Interview with Blandine CORDIER-PALASSE, Lefebvre Dalloz Compétences
How can compliance be taken into account in corporate governance? Why has it become essential? Blandine Cordier-Palasse, Chairman of BCP Partners and co-founder of the Cercle de la Compliance, looks at the importance of governance in implementing corporate compliance processes.
How is compliance not just a regulatory issue, but also a business issue for companies?
Compliance refers to all the processes used to ensure that companies comply with the standards and regulations to which they are subject. Compliance also refers to ethical values and self-imposed decisions. It is a reflection of the company's culture. It is also a reflection of the way in which it conceives and conducts its business and, as a result, has an impact on its business. It is therefore a business issue.
How has this evolved, particularly in the light of the current health and economic context?
In France, regulations have undergone a number of changes in recent years. The Sapin II law of December 2016 required groups above a certain turnover and employee threshold to set up compliance and corruption prevention programmes. This paved the way for compliance to be taken into account in a more global way: duty of care, General Data Protection Regulation, etc. The tightening of regulations and controls has led to a massive increase in awareness among managers. Compliance is no longer an option.
In the wake of the health crisis, many companies have realised that these issues can be a competitive advantage over their competitors. They are using their compliance programme as a differentiating factor. Today, we are seeing a desire on the part of many companies to strengthen their compliance teams. They are also planning to integrate compliance more and more upstream into the decision-making process. Similarly, governance bodies are placing greater emphasis on the need for a robust compliance programme. They want to ensure that communication channels allow information to circulate at all levels. They are becoming increasingly involved in risk and compliance issues.
How is governance a pillar of a company's compliance strategy?
The governance bodies define the company's strategy, and the management bodies execute it. It is they who decide whether or not compliance issues are tolerated. That's why we place so much emphasis on the importance of 'tone from the top'. The impetus must come from the top. The compliance officer must be a high-level manager, ideally reporting to a member of the Executive Committee.
In practical terms, what does this mean in terms of compliance management? What shortcomings have you observed?
Companies must be supported by a Chief Compliance Officer. This person must have sufficient human and financial resources to set up, deploy and monitor the compliance programme at all levels of the organisation, at head office and in the subsidiaries. The pitfall to avoid is entrusting compliance to an employee who has no visibility within the organisation, no reporting line to senior management - and therefore no legitimacy or credibility to build and deploy a solid, global and holistic programme, take positions on sensitive situations, and monitor the effectiveness of this programme.
What recommendations would you give to management to ensure that governance and compliance work together effectively?
First and foremost, efficient corporate governance is essential. Listed groups in particular are becoming increasingly concerned about this. They call on experts like us to help them evaluate and improve their boards of directors. Secondly, we need to have a transparent and effective internal communications policy. The aim is for the various bodies and functions to be able to inform each other and act quickly, and agility is also important. Finally, companies need to surround themselves with experts to set up an effective Compliance department. That's why, when we recruit, we attach as much importance to candidates' interpersonal skills as to their competencies and know-how. We are able to assess them to ensure that they match the client's needs and culture, so as to ensure the success of the compliance policy and the long-term future of the company.
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