What is necessary from the board when establishing a compliance program?

When establishing a compliance program, the board's vision and guidance are crucial as they set the tone and direction for the organization's compliance culture. Board members play a pivotal role in communicating the importance of compliance to the organization and ensuring that it aligns with the overall mission and values of the company. Their commitment to compliance influences employee attitudes and behaviors, encouraging a culture where compliance is prioritized and integrated into daily operations.

By providing clear guidance, the board helps to define compliance objectives and ensures that resources are appropriately allocated to meet these goals. Moreover, their leadership is essential in fostering accountability throughout the organization, supporting the principle that compliance is not just a regulatory obligation but an integral aspect of business strategy. This foundational support can lead to effective compliance programs that reduce risk and enhance the organization's integrity and reputation.