Introduction
A clear and well-communicated compliance policy is essential for any organisation committed to integrity, accountability, and lawful conduct. ISO 37301:2021, the international standard for compliance management systems (CMS), recognises the central role a compliance policy plays in setting the tone for ethical behaviour and regulatory adherence. This blog explores the purpose of a compliance policy under ISO 37301 and why every organisation needs one.
What is a Compliance Policy?
A compliance policy is a formal statement issued by top management that expresses the organisation’s commitment to meeting its compliance obligations. It outlines expectations for ethical conduct, legal compliance, and alignment with corporate values. The policy provides a foundation for all other elements of the compliance management system.
Clause 5.2 – Compliance Policy Requirements
According to Clause 5.2 of ISO 37301, top management must establish, implement, and maintain a compliance policy that:
– Is appropriate to the purpose and context of the organisation
– Includes a commitment to fulfil compliance obligations
– Promotes a culture of compliance and ethical behaviour
– Provides a framework for setting compliance objectives
– Is communicated, understood, and applied across the organisation
– Is reviewed regularly for continued relevance
Why a Compliance Policy Matters
A well-developed compliance policy helps an organisation to:
– Establish a shared understanding of expected behaviour
– Demonstrate commitment from leadership
– Guide decision-making in complex or ambiguous situations
– Build stakeholder trust and credibility
– Support enforcement and disciplinary procedures when breaches occur
Best Practices for Developing a Compliance Policy
When creating or updating a compliance policy, organisations should:
1. Align the policy with organisational values and legal obligations.
2. Use clear, accessible language suitable for all staff levels.
3. Involve key stakeholders in the drafting process.
4. Ensure wide distribution and training on the policy.
5. Monitor effectiveness and revise as needed.
Example: Logistics Company
A global logistics provider developed a compliance policy focused on anti-corruption, trade compliance, and health and safety. The policy was endorsed by senior leadership and distributed to all employees in multiple languages. Annual training and regular communications ensured the policy became part of the organisational culture.
Conclusion
A compliance policy is more than a document—it’s a declaration of an organisation’s values and its commitment to doing business the right way. ISO 37301 ensures this policy is not only written but integrated into the organisation’s operations and mindset. With strong leadership and regular communication, a compliance policy becomes the compass that guides ethical and lawful behaviour at all levels.
For further information and to book your ISO37301compliance management systems survey please contact: Marcus J Allen at Thamer James Ltd. Email: [email protected]
Marcus has twenty years’ experience in delivering Governance, Risk and Compliance solutions to over two hundred organisations within the UK. Marcus holds the respected Diploma in Governance, Risk and Compliance from the International Compliance Association and holds a master’s degree in Management Learning & Change from the University of Bristol.
Marcus is a member of BSI G01 Governance Committee, this committee contributed to the formulation of the above Standard, in the UK.