The demand for compliance activities is increasing in the global market. Compliance is a fundamental requirement underpinning ESG management, and a prerequisite for doing business internationally.
No business wants to learn that the companies that they do business with are being suspected of non-compliance with legal and regulatory requirements. If you are a third party that provides goods or services to businesses, you need to provide assurance to your partners, clients and other parties that you will comply with the relevant legal and regulatory requirements.
The best way of doing so is by implementing a Compliance Management System (CMS) tailored to your organisation, and demonstrating the effectiveness of that implementation through the international best-practice ISO 37301 standard.
ISO 37301 is a management system standard that describes and provides guidelines for the implementation and proper governance of a CMS. ISO 37301 combines ISO standards with guidelines from international agencies including the International Chambers of Commerce, the Organisation for Economic Cooperation and Development and the UN Convention against Corruption, and covers all aspects of compliance, including ethical conduct, corporate governance, risk management, and internal control.
The standard is part of the ISO 37000 family of standards for management systems and can be integrated with other systems that ensure quality, environmental or information security management. A CMS based on ISO 37301 enables companies to address any compliance concerns quickly and effectively and to prevent and detect unethical conduct.
The framework is adaptable, and applies to organisations of different sizes, levels of complexity and operational activities.
Lanel Kotze, governance, risk and compliance manager at Inlexso, comments: “If properly implemented, an ISO 37301 certified CMS can help your organisation identify and manage legal requirements, identify and manage compliance risk more effectively, improve stakeholder trust and confidence, enhance your organisation’s reputation and credibility, streamline compliance-related processes and procedures, and improve overall organisational performance.
“The advantages of a bespoke CMS are substantial, but obtaining its full benefits requires a detailed knowledge of the ISO 37301 approach, sufficient capacity to implement the framework and manage audits and certification, and an objective, impartial view of the organisation.
“CMS, done well, can safeguard any organisation’s reputation and protect it from unnecessary regulatory risk, ultimately making the organisation more sustainable. Businesses that adopt the system stand to gain a competitive advantage and foster stronger relationships with customers, suppliers, and regulators”, Kotze says.
“I would encourage all organisations looking to bolster their regulatory preparedness and reputation, especially if they’re working on an international stage, to find out more about CMS and ISO 37301 and their benefits.”