"A corporate compliance program is a formal program specifying an organization's policies, procedures and actions within a process to help prevent and detect violations of laws and regulations". In this context discuss t

A corporate compliance program is generally defined as a formal program specifying an organization's policies, procedures, and actions within a process to help prevent and detect violations of laws and regulations. The essential of a successful compliance program are as under: Development of written Compliance Policies, Procedures and framing of Standards: The successful implementation of any compliance program needs a well drafted written document of the compliance policy. The policy shall contain the regulatory aspects which are in force as on the date of the framing of the policy, set a Code of Conduct / Standards, action to be taken in case of deviations from the set standards and also the initiation of the disciplinary actions against the erring staff. Designation of a compliance officer and compliance committee: The Compliance Policy shall contain a clause for appointment of a designated compliance officer, who shall take care of the regulatory compliance related functions and he shall be responsible to ensure adherence to the compliance policy and put up a note before the Board of Directors periodically for their perusal and directions wherever required. The Board approved note, wherever required be submitted to Regulatory Authorities. Developing open lines of communication: The Compliance Policy shall have a provision to welcome open communication as a product of organizational culture and internal mechanisms for reporting instances of potential fraud and abuse. This concept of whistle blower, may prove to be early warning signals and may be effective in prevention thereof. The name and designation of the reporting official shall be kept confidential. Appropriate training and education: For effective implementation of the compliance policy, there is need of proper training and education to the field functionaries and policy implementing officials. Internal monitoring and auditing: The compliance policy shall contain a clause for having the effective auditing and monitoring plans. Response to detected deficiencies: Wherever the deficiencies in the prescribed procedure come in the knowledge of the concerned official, there shall be a reporting system to make a report to the designated official. Enforcement of disciplinary standards: There shall be a clause in the compliance policy to take the disciplinary action against the erring official, who have not adhered to the prescribed set of rules and regulations. Effective use of Information technology: By using available tools of information technology compliances can be managed effectively. There are various compliance management software available which facilitate compliance management.