BulletProofBlog the blog on crisis communications

On Tuesday, regulators and corporate compliance officers from top companies around the world gathered at the Eighth Annual Corporate Accountability Conference in London to discuss the most pressing issues, trends, and challenges that are evident in today’s complex global regulatory environment. If one thing is clear after listening to many of the leading compliance experts at work today, it’s that the rules that govern the way companies do business are evolving at a feverish pace in the wake of global financial crisis – and that the effects of this regulatory sea change will be felt across all borders and industries.

According to these experts, key elements of the coming regulatory changes for companies in the U.S., UK, and throughout the European Union will likely include:

• Enhanced communication and cooperation between domestic and foreign regulatory bodies;
• Changes in the material information that companies are required to disclose to regulators, investors, and other key stakeholders;
• An increased focus on prosecuting corruption, maintaining fair competition, and addressing compensation issues;
• Moves to provide shareholders in public companies with greater corporate governance powers;
• Increased oversight of companies deemed “too big to fail” and careful monitoring of systematic risk; and
• Moves to enhance regulatory efforts aimed specifically at the financial services, insurance, and pharmaceutical industries.

According to the experts, a robust, up-to-date compliance program is absolutely essential to navigating a new and increasingly perilous regulatory environment. Implementing such a program can be expensive, but as panelist Lanny Breuer – an Assistant Attorney General in the Criminal Division of the U.S. Department of Justice (DOJ) – said, “it’s not nearly as costly as running afoul of the DOJ.”

Of course, the brand and reputational liabilities that accompany high-profile government investigations and enforcement actions can be costly as well – meaning that effectively articulating compliance to shareholders, customers, employees and business partners is also fast becoming a necessity in the post-financial crisis era.

With higher hurdles to clear and harsher penalties at play, communicating the ways in which a company meets and exceeds standard compliance provides a tangible strategic advantage in a global marketplace that is increasingly attuned to how well a company follows the rules of the road.

Sara Brown Meehan is a Vice President at Levick Strategic Communications, the world’s leading crisis communications firm, and a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.