Explain the concept of corporate compliance transparency and how it could benefit a company that embraces it.
Please identify any companies that embrace corporate compliance transparency as well as any success they have realized from embracing corporate compliance transparency.
Let's take a closer look. I also provide two examples.
1. Explain the concept of corporate compliance transparency and how it could benefit a company that embraces it. Please identify any companies that embrace corporate compliance transparency as well as any success they have realized from embracing corporate compliance transparency.
Corporate compliance transparency is about following regulations and embracing transparency at all levels of business and with all stakeholders. It benefits the company through demonstrating the highest levels of integrity and through operating the company in a reliable, efficient, transparent and ethical manner; it enhances a company's performance and reduces business risk. Enhanced performance results in increases in the company's profits. Indeed, the lack of corporate transparency caused today's financial crisis, and also complicates global trade. In the U.S., for example, information disclosure, like financial information, represents the newest wave of regulatory approaches in a variety of sectors, including the environment, workplace safety, food safety, and finance (http://www.erb.umich.edu/News-and-Events/news-events-docs/DC_DisclosureConferenceAnnouncement.pdf).
Historically, government compliance and transparency regulations took center seat, as well as the public's perception of corporate ethics changed dramatically changed with the word of the unethical decision-making at WorldCom and Enron. These financial scandals eroded consumers' confidence and portfolios, and undermined their faith in the accounting profession. Corporate stakeholders have called for more transparent financial reporting and evidence of better ethical conduct. SEC Chairman William H. Donaldson has said that restoring the public's confidence in the accounting profession was the Sarbanes-Oxley Act's (SOA) primary goal. Part of restoring the public's confidence entails auditors and auditees adopting best practices, including transparency. One example of a "best practice" in transparency is a corporation making its code of ethics readily available for public scrutiny on its website.(http://www.nysscpa.org/cpajournal/2005/405/essentials/p34.htm)
Corporatee compliance transparency has both a legal and ethic components, so embracing it means that the company will avoid legal sanctions as well. "Congress' subsequently enacted the Sarbanes-Oxley Act and corporate law's humbled stature in (minimally) responding to the massive financial frauds of '01-'02" (Stevelman, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1447404).
One example to consider is Bayer's, who has benefited in better performance and reducing risks through embracing Corporate Compliance transparency by doing the following:
1. The company provides employees with access to all the necessary information resources and counsel to prevent violations of the law or company regulations.
2. Every supervisor must organize his or her area of responsibility so as to ensure adherence to company rules and applicable law and ...
Through discussion and example, this solution explains the concept of corporate compliance transparency and how it could benefit a company that embraces it.