Compliance is defined as “the act of obeying an order, rule, or request” or “the state of meeting rules or standards.” In the corporate world, it refers to the process of adhering to applicable laws, regulations, standards, and ethical practices.

Corporate compliance specifically entails adherence to organizational rules, policies, regulatory requirements, secretarial compliances, and both local and international laws and regulations.

This commitment to compliance enables organizations to identify and prevent violations and non-compliances with various applicable laws, thereby safeguarding the organization from potential penalties and lawsuits. Many organizations now prioritize the implementation of corporate compliance policies and conduct regular audits to reinforce their commitment to being a law-abiding entity.