Compliance as a mechanism for ensuring sustainable development of companies in crisis

Abstract

Today, the world is in conditions of permanent instability due to constantly emerging crises, the beginning of wars, social changes, etc. This has a very negative effect on the activities of companies in various industries, reducing the possibilities of their sustainable development. The consequence of this is the need to use new management models, mechanisms and tools. The purpose of the article is to study the use of compliance and develop an approach to its implementation in the company’s management system. It was determined that the main factors that will determine the sustainable development of the company will be reactions to external influences, the level of efficiency of the company, its financial stability, the intensity of innovative activities and competent management. It is shown that companies in Ukraine make limited use of compliance. The main trends of compliance procedures in companies are the identification and regulation of conflicts of interest, the compliance function has the right of veto in relation to individual decisions, the minimization of compliance risks. The top 3 compliance risks that can lead to both significant financial losses and significant reputational damage include unscrupulous counterparties, conflicts of interest; corruption risks. It was determined that the compliance service should use a toolkit that will include methods of detection, identification and assessment of risks; development of anti-corruption provisions; conducting internal financial investigations and identifying fraudulent activities in the company’s activities, etc. It is proposed to implement compliance in three stages, namely: compliance audit, formalization of the compliance system and its implementation. This will prevent problems related to dissatisfaction and/or resistance of employees to changes in corporate culture and ethics of behavior in the company, increasing requirements in accordance with internal regulations, increasing the volume of work of both individual employees and structural units as a whole.