is important to note that in some cases, the scope of compliance can have legal implications for the business. For example, if a business requires customers to opt-in to receive marketing communication, it must follow this practice to conform with the CAN-SPAM Act. Thus, non-compliance can result in fines and penalties imposed by regulatory bodies like justice departments and attorneys general.

A stakeholder is an individual, group or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives and policies. The primary goal of(practice) is to increase long-term profits as well as the value of the firm to all its stakeholders (stakeholder management).

Last weekend, the shopping mall sweltered under a tropical heat wave. I wanted to buy some new clothes for summer. I went to several clothing stores and looked at their products. Although the air-conditioners were in full blast, I did not feel any cold air coming out of them.

As a key stakeholder of the Business Processes and Compliance Team, I am responsible for ensuring that all processes followed by my team (Billing Procurement Department) are up to date and in agreement with the compliance rules as defined by our company.

Most algorithms, such as binary search, can be characterized by two or three sentences that state the algorithm's basic properties. These properties are what we want to capture in our analysis: 'Binary search is efficient on sorted arrays' and 'Insertion sort is stable' are examples of the kinds of ideas we would like to characterize and analyze. We present a notation, called big O notation, that makes this precise.

Process mapping is a great way to gain a clear understanding of how various processes take place and how they relate to each other. If a business wants to avoid bottlenecks and make the most out of the resources that it has, it needs to have a clear understanding of the business processes at hand.