REQUIREMENTS FOR THE MANAGEMENT IN THE ESTABLISHMENT OF A COMPLIANCE FUNCTION
A question that arises again and again in corporate practice is that of the scope of discretion in the establishment and operation of a compliance management system. Here, a distinction must be made between bound and entrepreneurial decisions of the company management.
There is no discretion in complying with statutory provisions. These must be complied with without any ifs and buts. These are binding decisions.
On the other hand, there is a certain amount of discretion when it comes to defining and implementing organisational measures. After all, the company's management does not usually take on the task of ensuring compliance with laws and regulations as an original task, but delegates this to a certain group of people and in doing so provides the organisational framework. Even monitoring and control can be delegated to supervisors. In this respect, these are original management and organisational tasks that fall within the scope of entrepreneurial tasks - and for these there is undoubtedly entrepreneurial discretion.
The following requirements exist when establishing a compliance function:
Organisational requirements
Liability for breaches of the law is not strict liability. The liability is borne by the management in persona if it fails to take appropriate organisational measures. The case law[1] assumes here that the company management has the duty to create the organisational conditions to ensure that the authorised representative can actually fulfil the duty to avoid compliance violations. The scope of the duty is related to the size and structure of the company. The case law does not provide further details on the "how" of a compliance organisation, which allows the reverse conclusion that it sees the establishment and design of a compliance function as an original entrepreneurial task.
In addition to the aforementioned aspects of personnel allocation, organisational anchoring, task definition and control/supervision, the main organisational requirements include the interlinking with other management functions in the company. These include, in particular, general risk management, quality management, controlling and auditing. The form in which this dovetailing takes place depends on the organisational structure; however, it is essential that the compliance function does not represent an isolated "island solution".
Monitoring and control requirements
In principle, the organisation used (both within the meaning of § 130 OWiG and § 43 GmbHG) requires appropriate monitoring and control of the persons to whom the tasks of the compliance function are assigned. The random control of employees thus represents an elementary basic function of the business organisation.
However, the monitoring and control measures must be practicable and reasonable. Where exactly the limits of practicability and reasonableness are to be seen is not clearly defined. However, they are likely to be exceeded if the intensity of monitoring and control is so strong that it comes close to the supervisor actually performing the tasks of the supervised person himself. This would de facto nullify the right to delegate tasks.
Requirements for investigations and enquiries
The rightsSpeech[2] assumes that - although no clear obligation to do so can be derived from the law - a company then has internal Investigations / Inquiries if there are concrete indications of a violation of the rules, even if these indications are not the result of the regular, accompanying monitoring from the compliance function's area of responsibility. If the compliance function detects breaches of rules in the course of its regulatory activities, a corresponding investigation must be initiated without doubt so as not to call into question the purpose of the compliance function per se.
Summary and outlook
A sense of proportion is required when setting up, implementing and operating compliance management systems. Cost aspects on the one hand and the question of organisational proportionality as well as internal acceptance are weighty arguments for implementing not what is possible, but what is necessary in the area of the compliance function. The permissible exhaustion of the entrepreneurial discretion should therefore also take place at this point.
However, this leeway should not obscure the fact that the issue of implementing a compliance management system is a business imperative, because the mere absence of such a compliance function can already give rise to the personal criminal and civil liability of the company management.
Dealing with a compliance management system is complex and requires a number of different disciplines. On the one hand, a legal perspective is necessary, but - viewed in isolation - it is not sufficient. Violations of rules can occur anywhere in a company. Therefore, profound knowledge of organisational structures as well as of the interaction of functions and processes is indispensable in order to identify and define the requirements for an adequate compliance management system in the context of the company-specific risk landscape; on this basis, the right measures for setting up and implementing the CMS are then derived and implemented. In addition, knowledge and experience with other management systems are essential., such as risk or quality management systems, This is advantageous in order to ensure the necessary dovetailing of the systems in the company.
Eckart Achauer, studied law and business administration, postgraduate studies to become a Master of Business Administration (MBA). In-service training to become a European Quality Manager (DGQ), a mediator specialising in business mediation and a Certified Compliance Manager (TÜV).
He worked for around 10 years in the international insurance industry in the management of a Swiss insurance group in various functions (claims department, sales, assistance) before moving into management and business consulting in 1997.
As a consultant and managing director of various consulting companies, Mr Achauer has specialised thematically in organisational and process optimisation as well as in the development and implementation of management systems - quality management, risk and compliance management.
At Senator Executive Search Partners, Mr Achauer is responsible for the area of compliance management. Within the scope of compliance audits, he analyses their organisational "compliance fitness", he sensitises and trains the management, executives and employees and supports the companies in setting up and implementing individual compliance management systems. In doing so, he always takes into account the specific risk situation of the companies. Due to his many years of experience as a manager and consultant, he is very familiar with the entrepreneurial challenges from practice.
