The importance of conduct in compliance
Posted on 11/11/2024
The concept refers to the procedures and good practices adopted by organizations with the objective of, on the one hand, identifying and classifying operational, regulatory and legal risks that they face, in order to create and operate prevention, management, control and response mechanisms against said risks.
The concept emerged in the 1970s, following a series of corporate scandals and the application of legislation in the United States related to corruption issues.
Historically, the ability of individuals to evade compliance with obligations moves much faster than the institutional capacity to generate standards and mechanisms that prevent non-compliance.
Today, there are a series of mechanisms from the perspective of behavioral sciences, to support decisions and actions for regulatory compliance.
On the one hand, they work to identify case by case, sector by sector, company by company; what are the incentives and disincentives associated with compliance or non-compliance, as well as whether there are imbalances between the incentives that make the conduct that will give rise to undue responsibility more conducive.
They also identify the specific levels of disincentive that generate a change in behavior, for example, for a person who is used to throwing trash in the street, what is the level of fine that leads him to comply with the obligation of not throwing trash. At the same time, with this same example, it is not enough to establish penalty mechanisms; from the behavioral perspective, the certainty of the application of the consequences of non-compliance with the norm is required.
The concept of Nudge has been taken up again, which refers to behavioral interventions, to identify which ones favor regulatory compliance, taking advantage of the tools and analytical capacity of psychology, to neutralize the tendencies that promote non-compliance and promote those that promote the application of regulations.
It is necessary to analyze these processes from all perspectives, to ensure that people and organizations have a greater orientation towards compliance with their obligations, for the benefit of the public, of society, giving greater certainty and transparency to the operation of companies.
