Regulatory Complience Assignment

I would like to start by defining compliance as defined by Cindy Morrison ( Forbes, 2019) “ compliance is
the act of conforming to company policies and procedures as required by laws and regulations.” This
means compliance with laws and regulations and can be seen in a broader picture of compliance to laws
and regulations which govern a business/ different sectors within co-operations and agencies and even
a country as a whole. While Regulatory compliance can be defined as the goal that organizations aspire
to achieve in their efforts to ensure that they are aware of and take steps to comply with relevant laws,
policies, and regulations (Wikipedia, 2020). It is evident that compliance plays a major role in ensuring an
organization and the people who work or form part of the organization follow the rules and regulations
as required. It is therefore part of every manager’s job to ensure compliance. Compliance software is
increasingly being implemented to help companies manage their compliance data more effectively.
Although all departments within a company will overlap, compliance should be tailored to target the
individual functions of each department ( Grimm, 2018). Many organizations struggle to see compliance
as a function that can add value. For them, it is not part of strategic and operational discussions at senior
levels (Nicolosi et al ,2017). This could probably be the major cause of white collar cases that come up in
many of these big companies we read about today.
Compliance in the United States basically means adhering to the laws and regulations. Non-compliance
to laws and regulations have both civil and criminal penalties as described in the lecture notes.
(Bagley,2006) lists several top organizations that have been found guilty of non-compliance and thus
given fines that needed to be paid or even sentenced to prison time. An example includes the sentencing
of the founder and former CEO of ImClone Systems to more than seven years in prison, for insider
trading. A study showed that firms with three or more convictions are more likely to act illegally than a
firm with just one conviction.
According to Paine (2004) the best way to ensure legal compliance is to promote organizational integrity.
Every company should develop a code of ethics that defines the companies guiding values, aspirations
and patterns of conduct (Bagley , 2006) These should be in line with the laws and regulations of the
company. Ethics can be defined as going beyond what the law requires. It involves doing the right thing
and following both the spirit and not just the letter of the law(Tate, Forbes 2019). The code of ethics
should clearly state that violation can lead to sanctions or even employment termination in severe cases.
Through this, It is evident that it is significant to adhere to regulatory requirements to avoid non-
compliance and there are various ways of doing so. For one, Organizations can implement strategic
compliance management programs to avoid or better manage non-compliance ( Bagley, 2006). An
organization can also have a compliance officer as a risk function leader and various compliance
programs can be made to fit the organization’s needs in managing risks (Hamilton et al 2018). An
organization having a compliance program would serve as a guidance book to ensure compliant strategic
initiatives (Grimm,2018). Healthcare Compliance programs in the United States are not new but have
been officially recommended since the Office of Inspector General (OIG) of the US Department of Health
and Human Services published its compliance program guidance (Federal Register 1998). This guidance
has an effective compliance and ethics program. Compliance should be part of a companies daily
activities. This is also to ensure that a particular way and standard of work is maintained at all times and
so that any deviation is immediately noticed. This can also significantly avoid non-compliance. Another
good way to ensure compliance communications are effective, is to make sure that staff feel comfortable
reporting perceived issues (Grimm, 2018). It is fair to conclude that adhering to regulatory laws protect
the customers from any harmful consequences that could occur, it also protects the firm from tarnishing
its own reputation and also helps senior ,management and leadership avoid criminal liability.
In conclusion, adhering to regulatory requirements is important for several reasons as it has legal and
ethical obligations as discussed above. It can also prevent financial, operational and reputational risks.
Adhering to regulatory requirements helps avoid these risks. It also protects the end user, ensuing the
safety and quality of the services or products. Regulatory compliance is important to safeguard sentitive
information. Adhering to regulatory standards also ensures that a positive reputation is maintained at a
global level.
References
Bagley, C. (2006) Strategic Compliance Management [Harvard Business School].
Grimm, D regulatory compliance overview’ (2012) Food Safety Regulatory Compliance, pp. 62–81.
doi:10.1201/b12898-6.
Hamilton, Julie and Sauders, Kelly J (2018) how systematic compliance practices can address regulatory
and risk issues in healthcare, 34.
Jesus, H.M. (2018) Regulations, Rules and Laws: Leading Through the Changes, 34.

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I would like to start by defining compliance as defined by Cindy Morrison ( Forbes, 2019) “ compliance is

Bagley, C. (2006) Strategic Compliance Management [Harvard Business School].

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