The essence and characteristics of compliance: definition, functions, goals, ethical foundations, place in the organizational structure of the enterprise

Abstract

Introduction. The paper examines compliance as an integral part of the organization that ensures compliance with internal and external rules and norms in it, as well as the place of compliance, its functions and goals in the enterprise. The importance of understanding the essence and ensuring the functioning of compliance at the enterprise and ways of preventing and detecting its violations, the ethical foundations of compliance and its place in the structure of the enterprise are studied. The experience and history of the development of compliance are considered on the example of real situations with international companies and the influence of these situations on the formation of the system of introducing compliance in organizations. The purpose of the paper is to consider and describe compliance as one of the functional components during the organization's activities, as well as to provide a description of its definition, functions, goals, ethical foundations and place in the organizational structure. Results. Compliance in the general sense is a set of processes that ensure compliance with internal rules of conduct in the organization, as well as external rules and regulations. Understanding the essence and making compliance work helps companies prevent and detect violations. If the company uses and attracts resources from other parties – from investors, creditors, donors – it is necessary to be able to assure them that the behavior of employees and compliance with applicable rules and regulations are monitored and supported, and not allowed to flow. Without effective compliance, it is impossible to reliably build or maintain trust with others. Trust develops through three elements: repeated interactions, honest communication, and commitment. Organizations cannot ensure that the second and third elements are fulfilled unless they have adopted rules of good communication and good performance. Compliance focuses on what behavior will and will not be permitted while accomplishing the tasks and objectives. Without a compliance function, decisions are random and made in a vacuum. That is why it is so important to understand the essence of compliance as such and its main indicators. Conclusions. The main practice of implementation of compliance and its development comes from abroad, where the consequences of significant violations led to regulation of compliance at the level of the entire country and had a gradual impact not only on local industries and organizations, but also on the geographical expansion of regulatory means. At domestic enterprises, if compliance exists in certain general rules and regulations, in many cases it still does not have an official status and regulations that would regulate and determine its place in the organization. Therefore, the following studies can be devoted to the issue of the development of perception and proper implementation of compliance by Ukrainian companies.