CP(Compliance Program) Overview
What is Compliance Program?
A compliance program is an internal system or process of education and supervision that is voluntarily
operated by a business entity. The program is designed to establish orderly rules for competition in
business, and to achieve voluntary compliance with the laws and regulations related to fair trade.
With a solid compliance program established in 2007, Chong Kun Dang has prevented the risks arising from
potential violations of fair trade-related regulations, and has strictly controlled its corporate management
based on compliance.
7 Steps in Compliance Program
- 7 Steps in Compliance Program
- 1. CEO Announces will to achieve compliance, and principles of compliance
- 2.Appoint the person in charge of compliance
- 3.Publish and distribute a compliance guide
- 4.Offer compliance education and training
- 5.Operate monitoring system
- 6.Apply sanctions for violations
- 7.Build a document management system
- 1CEO announces will to achieve compliance, and principles of compliance
- The CEO should announce the company’s will to achieve compliance and the principles to observe in
complying with laws and regulations on fair trade to the employees through a declaration ceremony on fair
trade or an official document (e-document included).
- 2Appointment of manager of the compliance program
- The Board of Directors should appoint the person who will take care of the compliance program and
notify all employees.
- 3Publish and distribute a compliance guide
- A compliance guide should generate under the responsibility of the compliance manager, and distribute
to the executives and staff those who are more prone to violate the laws and regulations on fair trade
- 4Offer systematic and consistent compliance education and training
- Education (on-line video training sessions included) to prevent violations of the laws and regulations on fair
trade should be offered to the directors and employees of those departments which are more likely to violate
laws and regulations on fair trade, such as those in charge of purchases and sales.
This education should be offered once every 6 months, and last for two hours or longer per session.
- 5Operate monitoring system (internal supervision system)
- A CP monitoring system should install, and the actual results or plans of supervising or auditing unfair trade
behaviors should report to (or approved by) the board of directors or the top management at least once.
- 6Apply sanctions on those who violate the regulations on fair trade
- Directors and employees those who violate the laws and regulation on fair trade. regulatory sanctions should
establish and apply it
- 7Build a document management system
- Documents on compliance should create and keep in a systematic manner.
*Chong Kun Dang has fulfilled the 7 steps described above, implemented and stepped-up CP criteria.