# Compliance must be cultural: Why compliance is everyone’s responsibility Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-08 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Why Compliance Should Be a Top Priority for your Business Meta Description: Discover the importance of prioritising compliance in business operations to safeguard reputation and minimize risks in today's regulatory environment. URL: https://financedigest.com/compliance-must-be-cultural-why-compliance-is-everyones-responsibilityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img9130-2271-1736843696975-compressed.jpg) _By **Louis Sapirman**, Chief Compliance Officer, Dun & Bradstreet_ Warren Buffett once said, “Everyone must be his own compliance officer. That means everything you do can be put on the front page of the newspaper, and there will be nothing that cannot stand up to scrutiny.” We are living in an age in which the spectre of regulation hangs over businesses, along with the threat of any misstep or oversight being exposed in the media. From the Panama papers to scandals at major banks and multinationals, there have been numerous compliance breaches in the headlines over the past several years that exemplify the impact non-compliance can have on a business’s reputation and [bottom line](https://www.financedigest.com/how-high-performers-can-increase-a-bottom-line.html "How high performers can increase a bottom line"). With that in mind, it seems counter intuitive that compliance is often not prioritised by the C-suite.Compliance teams are fundamental to upholding good practice and protecting the reputation of a business, and they require more than a passive relationship with [C-level executives; they should always have a seat at the table](https://www.financedigest.com/zivver-expands-leadership-team-names-three-new-c-level-executives-2.html "Zivver Expands Leadership Team, Names Three New C-level Executives"). Compliance in an organisation represents the height of operational excellence, and is most successful when owned by all employees.  Thus, it is an [integral element of an organisation’s culture](https://www.financedigest.com/ma-integration-challenges-cultural-alignment-and-change-management.html "M&A Integration Challenges: Cultural Alignment and Change Management"). **From police to partner** Under the traditional view, compliance is sometimes seen as an inconvenience that delays customer on-boarding and revenue-generating activity, or worse, an arbitrary [block on a crucial deal](https://www.financedigest.com/eu-wants-to-know-if-microsoft-will-block-rivals-after-activision-deal.html "EU wants to know if Microsoft will block rivals after Activision deal"). Compliance teams develop new policies and enforce them to ensure adherence with law and regulation – and while this is a fundamental requirement for any business, it is often the compliance team which is seen as a police force, rather than a valued partner that is essential to [business growth](https://www.financedigest.com/euro-zone-business-growth-slowed-in-may-as-factories-struggled-pmi.html "Euro zone business growth slowed in May as factories struggled-PMI"). Placing the responsibility for doing the right thing solely on the compliance team is never an effective approach.Best practice approaches involve the C-suite building compliance into the fabric of their organisational culture. Employees are often the first [line of defence](https://www.financedigest.com/merchants-are-the-first-line-of-defence-against-fraud-heres-how-we-can-help-them.html "Merchants are the first line of defence against fraud: here’s how we can help them"), and ensuring everyone is aware of their responsibilities is vital; after all, one small mistake can result in far-reaching financial and reputational damage, as well as individual liability. If every employee is aware of their personal responsibilities and the [importance of compliance to the success of the business](https://www.financedigest.com/the-importance-of-intuition-in-business.html "The Importance of Intuition in Business ") as a whole, risks can be substantially mitigated. When employees understand that compliance is part of an organisation’s DNA, the value can extend well [beyond simply complying with policies and regulations](https://www.financedigest.com/the-crop-growth-regulators-market-to-grow-beyond-the-odds-of-mediocrity.html "The Crop Growth Regulators Market To Grow Beyond The Odds Of Mediocrity"). Employees will begin to consistently consider the impact of the actions on all of the organisation’s constituents: customers, other employees, third parties and shareholders. The dynamic between compliance teams and the wider business must morph.The ideal of a compliant enterprise is possible to achieve and maintain when employees feel informed, as well as empowered to call the right people for help and advice. Instead of being identified as the team to [fix issues](https://www.financedigest.com/u-s-france-agreed-to-fix-u-s-subsidies-issues-says-macron.html "U.S., France agreed to “fix” U.S. subsidies issues, says Macron") once they’ve occurred, the compliance team’s role must adapt to become an essential and proactive partner rather than a ‘police officer’. **Changing the compliance culture** Taking a strategic approach to compliance and aligning it with the business’s priorities is an [important step](https://www.financedigest.com/eu-u-s-step-up-russian-aluminium-nickel-imports-since-ukraine-war.html "EU, U.S. step up Russian aluminium, nickel imports since Ukraine war") toward cultural change. Through a data-led, risk-based approach, compliance teams can establish themselves as strategic business partners. Instead of being seen as a hindrance, compliance teams have the opportunity to both protect the business and minimise delays to the realisation of new business opportunities. Having a thorough understanding of [business strategies](https://www.financedigest.com/fx-hedging-strategies-to-protect-your-business.html "FX hedging strategies to protect your business") and priorities is key to building successful internal relationships. Access to the [latest technology](https://www.financedigest.com/financial-technology-fintech-how-to-navigate-the-latest-trends-and-innovations.html "Financial Technology (FinTech): How to Navigate the Latest Trends and Innovations") and robust data will only enhance a compliance team’s potential return on investment. Putting compliance at the centre of the business can foster proactive relationship-building. While ultimate responsibility for compliance sits with board-level executives, the compliance team must be [positioned to understand the priorities of all employees and develop processes that support growth](https://www.financedigest.com/agriculture-container-and-tank-cleaning-equipment-market-witness-positive-growth-outlook-during-forecast-2028.html "Agriculture Container And Tank Cleaning Equipment Market Witness Positive Growth Outlook During Forecast 2028") rather than stifle it. Similarly, employees should view the compliance team as a valued partner, reviewing practices and making positive suggestions. This [builds trust and reinforces the fact](https://www.financedigest.com/increase-in-investments-in-building-refurbishment-and-new-construction-activities-to-propel-demand-of-construction-safety-net-market-fact-mr-report.html "Increase in Investments in Building Refurbishment and New Construction Activities to Propel Demand of Construction Safety Net Market: Fact.MR Report") that ultimately the compliance professionals are on the same team with the business and is working toward the same goals. [Digital media](https://www.financedigest.com/smart-becomes-the-first-ssp-to-collaborate-with-white-bullet-to-safeguard-quality-in-the-digital-media-landscape.html "Smart becomes the first SSP to collaborate with White Bullet to safeguard quality in the digital media landscape"), such as internal blogs, social media tools and instant messenger services, are excellent tools for maintaining communication with the business and sharing best practices –although there is no substitute for getting away from your desk and meeting your employees face-to-face. Building a personal dynamic by getting involved and [sharing tips across internal networks](https://www.financedigest.com/exclusive-with-eye-on-big-tech-energy-crisis-eu-telcos-call-for-shared-network-costs.html "Exclusive-With eye on Big Tech, energy crisis, EU telcos call for shared network costs") can not only reduce the likelihood of breaches, but increase the likelihood that matters are consistently reported internally and investigations will run smoothly. **Conclusion** It’s well understood by most employees that organisations have a legal responsibility to comply with regulations in the areas they operate. But beyond this, there can be a sense of pride in doing the right [thing and being a responsible business:](https://www.financedigest.com/taking-the-leap-at-50-five-things-i-learnt-from-starting-my-own-business-at-50.html "Taking the leap at 50 – Five things I learnt from starting my own business at 50") compliance can and should be a core part of an organisation’s culture. This can be achieved through education and regular training, as well as a clear commitment from leadership at all levels. In an age of increasing regulation, businesses need to be compliant from the ground up. Having smart, compliance-led practices that all employees believe in is a key enabler to ensure regulatory requirements are met. It is vital that compliance and doing the right thing is owned by all employees as their responsibility.  The compliance [team must be viewed as expert](https://www.financedigest.com/white-bullet-expands-emea-team-with-the-appointment-of-anti-piracy-and-brand-safety-experts.html "White Bullet expands EMEA team with the appointment of anti-piracy and brand safety experts") business partners, to support the organisation whenever questions arise. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---