Compliance Program Development involves creating the "constitution" of a company—a set of internal rules, policies, and procedures ensuring legal adherence and ethical conduct. An effective compliance program is not just a pile of documents; it is a living mechanism that protects the company from fraud, corruption, discrimination, and other legal violations. For companies operating in Georgia, especially those collaborating with international partners, having such a program is a prerequisite for trust and stability. A well-designed program covers everything from a Code of Ethics to whistleblowing mechanisms. This service entails creating a tailor-made system that addresses the specific risks of your business.
What does this service cover?
Developing a compliance program includes the following stages:
- Risk Assessment: Analyzing the business model to identify where the highest probability of legal violations lies (e.g., procurement, sales, licensing).
- Policy Drafting: Creating anti-corruption policies, conflict of interest management, gift acceptance rules, and data protection policies.
- Code of Conduct: Developing a document defining the company's values and standards of employee behavior.
- Implementation Plan: Strategy for rolling out policies, conducting training, and familiarizing employees with new rules.
- Control Mechanisms: Establishing internal audit and reporting systems to detect violations.
Common Real-World Scenarios
Program development is necessary in the following cases:
- Export and International Trade: A European or American partner requires proof of a compliance program (e.g., GDPR, Anti-Bribery) before signing a contract.
- Rapid Growth: A startup has turned into a large company with 100+ employees. Chaotic management needs to be replaced by systemic rules.
- Attracting Investment: Investors (Venture Capital, Private Equity) conduct Due Diligence and demand established corporate governance.
- State Tenders: Tender conditions require the existence of an integrity policy.
Georgian Legal Framework
The legal basis of the program rests on the Law on Entrepreneurs (directors' liability), the Labor Code (internal regulations), the Law on Competition, and the Criminal Code (corporate liability). International standards such as ISO 37301 (Compliance Management Systems) and OECD guidelines are also considered. A properly drafted program can be used in court as evidence that the company took reasonable measures to prevent violations.
Process: How does a specialist work?
The lawyer conducts interviews with management and employees. "Weak points" are identified. Then, policies are written that are simple, understandable, and enforceable (not just existing "on paper"). The specialist helps the company appoint a Compliance Officer or create a relevant committee. The final stage involves testing the system.
Why Legal.ge?
A compliance program is not a template document; it must be tailored to your reality. On Legal.ge, you will find experts who know how to create an effective system that does not hinder business with bureaucracy but protects it from legal threats. Build your business on a solid foundation.
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