What is the meaning of Compliance?
The term compliance is a legal and business paraphrase for the compliance of companies – i.e. the observance of laws, voluntary codes and guidelines. The entirety of a company’s measures and principles for complying with certain regulations is referred to by the “Government Commission on the German Corporate Governance Code” as a “Compliance Management System”. With its help, criminal and civil law risks can be efficiently reduced. The measures taken are not only suitable for uncovering violations of rules and regulations but also for preventing them. In addition, a functioning compliance system can represent a competitive advantage based on how public clients award their contracts. The rules and guidelines can be both internal and external rules, such as laws.