BY now, most of us have caught up with the controversial Captain's Peak resort located at the famed Chocolate Hills in Sagbayan, Bohol, which has become the subject of scrutiny in the last few weeks. The uproar was triggered by a viral post from a vlogger with the purest intentions.
While the vlogger's intent was to feature the resort and its amenities and facilities, citizens cannot help but see how this resort is seen as being literally in the middle of the famed Chocolate Hills, obviously obstructing what could have been an enjoyable view of nature, and arguably so, as the Chocolate Hills Natural Monument has been, in fact, declared a protected area during the Ramos administration by virtue of Proclamation 1037. In a sense, this issue is reminiscent of DMCI's construction of a building that ended up "photobombing" the Rizal Park monument in Manila, prompting people to complain about the structure obstructing the heritage site.
Of course, as with any public outcry, the government steps in to investigate to get to the bottom of the matter. The issue at hand has now given birth to many other technicalities, from the operator of the resort in the Chocolate Hills not having an environmental compliance certificate (ECC) to extending the same lookout to nearby establishments and opening a possible Congressional inquiry. At the core of the issue lies the very simple and evident need to be compliant. In a country like the Philippines, compliance matters — in all forms and substances — and one lacking document, unfortunately, can lead to catastrophic repercussions.
In business, compliance is not just a box to check — it is a road that leads to success. From legal obligations to ethical considerations, compliance plays a pivotal role in shaping organizational integrity, reputation and sustainability. Had the resort in the Chocolate Hills spent some time ensuring that the necessary papers were in place, they may have saved themselves the loss in revenue by not being issued a cease-and-desist order for non-compliance.
The importance of compliance in business
Compliance serves as the guiding compass that keeps businesses on the right path, ensuring adherence to laws, regulations and ethical standards. The laws are there to ensure the business organizations' and owners' behavior remains compliant. Compliance comes in many forms, be it in government permits, accreditation and regulatory, to name a few — all matters and addresses the following aspects of business:
1. Legal obligations. Compliance with applicable laws and regulations is non-negotiable for businesses. Failure to comply can lead to legal repercussions, including fines, penalties, lawsuits and regulatory sanctions. Unfortunately, in the case of Captain's Peak Resort, the establishment has been ordered to be closed pending issuance of the ECC, which will obviously result in income losses.
2. Reputation and trust. Compliance is the bedrock of trust and credibility. By demonstrating a commitment to ethical conduct and regulatory compliance, businesses build trust among customers, investors, partners and other stakeholders, enhancing reputation and brand equity.
3. Risk Management. Compliance helps identify, assess and mitigate risks associated with regulatory violations, financial misconduct, data breaches and other potential threats. By proactively managing risks through compliance measures, businesses protect themselves from costly legal disputes and reputational damage.
Non-adherence to laws and regulations will lead to dire consequences, including impact on the livelihood of workers. Organizations need to understand how non-compliance ultimately affects our workforce and the families that they support.
Compliance matters. Achieving and maintaining compliance requires a proactive and comprehensive approach. Do not wait for a viral post, putting your organization in a bad light before you get things going. Here are practical strategies for ensuring compliance excellence:
1. Understand applicable regulations. Identify and understand the laws, regulations and industry standards that apply to your business. Stay informed about changes and updates to ensure ongoing compliance. At the end of the day, we cannot blame a viral post for the unexpected business impact — such non-compliance was a time bomb waiting to explode. If such laws, regulations and industry standards are too technical to understand, please engage legal and compliance experts so they can interpret complex regulations and navigate compliance challenges effectively.
2. Conduct compliance assessments. Regularly assess your compliance posture through internal audits, risk assessments and compliance checklists to identify areas of non-compliance and prioritize corrective actions.
3. Develop policies and procedures. Establish clear and concise compliance policies and procedures that outline requirements, responsibilities and expectations for employees. This may also require training and education to educate your employees about compliance obligations and other best practices.
4. Implement controls and monitoring. Implement internal controls, checks and monitoring mechanisms to detect and prevent compliance violations. Utilize technology-based solutions to automate compliance processes and identify potential issues. The same should be established via reporting mechanisms.
5. Monitor external changes. Stay informed about changes in laws, regulations and industry standards through regulatory alerts and professional networks. Proactively adapt your compliance strategies to address new requirements and emerging risks.
6. Maintain documentation. Keep accurate records of compliance activities, training, policies and procedures to demonstrate diligence and due diligence in compliance matters.
7. Seek continuous improvement. Regularly review and evaluate your compliance program to identify areas for improvement and optimization. Solicit feedback from stakeholders and implement enhancements as needed to strengthen your compliance posture.
Finally, compliance is not just a regulatory obligation; it is a fundamental principle that guides ethical governance and responsible business conduct. By prioritizing compliance excellence and adopting proactive strategies, businesses can mitigate risks, protect their reputation and ensure long-term success in today's very dynamic business environment.
Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building and sustainability. The author may be reached at kay.lugtu@hungryworkhorse.com
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