Corporate compliance: growing more important every day

On Behalf of | Mar 1, 2016 | Business Formation & Planning |

Herald the corporate compliance officer.

If you are of a certain age and a long-time corporate employee, you likely remember the days before office computers, company emails, sophisticated phone systems and other tech enhancements. Those improvements dramatically propelled us from the days of IBM Selectric typewriters and secretaries who hand delivered notes regarding the calls you missed.

And, as they were implemented, a new employee appeared on the scene and began demanding some attention, namely, the company’s technology director.

Although it took some time for that person and position to garner the respect and understanding of corporate principals, the chief IT guru in any company these days unquestionably sits at the table of ultimate power.

And there is now a new actor rising up the ranks of corporate importance in much the same way.

That is the chief compliance officer, who plays the important role of overseeing a company’s efforts to stay firmly aligned with state and federal laws in areas ranging from accounting and tax treatment to environmental considerations and labor law enactments.

That is exacting duty, to be sure, especially given — as noted in a recent article on corporate compliance — “a recommitment by the Department of Justice to vigorously pursue compliance enforcement.”

Regulators are increasingly focused on many things these days, with employee treatment, financial fraud and cybersecurity readiness being high on the list of concerns.

There are many things that company principals in California and elsewhere must think about and develop sound compliance strategies for, with the risks of noncompliance — including fines, criminal penalties and reputational damage — being many and dire.

A proven business law firm with a demonstrated record of assisting clients with compliance-related issues and requirements can help ensure that a business operating in a complex and competitive environment stays on top of what is necessary to conduct its operations lawfully and competitively.

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