By Blandine CORDIER-PALASSE, Journal du Management Juridique n°82 p.69
The health and economic crisis has only served to reinforce the social and societal responsibility of companies.
As part of our work, we interviewed CEOs and chairmen of boards of directors, audit committees, ethics and CSR committees of various sizes and in various sectors about the role of governance bodies in corporate compliance. They are unanimous in affirming that compliance has become a governance issue. The cultural transformation of their company depends first and foremost on their own transformation.
The aim of the governance bodies is to ensure that the company achieves solid growth in both the short and long term.
We know that the Board of Directors determines strategy. It also provides management with the resources to implement it.
Consulting therefore plays an essential role in the prevention, detection and understanding of risks. It plays a key role in defining and deploying the company's culture, ethics and values at all levels. We all remember the Uber director who had to resign after making a sexist remark. This enabled the company to rebuild its image and reputation.
Through their dual role of guidance and control, the directors have not only the power, but above all the duty to ensure, in particular with the technical support of specialist committees such as the Audit Committee, that the various compliance measures to be implemented by operational management are designed and effective.
This can be seen in the recruitment we carry out for groups not only in regulated sectors, but also in the following areas
in other sectors. One of the keys to implementing such a change is the appointment of a Chief Compliance Officer. The Chief Compliance Officer has the operational experience needed to take on the role of orchestral conductor. He or she plays the part of Comex, whose tempo is set by the Board of Directors.
The group compliance officer can thus help to demonstrate that the risks of non-compliance have been identified and controlled. He can also demonstrate that the programme is robust and efficient. His role is to inform stakeholders of the measures taken by the company. The aim is to prevent and detect failures, offences or risks of offences. It can also bear witness to the fact that the culture of ethics and compliance has become a value that is embraced and exemplified.
As Philippe Montigny points out, senior executives are increasingly aware that introducing compliance issues into the work of the Board and the Executive Committee/Chairmen means protecting the company from heavy penalties that could affect its profitability. Above all, it means providing the means to build sustainable competitiveness based on a constant drive for innovation and rapid response to market expectations.
We are recruiting compliance officers who understand the business and the workings of the company. They know how to interact cross-functionally with all operational and functional departments to assess operational, legal, financial and non-financial risks.
These very solid group compliance officers also have the courage to bring a pragmatic and critical perspective to the governance bodies. These lively and challenging discussions enable them to reflect on strategy, confirming or redirecting it in line with future legislative, regulatory and international standards developments that could have an impact on the business, while taking into account the expectations of stakeholders. In this way, they can anticipate the changes or even disruptions required. This enables them to stay one step ahead of competitors, markets and stakeholder expectations.
Bridges between corporate culture, values and vision
The Board must therefore define a governance charter. It must agree on common values and visions. The Board is responsible for choosing the strategy, but also the leaders capable of implementing it.
How do you rise to such a challenge?
By building bridges and encouraging ongoing, global, cross-functional, matrix-based, intercultural and interdisciplinary cooperation. It's time to combine compliance and culture. It's a less obvious combination, but one that is essential to good governance and the long-term future of the organisation. Added to this is the feeling of belonging, and the creation of value. Nurturing a strong relationship between compliance officers and the board of directors enables them to play their role in protecting the company. It also enables them to give meaning to their actions and reassure stakeholders.
The result is an organisation that is more solid, more agile in meeting challenges and winning in a changing world. The aim is to preserve its image and reputation, and therefore its competitiveness, value and attractiveness.
