Enhancing global advantage with corporate compliance

Businesses should not function in isolation; nor can they. Running a successful enterprise requires interaction with different elements in society to provide the right goods or services to end users, and there are laws in place to govern the interactions and operations of a business. Legislation can vary significantly, depending on the sector and geographical location of the business. Organisations must comply with all applicable compliance norms. An area of concern in recent years is climate change; this has forced governments to develop stricter compliance laws to meet sustainable development targets while catering to an increasingly aware and concerned consumer. 

The compliance landscape can become even more complex when you have a global business to run. You have to abide by regulations of multiple government entities, which could be quite overwhelming for business owners to keep tabs on. Failure to do so could ruin a business’s reputation and lead to penalties. 

Using corporate compliance services, a business can save resources and time, and maintain a good reputation.

Understanding global compliance 

Global compliance entails managing an organisation’s regulatory and compliance obligations to the local laws of a country/state. Professional global compliance managers monitor trends and legislation to ensure an organisation complies with all applicable norms.

• Tax and social security compliance 

Many global jurisdictions have tax laws in place for businesses in different sectors. There are social security withholding requirements for employees. Therefore,  managing employee payrolls can be complicated when both domestic and foreign tax laws apply to international employees.

• Immigration laws

Immigration laws regulate how long a foreign employee is allowed to work in a specific country. Work permits from local legal entities are also essential, and the employer (organisation) will be in violation of local law if an employee overstays.

• Employment laws 

Employment laws are designed to safeguard the rights of employees working in an organisation. They focus on the basic entitlements of an employee, including annual leave, minimum wage and maternity/paternity leave. An organisation also needs to abide by foreign employment laws when expanding overseas. 

Consequences of non-compliance 

Compliance with all applicable global laws and regulations governing an enterprise is of utmost importance. The following are some consequences of non-compliance.

• Legal and financial penalties 
• Reputational damage 
• Licence revocation 

Tips for global compliance 

• Review current business practices 

Review company rules in line with the laws of the foreign land. 

• Have a compliance plan in place 

Have a comprehensive compliance plan that lists the responsibilities of each employee. 

• Maintain transparency in communication

All new plans and policies must be communicated transparently with employees, irrespective of their location. Compliance training sessions are also highly recommended.

• Hire a corporate compliance service provider 

They are well versed in international compliance law and regulations and can help save time and resources.