Necessity for Compliance Programs

In the 21st Century business world, companies are required to understand and comply with a variety of laws and regulations, including:

• Common law legal relationships with employees, creditors and landlords;
• Various licensing requirements imposed by federal, state and local governments;
• Federal and state securities laws
• Intellectual property rights
• Employment laws
• Corporate governance rules and regulations
• Federal and state statutes relating to consumer protection and other matters.

These requirements apply regardless of whether the business is operated as a proprietorship, a partnership, a limited liability company, or a corporation. Indeed, each form of entity has its own set of operational rules that must be followed in order to gain the legal benefits from the use of the entity. For example, in order for the shareholders of a corporation to take advantage of the limited liability offered through the use of the corporate form, they must observe the certain governance procedures and operational formalities.

Compliance programs are important even for companies that honestly believe they are acting in a lawful fashion since these programs are probably the best way to establish formal policies and procedures that can guide the actions of employees and institutionalize regular assessment of actual practices. Moreover, the existence of a formal compliance program that is actually followed can be an important factor in reducing the liability of the company in the event that a problem arises in spite of the controls that have been put in place. Compliance programs may not prevent abuses; however, they can certainly reduce the risk of government investigations and private litigation. Moreover, when an investigation or lawsuit arises, the existence of a compliance program can bolster the company's defenses.

AGREEMENTS, DOCUMENTS & FORMS:

Corporate Compliance Program
Board Resolution for Adoption of Compliance Program
Description of Compliance Group Organizational Structure
Code of Business Conduct
Letter from Chief Executive Officer Regarding Conduct Code
Employee Complaint Handbook Provisions
Corporate Policy on Health and Safety Matters
Hazard Waste Communications Program