Abstract

Number and complexity of compliance requirements for companies steadily increase. Enterprises focus on the implementation of compliance programs to ensure conformance with rules and regulations. However, it is the employees’ compliant behavior and their understanding of compliance requirements that support realization and ensure conformance. Thus, companies must ask how to integrate employees into compliance programs and how to foster their understanding for compliance necessity. The paper at hand explores how key compliance components are implemented in practice and which factors facilitate the implementation of these components. Based on multiple case studies, two central key findings are identified contributing to the discussion of compliance implementation. First, the tone at the top facilitates compliance by strongly supporting a compliance culture which in turn positively influences the implementation of all four key compliance components. Second, the key component compliance reporting and controlling is not only supported by compliance facilitators but also builds the foundation for one of them. The facilitator incentive systems must be based on comprehensive compliance performance measures to provide a common understanding of compliance goals in a company. Additionally clear measures provide the basis to identify eligibility for incentives or the imposture of sanctions. In this context, the set up of a compliance performance measurement system is discussed, highlighting the necessity of basing it on adequate information system structures.

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