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.
This survey and related study with a focus on Australia, reveals 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.
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% of global respondents see compliance as an opportunity to create value in the form of trust, confidence, and ultimately bolstering corporate reputation. From respondents surveyed within Australia, 56% also agree with this statement.
- Compliance is getting more complicated: In Australia fast-changing legislation, increased complexity, expansion plans into new countries and increased scrutiny from other non-government organisations are the top four challenges. 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% of global respondents plan to increase financial and people resources dedicated to global compliance ‘significantly’ in the next five years. From the 48% of Australian respondents who said they would also increase these resources only 2% advised they would want a 'significant' increase.
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”.
Read full insights of the global study, ‘Unlocking trust: why global compliance is on the business agenda’ to learn about the opportunities global compliance can create, the challenges ahead, how tax transparency acts as a microcosm for compliance, what business leaders are doing to prepare for the future, and more.