As the world has developed and progress in each and every field has been made, the education level has increases four folds in the consumers. With the availability of resources to all the mankind, issues highlighting the lack of responsible behavior from corporate concerns have surfaced a great deal. The awareness amongst the masses ensures them to demand a responsible corporate culture from these concerns. A glance through any periodical, journal, newspaper and any other publication will no doubt identify reports on malpractice by corporations, which have resulted in loss in one form or the other.
The adoption of a corporate compliance program by an organization creates standards and processes that it should be able to rely upon and against which it may be held accountable. A solid understanding of the rationale and objectives of the compliance program, as well as its goals and inherent limitations, is essential if the Board is to evaluate the reasonableness of its design and the effectiveness of its operation. If the Board has unrealistic expectations of its compliance program, it may place undue reliance on its ability to detect vulnerabilities. Furthermore, compliance programs will not prevent all wrongful conduct and the company should be satisfied that there are mechanisms to ensure timely reporting of suspected violations and to evaluate and implement remedial measures.
As corporate responsibility issues fill the headlines, corporate directors are coming under greater scrutiny. State legislations, court cases and scholarly writings offer a myriad of rules, regulations, prohibitions, and interpretations in this area. While all Boards of Directors must address these issues, directors of health care organizations also have important responsibilities that need to be met relating to corporate compliance requirements unique to the health care industry...................
