To ensure an organisation’s smooth and ethical operation, compliance and governance play interrelated and critical roles.
Organisations must comply with laws, regulations, policies, and standards relevant to their operations. Compliance requires aligning all business practices with legal and ethical requirements and avoiding illegal or unethical behaviour. Maintaining an organisation’s reputation and avoiding legal and financial penalties is possible through compliance.
Governance establishes and maintains a framework of rules, policies, and procedures to ensure an organisation is effectively managed and controlled. Decision-making processes, accountability mechanisms, and performance management practices guide an organisation’s activities. Governance is necessary to ensure efficient resource usage, risk management, and protection of stakeholder interest.
Compliance and governance create a robust framework for ethical and effective organisation operations. Compliance establishes boundaries within which an organisation must operate, while governance provides the structure for managing the organisation within those boundaries. By ensuring compliance and governance, organisations build trust with stakeholders, protect their reputations, and achieve strategic objectives.