They are coordinators, communicators, problem solvers and (at best) interculturally competent: international managers. More and more often, cross-border tasks of internationally operating companies are assigned to them in order to cope with the increasing management complexity.
What tasks does an international manager have to face? What requirements must he fulfil and what expectations does he face?
International managers are primarily selected on the basis of their professional qualifications. They perform their tasks with extensive specialist knowledge, but the necessary cultural background knowledge is often disregarded when filling a position. Yet an understanding of different cultural mentalities is enormously important in order to work successfully with business partners from abroad. Completely wrong in this context is the assumption that all challenges can be mastered with a good knowledge of English. Mastering the respective national language for international tasks should not be underestimated. Certain nuances of communication can only be conveyed and understood in the mother tongue. Even a basic knowledge of the national language helps to create a pleasant atmosphere and to show that one is treating one's interlocutor with respect and at eye level.
In addition to the necessary language skills, international managers should also be able to work well with people who have different cultural backgrounds. This requires a lot of tact and a high degree of empathy. Everyone is influenced by the prevailing values and views of their own culture, and international managers are no exception. In business exchanges, one's own cultural background should by no means be transferred to one's interlocutors. It is much more important to look at a situation from the perspective of the other person, independent of one's own perception and evaluation.
Case study
The following case study shows you which mistakes an international manager can avoid if he knows the mentality and culture of his negotiating partners.
Thomas L. is an international manager and leads the cooperation negotiations of a German plant manufacturer with a company from Russia. In an initial conversation, he explains the upcoming procedures to the Russian colleagues, names milestones and defines processes. Since the Russian colleagues do not disagree, he assumes that both sides are in agreement. When asked, he learns a few weeks later that the cooperation partner has not carried out the steps and processes set or has not carried them out as apparently agreed. The Russian colleagues explain this with unexpected circumstances. Thomas L. is disappointed and wonders whether the behaviour is due to unreliability. With the necessary knowledge of the Russian mentality, Thomas L. could have avoided this situation. After all, the lack of objection from the Russian colleagues only means that nothing has been decided for them yet. Also, the very process-oriented execution of the explanations does not correspond to the more person-oriented Russian mentality. Nor would Thomas L. with the necessary cultural knowledge have wrongly assumed that the cooperation partners would inform him of delays on their own initiative. Concealing or glossing over negative events is part of the distinct culture of saving face in Russia and many other Central and East Asian countries in order to avoid painful confrontations for both sides. In addition, Thomas L. did not consider that he must also include in the process the time needed to build and maintain the business relationship.
With the right preparation for the cultural peculiarities of the Russian negotiating partners, Thomas L. could have avoided the unpleasant situation.
How is your intercultural competence?
Put your own intercultural competence to the test in our self-test. Our test does not determine a score on a scale, but rather aims to sensitise you to the various dimensions of intercultural competence.
Professional competence
How well do you know your own culture? Are you aware of the values and norms that apply? How well do you know the culture in your target country? What values and norms apply there? What is the historical background of the target country? Do you know the specifics of the target country? List the most important business characteristics of your home country and sort the characteristics in order of importance from 1 to 10. Check whether the characteristics are also valid in the target country and what numerical value they would have there.
Social competence
How do you deal with stress? Could you resolve conflicts in the destination country according to the cultural expectations there? Do you like the destination country and its inhabitants or do you have a negative attitude?
Self-competence
Do you know the paradigms that determine your world view? Which paradigms are culturally determined, which are subculturally determined? To what extent do the paradigms influence your self-image?
Action competence
Look at your own culture from a distance and try to analyse it. Can you take an independent perspective? What results does such an analysis give you for the target country? Do the results help you to consciously shape your encounter with the culture in the destination country?
In summary, it can be said that every country has economic, social and cultural peculiarities. In addition to language skills, observing these particularities is very important for every international manager in order to work successfully with business partners abroad. If you pay attention to the aspects we address in our blog post, this will pay off in your everyday work as an international manager. We wish you every success!
The complete series of articles "The Roles of an International Manager" by Sergey Frank was published online in the Neue Zürcher Zeitung and can be accessed HERE.
In addition, personnel consultant and best-selling author Sergey Frank already presented in a HANDELSBLATT COLUMN how companies best conduct themselves abroad.
The cooperation with personnel consultancies is appreciated by candidates and rated positively overall. This assumption was confirmed by the HR experts of HR Consult Group AG in a recent survey.
