EconomyFinancialCompanies have in compliance an ally that they do...

Companies have in compliance an ally that they do not finish knowing

There are still few companies in Mexico that know this, but compliance or corporate compliance could be their best ally to avoid crises , grow safely and offer more value to their clients, according to Eduardo Navarro, director of compliance programs at the Complutense University of Madrid and an authority on the subject in Latin America.

Of the extensive and growing business and management vocabulary, compliance remains an unknown term for most smaller businesses and it is the large corporations, although not all, that have taken some steps.

“We assume that the term is not even known, it is not a priority,” said Navarro, who is in Mexico for the Ibero-American Compliance Meeting, one of the most important events on the subject. “They have other priorities, but compliance is key to their future.”

One of the main reasons, he says, is that it allows companies to establish clear protection and behavior mechanisms for their workforce. That is, clear rules and processes to avoid acts of corruption , embezzlement, harassment or other activities to the detriment of the company.

In Mexico, companies are concerned about their reputation with customers, but there are pending issues within. “Every time I come to Mexico I see trucks that say: ‘if you drive badly, call that number,’ and that’s fine. Compliance makes this search for trust greater, not only externally but from internal processes”, adds Navarro.

Mexico is considerably behind, but so are other countries. Spain, explains the specialist, was also lagging behind as recently as 2015, when the legislation was modified to recognize the criminal liability of legal entities. Compliance , then, gained momentum.

“We arrived late in Spain, but we are doing better and with safer steps,” he says. “Mexico can also take firm steps.”

The pandemic meant a pause in the implementation of compliance , since the priority was another: survival. Now, in full recovery, it has become a key tool to show the corporate commitment to good behavior.

Navarro makes it clear: corporate compliance officers are not police officers or executors of justice. They are responsible for ensuring that the company’s guidelines are met, for taking care of the objectives and interests of all those who work in it. And no one is above it.

“Ideally, the owner of the company appoints the compliance officer,” he explains. “And his removal must also be above the powers of the CEO or other directors.”

The compliance officer does not fire either, that is a matter of Human Resources, he only safeguards the best practices. These concepts, comments the specialist, are key to the proper implementation of best practices.

Another key point for Navarro is cost. Yes, having a compliance officer represents an investment of resources, but not having one can be more expensive. Fraud, corruption, scandals are preventable, being reactive in a company implies more money to gradually recover people’s trust.

“The first step to implement compliance in a company is the will, to take a picture of the risks and realize the risks of the market,” he said. “This is not a fad, consumers want companies with good valuations.”

Although the road is still long in the country in terms of corporate compliance, Navarro trusts in something: when he returns to Mexico there will be progress, and yes, firm steps.

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