Corporate compliance programs — Who needs them?

Abstract

In today's fast paced and ultra-competitive environment, businesses in the aerospace and defense industry may be tempted to cut corners in order to gain a leg up on their competition. Corporate compliance programs help ensure that companies are complying with federal laws and regulations and employees are complying with corporate policies and procedures. Companies in the aerospace and defense industry have a legal obligation to create and maintain a compliance program, as required by certain laws and regulations. In addition to legal obligations, companies also have a moral obligation to promote organizational integrity, which can best be done through the operation of an effective compliance program. This paper outlines the laws and regulations that require companies in the aerospace and defense industry to implement compliance programs, companies' moral obligations for doing so, and some best practices for implementing them.