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What Is Corporate Compliance?

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Introduction What is corporate compliance? Compliance - The word compliance is defined as the act of adhering to or conforming to a law, rule, demand, or request. In a business environment, conforming to the laws, regulations, rules and policies is a very important part of business operations often referred to as "corporate compliance." Corporate compliance involves keeping a watchful eye on a fast-changing legal and regulatory climate, and making the changes necessary for the business to continue operating in good standing within its industry, community, and customer base. In a broader sense, corporate compliance extends beyond mere legal and regulatory conformity into the realm of promoting organizational ethics and corporate integrity. Effective corporate compliance will cover both internal policies and…show more content…
During those years, the defence department received extraordinary charges for non-compliance of these contracts by the companies. There were continuous investigations, which finally led to a number of criminal convictions and monetary settlements for a large number of companies that provided equipment and supplies to the U.S government under contract. To tackle with this problem of constant legal hindrance the defence industry companies who intended to enter into a contract with the U.S. government were required to develop a corporate compliance program, which would not allow such events to occur in future. Further, to encourage the companies to develop a corporate compliance program the U.S. government established a U.S. sentencing Commission that started charging lenient for corporate violators that were maintaining a corporate compliance program voluntarily. The idea behind the scheme was that of charging companies who are violating the contract knowingly rather than the companies are applying due diligence and proper control to avoid violations to the
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