Compliance obligations arise from a variety of sources, reflecting the need for organizations to adhere to laws, regulations, standards, and ethical principles. Here's where these obligations typically originate:
National, Regional, and Local Laws: Governments at various levels enact laws that businesses must comply with. These might relate to taxation, employment rights, environmental protection, consumer protection, data privacy, and more.
International Laws and Regulations: Organizations operating across borders must comply with international laws, treaties, and agreements. This can include regulations on trade, human rights, environmental protection, and more.
Contractual Obligations: Contracts with customers, suppliers, or partners may include specific obligations that must be adhered to. Failure to comply can result in legal action or penalties.
Environment, Social, and Governance (ESG) Expectations: Organisations are increasingly held to social and environmental responsibility standards internally and by the public. This can include commitments to sustainability, diversity and inclusion, community involvement, etc.
Standards Organizations: International and national standards bodies issue guidelines and standards on various aspects of business, such as quality management (ISO 9001) or information security (ISO 27001). Compliance with these standards is often voluntary but essential for doing business in certain markets.