What do policies and procedures refer to in the context of compliance?

In the context of compliance, policies and procedures refer to guidelines that establish the framework for compliance with ethical standards within an organization. These guidelines serve to inform employees about the expectations related to their conduct, detail the processes to be followed to uphold these standards, and outline the consequences for not adhering to them. The primary aim is to foster a culture of compliance and ethics, ensuring that employees understand how to act in ways that are not only legal but also align with the organization's ethical values.

While employee training materials may incorporate elements of these guidelines, they are not the only aspect of compliance policy. Similarly, documents focused on customer relations and informal employee conduct expectations do not encapsulate the full intent and function of the formal policies and procedures necessary for compliance. Guidelines specifically tailored for compliance with ethical standards provide the formal backbone that supports an effective compliance program and helps mitigate risks associated with unethical behavior.