Why should you have a compliance program? The Legal Case
In a prior edition we discussed the Business Case for having a Compliance and Ethics (“C&E”) program. Here we review the Legal Case. The legal case for having an effective C&E program is often what causes companies to initiate C&E programs. The are several pieces to this. Legal requirements In certain risk areas and/or industries the C&E elements may be legally required. Where C&E elements are mandated, not having them can itself be a legal violation, with a range of penalties, including disruptive and expensive investigations, fines, and even prison. These requirements can be highly detailed, such as those seen in the finance sector dealing with risks like anti-money laundering. There are also requirements related to specific risks that apply across all industries, such as required harassment training. In the US, for example, this may be imposed at the state or municipal level. Mandated programs can seem to those in government as...