The "rule compliance" underpinning the concept of compliance addresses the risks of regulatory sanctions, damage to company reputation, legal issues, financial losses, and many other factors.
The corporate concept of compliance goes hand in hand with auditing, given the meaning of "compliance with rules", whether internal or external, legal or corporate guidelines, aimed at establishing and overseeing their adherence.
Compliance also identifies failures, challenges, and proposes solutions for what is wrong. In other words, for any non-compliance or process deviation, compliance can and must design methodologies that promote transparent practices that will assist during audit periods.
The term, like many in the corporate world, originates from English, meaning internal rule or instruction – to comply.
In general, compliance aims to ensure adherence to corporate culture by applying feasible rules to the business, always remembering to consider internal and external factors.
Compliance in the procurement department
Those who work with compliance understand the importance of adhering to rules to effectively integrate process control and internal information security measures.
Every business has an operational risk policy that, managed through internal controls for damage prevention, manages and reduces the organization's potential exposure.
Good governance practices ensure adherence to conduct and process transparency. This scenario includes national standards, such as the guidelines of Law No. 12,846/13, and international standards, as well as commitments established in codes and standards, whether technical, conduct-related, or internal policies.
Serving as the link between company and supplier, the procurement department establishes itself as the foundation for the supply chain; therefore, it must act within compliance by defining processes and criteria right from the onboarding of suppliers and partners. That said, other key points regarding the compliance-procurement relationship include:
- Monitoring contracts as a best practice to ensure compliance with all clauses and reduce the risks of unlawful situations or fraud;
- Creating partnerships that benefit both parties to foster a healthy relationship;
- Seeking means and processes to meet the expectations of all stakeholders;
- Establishing security and transparency methods in negotiations through contracts based on codes of ethics;
- Developing actions that prevent irregular practices;
- Investigating reports and taking corrective action.
In general, the strategies used in corporate compliance programs vary according to the business and industry sector. However, some best practices are common and recommended across various segments. For example:
- Implementing E-sourcing;
- Formalizing and distributing a code of ethics;
- Establishing and disseminating a code of conduct;
- Conducting training and audits (internal and external);
- Systematizing and creating automation processes within the procurement department;
- Promoting the monitoring of negotiations, transactions, and other processes.
Staying attuned to legislative changes is another key point in meeting requirements and updating processes as needed to incorporate legal amendments.
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