Compliance has long been a cornerstone of good business practice. But it can still be viewed as an obligation to be met rather than a driver of value. That’s why we conducted a survey of how business leaders approach global compliance, including where they focus investment, the risks they anticipate and what they expect from ‘good compliance’.
This survey, and related study, reveal that when compliance is done well it builds investor confidence, increases client and customer trust, and shapes a positive reputation with the outside world. Far more than ticking a box, global compliance is a source of opportunity.
A clear sense of responsibility
With 890 responses from senior compliance professionals in 25 countries, the study shows the clear sense of responsibility that business leaders have towards global compliance and the return on investment they expect to see.
It also provides insight into how business leaders view compliance as getting harder to manage because of increased complexity, fast-changing legislation and the long consequences of Covid-19. To keep up with developments, leaders are planning to boost investment in technology and the skills of their teams.
Good global compliance increases stakeholder trust and confidence: 58% see compliance as an opportunity to create value in the form of trust, confidence, and ultimately bolstering corporate reputation.
Compliance requirements are expected to become more difficult to meet in the future: 82% are confident they are successfully meeting the requirements now and will continue to do so in the future. However, over half of them (51%) expect compliance to get harder in the next five years. Fast-changing legislation, increased complexity and Covid-19 are the top three challenges; Brexit is the lowest-ranked challenge.
Leaders are investing in technology and skills to prepare for the future: 27% plan to increase financial and people resources dedicated to global compliance ‘significantly’ in the next five years.
Erick Gillier, Partner and Global Head of Outsourcing, Mazars says: “Global compliance has long been a cornerstone of good business practice but can still be viewed by some as simply an obligation to be met rather than an opportunity to be capitalised on. That’s why we set out to uncover how business leaders approach global compliance, including the attention they devote to it, the returns they expect, the risks they anticipate, and where they focus investment.
Erick adds: “With scrutiny on business as tight as ever, the findings that most leaders plan on increasing financial and human resources dedicated to compliance should be reassuring for anyone who wants to see good business done well.”
If you would like to find out more about our global compliance management and reporting services and solutions, please do not hesitate to get in touch and one of our specialists would be delighted to assist.
There are many risks inherent in managing regulatory compliance for an international group or multi-location company, particularly with the wide array of rules and regulations which are continuously evolving. Ensuring your tax and finance teams have control over compliance and reporting obligations globally and locally can also be costly, resource-intensive, and difficult to manage.
Business leaders are committing to and investing in global compliance to build trust and reputation, finds a global study from Mazars. The majority of businesses view compliance as an opportunity creator that can build trust and reputational benefits and are investing significant senior time in compliance: some three-quarters have top executives engage with compliance questions at least quarterly.