ISO 37301 – Understanding and Managing Compliance Obligations

Apr 29, 2025 | Compliance

Introduction

ISO 37301:2021 is the global standard for compliance management systems, designed to help organisations operate with integrity and meet both legal and ethical expectations. A core component of ISO 37301 is the identification and management of compliance obligations. These obligations form the foundation of a robust compliance system and help organisations avoid legal penalties, reputational harm, and operational disruptions.

What Are Compliance Obligations?

Compliance obligations refer to the requirements an organisation must adhere to. These include not only legally binding requirements but also commitments the organisation chooses to follow voluntarily.

  • They typically fall into two categories:
  • – **Mandatory Requirements**: Laws, regulations, licenses, permits, and court orders.
  • – **Voluntary Commitments**: Industry codes of conduct, internal policies, standards, and stakeholder agreements.

Compliance Obligations in ISO 37301

Compliance obligations are introduced in Clause 4.2 (Needs and expectations of interested parties) and more explicitly addressed in Clause 6.1.3 (Compliance obligations). Organisations are required to:

  • – Identify applicable compliance obligations.
  • – Determine how these obligations affect operations.
  • – Integrate compliance obligations into policies and procedures.
  • – Continuously monitor for changes in obligations.

Managing Compliance Obligations Effectively

  1. To effectively manage compliance obligations, organisations should:
  2. 1. Develop a compliance obligations register or inventory.
  3. 2. Assign accountability for monitoring and updating legal and regulatory changes.
  4. 3. Align internal controls and audits with identified obligations.
  5. 4. Provide training and communication on obligations to relevant employees.

Example: Manufacturing Company

A manufacturing company might have compliance obligations such as environmental protection laws, labor regulations, product safety standards, and its own ethical sourcing policy. These obligations must be systematically tracked, understood, and implemented through internal controls and staff training.

Conclusion

Understanding and managing compliance obligations is critical for any organisation that seeks to operate responsibly and sustainably. ISO 37301 provides the structure and tools to help organisations stay ahead of legal requirements, meet stakeholder expectations, and foster a culture of compliance. Regular review and proactive management of obligations are key to maintaining an effective CMS.

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.