The compliance function and its progression within companies

The Corporate Governance and Compliance Department explains the implementation of a new Compliance System aligned with best practices in this field.

  • Observatories
  • Sustainability

The growing number of laws and regulations, both internal and external, that companies must abide by in their day-to-day work, require that control measures be established to ensure that all members of the organization fulfil the obligations and commitments that derive from such laws and regulations.

Stakeholders expect companies not only to comply with the obligations and commitments derived from such regulations, but also to guarantee that sufficient control systems have been implemented to prevent the violation of such obligations or at least to minimise the risks of non-compliance. Issues such as the prevention of corporate corruption, environmental protection, data protection, corporate criminal liability and anti-competitive practices, among others, increasingly require a regulatory compliance monitoring system and demand new forms of action within companies to prevent inappropriate internal practices, thus avoiding the consequent liabilities.

At Red Eléctrica, we are implementing a new Compliance System, in line with best practices in this field, aimed at ensuring that the organisation adequately respects the obligations established and commitments undertaken, and in this way, foster a proactive culture regarding the management of non-compliance risks.

This process needs to be so far reaching in its scope that it takes into account the phenomenon that the new role that business ethics and corporate responsibility attributes to companies, and to stakeholders involved in their activities, in the economic, social and environmental development of society. Stakeholders are precisely those who demand more and more responsibility from companies in relation to respect for internal and external regulations and the establishment of more ethical and transparent relations in the undertaking of their activities; commitments that must be assumed in a sustainable yet unwaivering manner.

Therefore, it is necessary to progressively adopt a corporate culture of regulatory compliance in companies. In this context, training is an essential tool for regulatory compliance, with the inclusion of effective awareness campaigns and increasingly comprehensive internal training programmes. Awareness raising actions carry a lot of weight, but also have greater difficulties associated to them, as they pursue a change of attitude by the organisation in relation to regulatory compliance and to the role that must be assumed gradually by everyone who is part of the organisation. As part of the ongoing efforts carried out by the Company since 2013 to raise awareness on ethics management, we are now working on developing a dissemination and awareness-raising plan regarding the Compliance System which will be launched in 2017.

In short, we are immersed in an irreversible process that goes beyond strict compliance with the laws, undertaking in addition the commitment to comply with the internal regulations which have been established within the Company. This process is closely related to the growing demand for companies to establish more ethical and transparent relations with their stakeholders and with society as a whole.