Compliance

Compliance means conformity to rules and describes adherence to rules, laws and standards of conduct.

The use of the term compliance has increased in the German language in recent years. Companies use compliance rules to ensure that regulations are adhered to in order to avoid or minimize the risk of legal violations and liability.

Compliance systems in companies serve to ensure and monitor conformity with regulations, develop reporting mechanisms in the event of breaches and take action in response to any breaches.

Under labor law, compliance regulations are usually issued as a code of conduct. Some compliance regulations require the approval of the works council. Compliance is also used from a marketing strategy perspective. Companies can make use of implemented compliance regulations for a good image.