Five Compliance Best Practices for … Drafting Clear Compliance Dictates

As an accompaniment to our biweekly series on “What Every Multinational Company Should Know About” various international trade, enforcement, and compliance topics, below find an update to our series on compliance checks that every multinational company should consider. Give us two minutes and we’ll give you five suggested compliance best practices that will benefit your international regulatory compliance program.

Drafting clear compliance policies is essential for ensuring that employees understand their obligations and responsibilities in adhering to regulatory requirements and ethical standards. Here are some best practices for drafting clear compliance policies:

1. Use Plain Language: Write policies in clear, concise, and easily understandable language. Avoid using technical jargon, complex terminology, or legalistic language that may confuse or overwhelm employees, particularly if they are reading the policy in a second language. Define key terms and terminology used in the policy to ensure common understanding among employees, and provide definitions for terms that may be unfamiliar or have specific meanings within the context of the policy.
2. Organize Content Logically: Organize policy content in a logical and structured manner using headings, subheadings, and bullet points to break down information into digestible sections. Clearly outline key concepts, requirements, and procedures.
3. Be Specific, Be Detailed, and Provide Examples and Scenarios: Be specific and detailed in outlining requirements, procedures, and expectations within the policy. Provide clear guidance on what is allowed, prohibited, or required in different situations, leaving little room for interpretation or ambiguity. Include practical examples, case studies, and scenarios to illustrate key concepts and demonstrate how policies apply in real-life situations.
4. Address Roles and Responsibilities: Clearly define roles, responsibilities, and accountabilities for employees, managers, and other stakeholders involved in compliance-related activities. Specify who is responsible for implementing, monitoring, and enforcing the policy.
5. Provide Accessible Formats: Make policies easily accessible to employees through various channels, such as intranet portals, employee handbooks, or online training platforms. Ensure that policies are available in multiple languages, if necessary, to accommodate diverse audiences.

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