What is Corporate Compliance and How Businesses Can Keep Up

Companies often put tasks with no immediate revenue on the back burner. Corporate compliance is one of these seemingly inconsequential operations that every responsible business owner should not overlook. In essence, corporate compliance is the observance of statutory regulations on responsible and lawful conduct by a company, its employees, and its supervisory and management bodies. Whether big or small, all corporations must abide.

The Corporate Compliance Program

To act upon this, every company should implement a compliance program, an internal set of guidelines designed to prevent corporate wrongdoing. These involve any conduct that may one day lead to a civil investigation or criminal prosecution. As part of the regulatory measures, the Securities and Exchange Commission (SEC) requires regular monitoring and reporting of every company’s annual activities, says Triple i Consulting. In addition, the Bureau of Internal Revenue (BIR) and local government require reporting and regular renewal of licenses and certificates.

Role of Outsourced Corporate Support Services

To comply with the barrage of requirements, multi-national corporations and foreign-owned companies will have to slow down the actual business, thus causing a slow-down of profit. Some corporations tend to put it in the backend of their operation, which can give rise to a number of legal risks and penalties. This is where outsourced corporate housekeeping plays an important role. These firms provide legal and support services that relieve businesses of the burden of overseeing corporate compliance so owners can focus on the business. Their services can include providing a corporate secretary, a corporate treasurer and filings with the SEC, BIR and Local Government. These departments have all the necessary intelligence to comply with the bureaucratic procedures, with a quality management system equipped to complete all required filings. In other words, the purpose of these outsourced support providers is to simplify a corporation’s operations, enabling them to maintain an undivided attention on the growth of the business. After all, big or small, all corporations must make money, while complying with the law.