ARTICLE
Aftermath of Ethics Summit : Compliance as a Competitive Advantage Panel Discussions and Summary
Author : Altuğ Özgün
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Ethics & Compliance ( E & C ) in businesses for long time is resonated with risks and penalties associated with risks . Therefore , compliance officers had to fight with prejudices that they have seen as policemen and business blockers . However , times are changing and it ’ s time to reframe ( E & C ) as a competitive advantage for achieving sustainable business objectives . Companies on the international stage are naturally in competition to each other . Ability It is a well-known fact that having a strong compliance program protects companies from legal , financial , and reputational risks . Although corporate compliance programs are often seen as a legal requirement by companies , they are more than meets the eye .
In today ' s world , being a strong company in business ethics and compliance in the eyes of stakeholder chain extending from consumers to investors brings many advantages . In particular , it can be said that all companies that come up with solutions by putting people and human-oriented risks at the center are a few steps ahead of their competitors . The advantages of companies with an effective corporate compliance program can be listed as follows :
Employee Satisfaction : To be able to accommodate qualified and well-equipped talents and to benefit efficiently by keeping the motivation of the labour force , which is one of the most important capitals of companies , is undoubtedly one of the main factors that make a company stand out in its sector . According to many studies , employee satisfaction is directly related to the feelings of trust and sense of justice that the company provides to its employees . In this context , issues such as the effective implementation of the compliance program , the proper functioning of the whistleblowing mechanism , and the implementation of the disciplinary procedure for everyone by conducting an internal investigation process when necessary by the management , directly affect the loyalty and efficiency of the employees to the company . Therefore , by implementing an effective compliance program , it
Access to Corporate Finance : E & C programs not only help to mitigate the risks but also help companies attract new investments through international corporate finance institutions . Both public and non-public companies require investment for sustainable growth and cross-border investments . Banks and international financial institutions require borrowers to abide by certain compliance prerequisites . Accordingly , borrower companies are asked to complete anti-bribery , anti-money laundering , human rights , environmental , corporate governance , and similar types of compliance programs . Having a robust compliance program serves companies to be assessed as eligible companies for corporate finance compliance requirements . Borrower companies are deemed as third parties in their relations with borrower institutions . So , failing to address third-party risks shall result in no-go decisions even if the borrower companies are eligible in terms of financial due diligence .