Basic introduction

Compliance is the cornerstone of the sustainable development of an organization. In recent years, the international community and governments have been committed to establishing and maintaining an open, transparent and fair social order. At the same time, China comprehensively promotes the rule of law. In this context, organizations pay more and more attention to the compliance risks they face and how to achieve compliance. Compliance means that the organization has complied with applicable laws, regulations and regulatory provisions, as well as relevant standards, contracts, effective governance principles or ethical codes. In case of non-compliance, the organization may be subject to legal sanctions, regulatory penalties, major property losses and reputation losses, and the resulting risks are both compliance risks.

In modern enterprise management, compliance management is considered to be one of the three pillars of enterprise management, which keeps pace with business management and financial management. Different from the other two kinds of management, compliance management tells the enterprise how to do it in the specific operation process, how to do it reasonably, how to do it in compliance with the law, and how to do it legally.

GB / T35770-2017 (ISO 19600:2014, IDT) "Compliance management systems - Guidelines" is the first compliance management system standard in China, which can guide enterprises to establish, implement, evaluate, improve and standardize the management system, so as to achieve effective response and control of risks.

In recent years, the international community and governments have been committed to establishing and maintaining an open, transparent and fair social order. Many laws and regulations have been issued and revised, and new laws and regulations are issuedalmostevery week. At the same time, punishing the violation of laws has become an important means of big countries’game and worldwide competitiveness; Some countries aim to hit their competitors' economies by enacting laws and selectively enforcing laws against some pillars or important enterprises in their competitors' countries.Coupled with hundreds of millions of dollars, billions of dollars or even tens of billions of dollars in fines, compliance is not only a matter of economic and reputation damage, but also the key to the survival of enterprises. Enterprises urgently need to establish an effective compliance management system to prevent compliance risks.

Standard features

1. The guide can be used to guide the organization that has not carried out the compliance management to determine, operate, evaluate and improve the compliance management system, and can also provide guidance for the organization that has established the compliance management system to improve the compliance management.

2. The establishment of an effective compliance management system can not eliminate the occurrence of violations, but can reduce the risk of violations.

3. In many countries or regions, when violations occur, the organization and its managers take the effective compliance management system established and implemented by the organization as a defense to reduce or even exempt the administrative, criminal or civil liability. This defense may be accepted by the administrative law enforcement or judicial authorities. This is particularly important for Chinese enterprises to develop both at home and abroad.

4. Compliance management is regarded as one of the three pillars of enterprise management, which is in parallel with business management and financial management. Financial management provides financial support for the decision-making of the next reporting cycle by reviewing the three major statements of the enterprise and telling the enterprise what to do. Compliance management is different. Compliance management aims to tell enterprises what to do in the specific operation process, how to do it reasonably, how to do it in compliance, and how to do it legally. For listed companies, compliance management is more important, because listed companies must adhere to the principle of openness and justice according to law, fairness and justice is bound to be inseparable from the compliance management of related matters.

Significance of implementation

1. May get bonus points in some international and domestic bidding procurement.

2. Prove to shareholders, management, customers and employees the seriousness and management level of the enterprise towards compliance.

3. When investigated by the government, provide evidence that the enterprise has taken reasonable measures to prevent violations (more effective when investigating foreign governments).