What is Compliance?

  • Compliance is adhering to rules, such as laws, standards, codes, and policies. Governments usually establish these rules to ensure that all organizations legally conduct their business activities.

  • Companies can also set rules and standards to ensure employees perform their activities according to specific parameters and guidelines.

  • Governments and organizations can enforce rules through regulatory bodies, agencies, or departments that monitor each business activity and assess how employers and employees follow the set rules.

For instance, a government can use a health and safety program to oversee and regulate construction sites within a province or territory. This program can check the construction company’s safety provisions in its work setting and ensure those precautions align with the provincial regulations. In addition, the company can create a department or a position, such as a safety officer or manager, to oversee how its employees use the machinery and equipment in their workplace. They can also create a safety committee and ensure all employees can access training.