IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v37y2010i10p816-831.html
   My bibliography  Save this article

Compliance: an over‐looked business strategy

Author

Listed:
  • Clelia L. Rossi

Abstract

Purpose - The purpose of this paper is to discuss the merits of self‐regulation and the art of embedding it within an organisation, not as a secondary activity but as a core and fundamental business skill that ensures the survival of a business entity in the long term. Design/methodology/approach - The objective is achieved by considering compliance leadership as a strategy within a modern company. If the highest layer of stewardship of the firm (directors) explicitly accepts a conventional definition of business ethics (the law, best practice, a set of values in a specific hierarchy), then the author can measure this agreement and benchmark it against the highest known standards of corporate governance. Findings - Rational shareholders and managers will behave morally and find acceptable categorical imperatives to govern their behaviour. The delivery and preservation of long‐term value demand that firms build capabilities to self‐regulate and co‐shape their environment, particularly if highly regulated. The paper suggests a way to organise the compliance leadership within some well‐known business structures and present the idea that the chief executive officer of a firm who operates in a complex regulatory environment must make compliance a significant part if not the core element of his or her overall strategy. Research limitations/implications - Some arguments highlighting weaknesses in the Kantian arguments have not been fully discussed. A global initiative that measures the relationship between ethical maturity and share price has not been undertaken in the writing of this paper. Practical implications - Twenty‐first century management must ensure the health and resilience of their company's culture to successfully manage and overcome the daily ethical questions that arise across all levels and layers of the organisation as a first priority and that whole business models can be built around this mission. Regulators should be accountable for recognising cultural crisis within the firms they regulate in order to balance the reliance on quantitative measurements of success and to navigate the complexity of the largest players in the market. Originality/value - The paper builds on earlier research by the author that rational norms of behaviour are core business capabilities that will produce industry leaders that can change the risk landscape of the industries wherein these firms operate. This new leadership will be demanded by the rational shareholder and will transform firms into stakeholder firms capable of interacting with their environment and creating and sustaining value over the longest term.

Suggested Citation

  • Clelia L. Rossi, 2010. "Compliance: an over‐looked business strategy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(10), pages 816-831, August.
  • Handle: RePEc:eme:ijsepp:v:37:y:2010:i:10:p:816-831
    DOI: 10.1108/03068291011070471
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291011070471/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291011070471/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/03068291011070471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Elena Demidenko & Patrick McNutt, 2010. "The ethics of enterprise risk management as a key component of corporate governance," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(10), pages 802-815, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wendy Mason Burdon & Mohamed Karim Sorour, 2020. "Institutional Theory and Evolution of ‘A Legitimate’ Compliance Culture: The Case of the UK Financial Service Sector," Journal of Business Ethics, Springer, vol. 162(1), pages 47-80, February.
    2. Patrick A. McNutt, 2010. "Edited ethics: corporate governance and Kant's philosophy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(10), pages 741-754, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salil K. Sen, 2020. "Decovidization through Rurbanization: The Re-development Option for Sustainable Energy Access," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 515-523.
    2. Enny Nurdin Sutan Maruhun & Wan Razazila Wan Abdullah & Ruhaya Atan & Sharifah Norzehan Syed Yusuf, 2018. "The Effects of Corporate Governance on Enterprise Risk Management: Evidence from Malaysian Shariah-Compliant Firms," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 865-877, January.
    3. Khalid, Maizatul Akmar & Alam, Md. Mahmudul & Said, Jamaliah, 2019. "Empirical Assessment of Good Governance in the Public Sector of Malaysia," SocArXiv 84ewh, Center for Open Science.
    4. Mihret, Dessalegn Getie, 2014. "How can we explain internal auditing? The inadequacy of agency theory and a labor process alternative," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(8), pages 771-782.
    5. Patrick A. McNutt, 2010. "Edited ethics: corporate governance and Kant's philosophy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(10), pages 741-754, August.
    6. Said, Jamaliah & Alam, Md. Mahmudul & Khalid, Maizatul Akmar, 2015. "Relationship between good governance and integrity system: Empirical study on the public sector of Malaysia," SocArXiv hdcf7, Center for Open Science.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:37:y:2010:i:10:p:816-831. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.