Sometimes it is easy to overlook the importance of human resources and compliance issues. In fact, human resource departments face significant enforcement and compliance risks. In addition, the head of human resources is an important partner on compliance. If a company suffers from weak compliance programs, its human resource department is sure to be a liability for the company.
Ehics and compliance cannot be seen as “owned” only by the ethics and compliance department. The factors that lead to misconduct, scandals, and safety accidents are within the domain of those leaders in the organization who can influence behavior. And who is better equipped and trained to manage behavior in an organization than HR?
Because people touch all aspects of an organization, a focus on human capital risk is a very important part of an effective risk management and corporate compliance program. Yet it is also because of this “human factor” – the complex involvement of people in all aspects of the business – that ownership of human capital risk management can end up ill defined. In fact, many organizations today face major challenges in this area due to a lack of clarity around roles and responsibilities assigned to human capital risk management.
Deloitte Consulting’s Mike Fuchs provides six specific ways compliance and HR functions can work together to elevate people-related risks to the top of the corporate agenda.
Mark Floyd explains why human resources professionals must understand the consequences of remaining complacent in an increasingly changing and heavily regulated workplace environment.
One sign of a mature Foreign Corrupt Practices Act (FCPA) compliance and ethics program is the extent to which a company’s Human Resources (HR) Department is involved in implementing a solution. This is the first in a multi-part series on the topic by Thomas Fox.