3. Risk Exposure and Fraud
Fraud charges can stem from any number of alleged business activities. Corporations exist to earn a profit and maximize shareholder value. Yet regulations make them vulnerable to various ethical rules, such as ones that might damage the environment or harm employees.
When businesses hire people, task them with responsibilities, or interact with consumers, they assume various liabilities. Authorities may charge them with violating regulations or laws that can threaten the business’s existence, or liberty for individuals. Leaders find it impossible to supervise every aspect of an employee’s work life or eliminate exposure to fraud or liabilities.
Compliance programs may help team members understand how their decisions can make them or their business vulnerable. By making more team members aware of risks, they may make better decisions, thereby reducing exposure to litigation.
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