For the survey, 518,653 candidates who had already had contact with recruitment consultants were asked to answer 38 questions on the topic of "recruitment consultancy". More than 10,000 responses reflect for the first time a relevant opinion on the service and image of recruitment consultancies. Also, for the first time, candidates' wishes, ideals and actual conditions in dealing and working with recruitment consultancies were answered in open questions.
1. personnel consultancies as stakeholders and contact persons for candidates - a WIN - WIN situation!
The candidates surveyed have a very positive view of the cooperation with recruitment consultancies. An average of 76% said that recruitment consultancies find the right candidate for a company and represent the company's interests.
From the candidates' perspective, an average of 48% said that recruitment consultancies find the right job for them and represent their interests. It is worth mentioning here that almost two thirds of young candidates (18 - 34 years) see the HR consultancy as their stakeholder and optimal contact for their own job search.
Mr. MATTHIAS BARHAINSKI, authorised signatory of Senator HR Management GmbH, describes the image of personnel consultancies from his point of view as follows:
"It is recognisable that in times of digitalisation, the demands of companies on future employees and the demands of candidates on a new employer are becoming more and more extensive. As a personnel consultant, you are only successful if you meet both demands and, as a service provider, you are the one who represents the company to the outside world and the candidate to the company.
This is recognised above all by the young generation of specialists and managers. They know that a personnel consultant can represent the candidate more optimally and competently than they could themselves, especially when analysing the company's requirements, but also when negotiating with the company.
After graduating as an automotive engineer and industrial engineer, he began his career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and marketing strategy in North and South America.
In 1994 he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As managing director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
With his doctorate in the field of aptitude diagnostics, he ideally rounds off his fields of competence, especially with regard to personnel and management consultancy. The dissertation deals with the identification and proof of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on building networks and cooperation models as well as the continuous further development of systems and processes in HR consulting.
Within the last 20 years in personnel consulting, he has developed several brands that are still successful on the market today.
What was previously only an assumption has now been confirmed by our candidates in an extensive survey: They rate the cooperation with personnel consultancies positively overall and especially appreciate the consulting services offered.
For our current survey, we compiled 38 questions on the topic of "personnel consultancies". The aim was to obtain an up-to-date and comprehensive opinion on the service and image of recruitment consultancies. More than 10,000 candidates took part in this survey. In addition, the candidates surveyed were given the opportunity for the first time to contribute their wishes, ideals and personal experiences in dealing and working with recruitment consultancies.
Candidates would like to receive offers at least once a month
At 80 per cent, the vast majority of survey participants would like to be informed about new offers and career opportunities by a personnel consultant at least once a month or more often. More than a quarter of all respondents (27 per cent) would like to receive fairly intensive support (weekly contact), while for 23 per cent of the participants, information every fortnight is sufficient. Almost one third (30 percent) of all respondents would like to be informed about new career opportunities once a month by their HR consultant.
This preference is also confirmed in the more differentiated analysis according to different age groups: In all analysed age ranges, a monthly rotation was most frequently indicated as a wish, followed by a weekly information offer.
Our survey on the topic of "personnel consulting" goes even further. In addition to the frequency of contact, it is also important with which media and at what time our candidates can be reached. More about this in the next blog!
After graduating as an automotive engineer and industrial engineer, he began his career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and marketing strategy in North and South America.
In 1994 he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As managing director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
With his doctorate in the field of aptitude diagnostics, he ideally rounds off his fields of competence, especially with regard to personnel and management consultancy. The dissertation deals with the identification and proof of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on building networks and cooperation models as well as the continuous further development of systems and processes in HR consulting.
Within the last 20 years in personnel consulting, he has developed several brands that are still successful on the market today.
What was previously only an assumption has now been confirmed by our candidates in an extensive survey: They rate the cooperation with personnel consultancies positively overall and especially appreciate the consulting services offered.
For our current survey, we compiled 38 questions on the topic of "personnel consultancies". The aim was to obtain an up-to-date and comprehensive opinion on the service and image of recruitment consultancies. More than 10,000 candidates took part in this survey. In addition, the candidates surveyed were given the opportunity for the first time to contribute their wishes, ideals and personal experiences in dealing and working with recruitment consultancies.
E-mail still the top communication channel
With more than two thirds (67 percent), the vast majority of respondents prefer to be notified by e-mail by their recruiter. Still, 10 per cent of the candidates would like to be contacted by telephone. Just as many candidates do not prefer any of the available media. Only 4 per cent and 3 per cent of respondents would like to receive messages from their recruiter via social business networks or WhatsApp.
Preferred communication channels of the candidates
The right time is and remains an individual matter
A job change is often a step that should not be made public. The current employer should not hear anything about the job search until the new position is secure. The desire for discretion is also reflected in the answers of the candidates surveyed. 28 percent of all respondents would like to be contacted by phone only in the evening after 6 pm. At 40 per cent, the majority stated that their availability by telephone varied greatly. The fewest candidates prefer to be contacted by telephone from the morning (before 8 a.m.) until the afternoon (until 5 p.m.).
