Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323103 
Year of Publication: 
2021
Citation: 
[Journal:] Ekonomika [ISSN:] 2424-6166 [Volume:] 100 [Issue:] 2 [Year:] 2021 [Pages:] 171-189
Publisher: 
Vilnius University Press, Vilnius
Abstract: 
Corporate investment in compliance in general and compliance management systems (CMS) in particular, follow the cardinal management obligation to always obey the law (so-called "management duty to legality"). But does the compliance function as any other corporate investment really add value favoring all shareholders? The socially desired answer should be probably "yes", but the business reality shows a different picture: the measurement of the compliance value is a "blind spot" in the scientific theory and research as well as in the corporate practice. This paper analyzes reasons for that "blind spot" and explores the systematization of the compliance value drivers setting up a practical model that monetarizes these effects as well as calculating the added value and ROI of compliance. The author concludes that this quantification is particularly relevant to practice, as the compliance function must be able to measure the quantified impact(s) of the compliance function in order to demonstrate its value to management, shareholders, as well as all interested parties, and to justify and strengthen its role increasing the effectiveness of the CMS as part of the company's "second line of defense".
Subjects: 
Compliance Management System
added value
ISO 37301
Three lines of defense
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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