ITPEC IP October 2018 Question 79

Implementing rules, manuals and checking systems based on business ethics, and acting in line with laws and social norms — this is compliance management.

Compliance means observing laws and regulations, and in a broader sense internal rules, business ethics and social norms. Compliance management turns this into a business process: codes of conduct, rules and manuals, employee training, reporting channels and checking systems that detect and correct violations.

Answer (c)

Why not others:

• •(a) — monitoring whether management is adequate and appropriate on behalf of shareholders is corporate governance
• •(b) — being answerable to shareholders and other stakeholders for the company's activities and results is accountability
• •(d) — giving investors and analysts accurate, timely management information for their investment decisions is investor relations (IR)

Key rule: Compliance = obeying laws, rules and social norms; governance = overseeing management; accountability = explaining results; IR = informing investors.

Legal Affairs · AI-written, may contain errors