Preferred time to contact candidates
Mr Daniel Fertl, Head of Research at Senator HR Management GmbH confirms that it should be clarified with each candidate individually when and how contact should be made:
"Ask each candidate directly in the first interview how often and by what means they would like to be contacted if you have suitable vacancies for them or if you want to clarify important questions at short notice. Too frequent calls or emails may put the candidate under pressure, too little contact quickly gives the impression of carelessness. For you as a personnel consultant, it should therefore be a top priority to find out what the candidate prefers. This is then the basis for further cooperation."
After graduating as an automotive engineer and industrial engineer, he began his career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and marketing strategy in North and South America.
In 1994 he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As managing director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
With his doctorate in the field of aptitude diagnostics, he ideally rounds off his fields of competence, especially with regard to personnel and management consultancy. The dissertation deals with the identification and proof of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on building networks and cooperation models as well as the continuous further development of systems and processes in HR consulting.
Within the last 20 years in personnel consulting, he has developed several brands that are still successful on the market today.
The search for a new job is always an upheaval in life. Some candidates look forward to the new stage with joy, others with mixed feelings. A trusting relationship and a close personal bond with one's recruiter is therefore an important factor in the job search process. If the chemistry is right, the new job will certainly work out quickly.
This is confirmed by the current survey of the HR Consult Group on the topic of "personnel consultancies" with over 10,000 respondents. The answers to a total of 38 questions provide an up-to-date and comprehensive picture of opinions on the service and image of personnel consultancies.
Seriousness and trust are decisive factors
The survey results clearly confirm that a serious and trustworthy appearance of the consultant is of crucial importance. In all age groups surveyed, more than 80 percent of the participants stated that they place particular value on seriousness when working with a recruitment consultant. With almost 90 percent, the issue of seriousness is most important to the participant group over 45 years of age, followed by the age group 30 to 45 with 87.5 percent and the young target group (17 to 30 years) with about 83 percent. A similar result is also seen in the analysis points confidentiality and transparency. Both categories are most often rated as very important by the older candidates.
When it comes to personal contact, the result is also highest in the 45+ age group. Almost three quarters of the respondents stated that personal contact is particularly important to them. But the other candidates also attach great importance to a personal approach (73.5 percent among the 30 to 45-year-olds and 70.4 percent among the 17 to 30-year-olds).
Prompt placement is particularly important to younger and older candidates. Both among 17 to 30-year-olds and in the 45+ age group, more than 77 per cent said that a prompt placement was important to them. In the 30 to 45 age group, a speedy placement was of particular importance to only three quarters of the respondents.
30-45 year olds particularly interested in exciting offers
While the older analysis group is particularly interested in the topics of seriousness, confidentiality and transparency, the middle age group of 30 to 45-year-olds attaches particular importance to exciting offers. 84 percent said that regular information with exciting offers was important to them. The other two age groups are almost on a par here (82 percent in the 45+ age group, 81 percent in the young target group).
"Regardless of a candidate's age, a professional and trusting cooperation forms the basis for a successful and satisfying placement. It is important that job seekers feel comfortable with the support of a recruitment agency and perceive it as a reliable and serious partner. The first step is regular personal contact. In addition, communication should be kept as transparent as possible so that the candidate knows exactly what happens with his or her data and how the placement process works in detail," advises Mr Andreas Berger, Partner at Senator Executive Search Partners for the Consumer Goods, Digital & Online Business and Retail & Services sectors.
After graduating as an automotive engineer and industrial engineer, he began his career in the automotive industry in the areas of sales, development and marketing and also spent a year in Japan with one of the largest automotive suppliers.
He then moved to a world-renowned premium car manufacturer, where he was responsible for product marketing in Japan and South America and marketing strategy in North and South America.
In 1994 he decided to become self-employed and founded a personnel consultancy in Munich, where he has been driving development and expansion for over 20 years. As managing director, his industry focus is naturally on the automotive world as well as mechanical and plant engineering.
With his doctorate in the field of aptitude diagnostics, he ideally rounds off his fields of competence, especially with regard to personnel and management consultancy. The dissertation deals with the identification and proof of typical personality traits of engineers as well as the definition of development areas for a successful professional career.
These are scientifically derived and presented in the book "Eignungsdiagnostik im Praxiseinsatz".
At the same time, his focus is on building networks and cooperation models as well as the continuous further development of systems and processes in HR consulting.
Within the last 20 years in personnel consulting, he has developed several brands that are still successful on the market today.
