Compliance

In practice

Compliance sounds like something for large corporate groups. In small businesses it means something simple: the rules that apply to the business must actually be followed. If management cannot monitor this itself, it must work out how to ensure it. Under German law, anyone who neglects supervision in the business and thereby makes a criminal or administrative offence possible may themselves commit an administrative offence. In addition, an administrative fine can be imposed on the business itself. Delegation that relieves management of liability therefore requires demonstrable selection, instruction and monitoring. Conversely, a functioning system can reduce the fine. To achieve this, a small business mainly needs clarity about the key issues where a breach would really hurt, and one person who keeps an eye on them.