The sixth ingredient for a successful competition law compliance program: Discipline and incentives
This guest blog post is provided by the Competition Bureau, an independent law enforcement agency that ensures Canadian businesses and consumers prosper in a competitive and innovative marketplace. Headed by the Commissioner of Competition, the Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act (except as it relates to food), the Textile Labelling Act and the Precious Metals Marking Act.
How to keep your team on track with your compliance program!
Welcome to our series on Our Best Recipe for Compliance Programs! Today on the menu, the chef's pick is the sixth ingredient to an effective competition law compliance program: disciplinary procedures and incentives.
To make sure that employees follow your new compliance program, it's important to demonstrate its credibility and seriousness. A disciplinary code setting out incentives to encourage staff to follow the program, and the consequences for individuals who initiate or participate in conduct in breach of the Acts, deters misconduct and reflects a commitment to compliance. Just like a chef must affirm his authority to ensure the quality of food coming out of the kitchen, setting out disciplinary actions might be necessary to ensure compliance.
Consequences can include suspension, demotion, dismissal and even legal action, depending on the gravity of the case. They should apply both to managers and employees for non-compliance. Disciplinary action may also be taken when managers fail to initiate appropriate disciplinary action.
On the other hand, providing appropriate incentives to follow the compliance program can also play an important role in fostering a culture of compliance. Incentives could include promotions, bonuses, as well as demonstrations of active support, and these can also be considered for employee evaluation purposes. With incentives, your procedures can become common practice and spill over to the whole team in no time! Positive reinforcement can also create an environment of trust within your organization, rather than one of fear, and can motivate your staff accordingly.
In a nutshell, disciplinary procedures and incentives are both essential to get your employees to buy into compliance programs. Stay tuned for our next blog when we will reveal the last ingredient of our recipe!
Would you like to learn more? Smart cookies can read the Corporate Compliance Programs bulletin available on our website!
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