Compliance Program
Overview of Compliance Program
Definition of CP (Compliance Program)
What is Compliance Program (CP)?
As an internal compliance system operated by companies to voluntarily comply with fair trade laws, its purpose is to proactively prevent violations of the law by presenting clear behavioral standards for compliance with relevant laws to executives/employees.
What are fair trade laws and regulations?
Fair trade laws and regulations refer to the laws under the jurisdiction of the Fair Trade Commission, and there are a total of 13 laws, including the Fair Trade Act, Subcontracting Act, Franchise Business Act, and Large-Scale Distribution Act.
8 Elements of CP
- 1. Establishing and implementing Standards and Procedures for the Compliance Program
- Providing Standards and Procedures, through which the employees can understand and comply with the laws and regulations.
- 2. CEO's will and support for Self-compliance
- Public Declaration of the CEO's will and policy to comply with relevant laws and regulations through the Company's website and etc.
- 3. Appointment of compliance manager in charge of CP operation
- Appoint and announce compliance manager with practical authority and responsibility for CP operation through a resolution of the board of directors.
- 4. Production and utilization of Compliance handbook
- Create and distribute internal guidelines that can be used in performing tasks related to fair trade compliance
- 5. Continuous and xontinuing compliance Program
- Conduct continuous and systematic Compliance training for all employees
- 6. Establishment of an internal monitoring system
- Have an internal monitoring system in operation for the prevention and early detection of violations of law
- 7. Discipliining employees who violated laws and regulations
- Have company rules in place stipulating sanctions corresponding to violations of laws and regulations
- 8. Effectiveness evaluation and improvement measures
- Implement and improve the ‘inspection, evaluation, etc.’ system of CP standards, procedures, and operation for effective operation