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Best Practices

How To Build a Compliance Culture in Your Organization

In general, a compliance culture will help you avoid costly pitfalls like having to rebuild a product or service offering due to legal issues or negative publicity; it will also lower the risk of lost trust and lawsuits, which can be game-ending.

By Lana Shneydina | July 15, 2022 at 03:46 PM
Stock illustration: Compliance checklist. Credit: Tierney/Adobe Stock

I see it all the time. A business—whether early-stage or more established—makes a legal misstep or a series of missteps, perhaps related to its product or perhaps as a result of claims or communications with customers. Then it has to call in legal experts to deal with the regulatory ramifications and other fallout. In such situations, corporate leaders wish they’d had a better up-front understanding of the regulatory environment. They learn the nuances eventually, but at a steep cost.

This common scenario highlights the importance of creating a compliance culture in your organization, especially if you operate in a highly regulated environment.

A thoughtful compliance culture helps managers and employees understand the relevant regulatory frameworks and requirements, develop best practices for complying with them, and build compliance considerations into all the company’s processes—from product development to marketing, and from customer communications to operations. It also helps an organization work effectively with customers, partners, and other stakeholders.

 

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