he article was also published on hvg.hu
Ensuring ethical corporate conduct is fundamental. However, an organization can be legally compliant while still being professionally questionable or less successful in business, and vice versa.
For a business to stand out in its field, it must meet more than just customer expectations. Numerous self-imposed obligations must be met to ensure long-term success in the market. Relevant laws, system and product standards, professional protocols, and stakeholder expectations—whether from customers, employees, external suppliers, or subcontractors—are all key areas where businesses must navigate requirements competently and adapt to changes in a timely manner. Ensuring and maintaining ethical corporate conduct is essential, but more is required. A company may be legally compliant while still being professionally flawed or less effective in business, and vice versa. Companies that strive for compliance tend to have a stronger reputation, better cooperation with stakeholders, improved workflow outcomes, and lower regulatory penalties. They also experience fewer compensation claims and may achieve higher stock returns compared to competitors.
The foundation of a complete compliance framework is built upon an organization’s processes. A well-structured operational map can comprehensively model core value-creating, support, and management processes, detailing their chronological sequence and interdependencies. Following this operational map, the first step is to integrate internal regulations and information databases with an up-to-date requirement list. This ensures that external regulations can be clearly and practically implemented across all levels and departments of the organization. Automated database services can be of great assistance in this process. Since legal regulations and system standards often use broad language, it is advisable to consider supplementary judicial precedents, interpretation guides related to standard requirements, and benchmarking results. Establishing internal regulations is a significant milestone, as risks within an organization tend to emerge at its weakest points. In a high-performing organization, risks will also be proportionally higher. Consequently, interpreting legal requirements in the context of the company’s practices, implementing awareness programs, and utilizing internal communication forums become increasingly valuable. By systematically analyzing policies and best practices for various processes, organizations can assess their level of compliance with applicable requirements. This includes ensuring that post-contractual client expectations are reflected in agreements, additional product-related charges are properly invoiced, user manuals comply with legal standards, energy consumption data reporting is backed by reliable records, and customer complaints are effectively addressed. An organization can establish its own “internal court” and information channels to proactively identify unlawful behavior, improper practices, and potential risks. By addressing these risks preventively, companies can sustain ethical, professional, and business success while aligning with achievable compliance expectations.