Compliance and Business Ethics Working Group Position Paper 2019/2020

Compliance and Business Ethics Working Group Position Paper 2019/2020 - 合规与商业道德工作组建议书2019/2020 Go back »

Published on:

2019-09-24
Category:

Position Paper
by:

Compliance and Business Ethics Working Group / Forum
Keywords:

compliance, ethics

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The main responsibility of a corporate citizen is to be profitable. Profit is both a company’s reward for a product or service and recognition from the market that society deems the output valuable. Profit should be achieved without burdening society or the state, otherwise it will divert key resources away from areas that need it more. Corporate citizens also need to ensure that their operations do not negatively impact the environment and society at large, by continuously improving themselves. If a corporation causes any negative externalities,1 then government should ensure the social costs are fully reflected in the corporation’s production costs so that no single corporate citizen can gain an advantage at the expense of others. This will deter corporate citizens, their employees and known associates from violating laws, rules, regulations and norms.

A company’s compliance function consists of any and all efforts it makes to exert control and address any negative impacts that may arise over their internal operations. Effective compliance management and ethical practices by corporations will not only reduce their risk of non-compliance but will also help build trust in businesses that promote market integrity. They can also substitute for state-led law enforcement and uphold the rule of law.

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