Where Does Compliance Belong

Organizations today grapple with numerous compliance requirements: safety, security, sustainability, privacy, quality, environmental, social, regulatory, and responsible AI practices. A fundamental challenge many face is determining where these compliance functions belong within the organizational structure.

As a result, these programs often end up relegated to the sides and corners of organizational charts.

Some leaders deliberately position compliance functions far from core operations, perhaps viewing them as necessary burdens rather than strategic assets. This approach is understandable but misses a deeper truth.

The difficulty in placing compliance programs stems from an intuitive understanding that effective compliance requires participation from every part of an organization.

Meeting obligations and keeping promises isn't solely the responsibility of a designated department; it's an essential property of every function across the business.

In this sense, compliance reflects the character of an organization rather than merely being one characteristic among many. It represents how the organization functions at a fundamental level.

No wonder we struggle with where to position compliance—it doesn't fit neatly into traditional hierarchical structures precisely because it must influence everything.

When considering compliance's proper place, we should recognize that it isn't analogous to a hand or foot of the business—appendages that perform specific tasks but can operate somewhat independently.

Instead, compliance functions more like the heart of an organization, circulating vital resources to every "cell" while removing harmful waste to maintain overall health.

Just as the heart regulates blood pressure to sustain life, compliance regulates business practices to ensure the life of the business.

It establishes the rhythm and ensures that resources, standards and requirements flow to every corner of operations.

This is where compliance truly belongs—not at the periphery but at the centre, the heart, of the business.

When positioned properly, compliance doesn't constrain an organization but gives it life to fulfill its purpose.

What do you think?