Let's dive right in by asking the first question. What is compliance? Well, at the simplest level, compliance means obey. Compliance generally relates to a law, rule, regulation or some other standard that tells you what to do, or how to behave. In some cases, compliance tells you what not to do or how not to behave. It seems pretty easy. Don't drive until you have a driver's license, file your tax return or request an extension by April 15th each year. But beyond the level of an individual compliance with these specific rules in their daily lives. Compliance in the business world is generally something different. It's a formal program within an organization or a company that identifies what are the specific rules that are applicable, and a compliance program will establish a framework or strategy to make sure that the organization adheres to those rules that apply. Will return to this in much greater detail throughout this course. Every single organization and company, every single industry and profession has to deal with compliance. Try to think of a job where there are no rules, where there is nothing that you need to be compliant with. I suspect you can't. How about sports, for example. On the collegiate level, the NCAA has numerous rules and regulations that require compliance with. Even the number of hours you can actually practice, in professional sports, while you may be able to steal a base are assigned in baseball, there are actually a 161 pages of rules that you do need to be in compliance with. The National Football League has recently developed the detailed compliance program addressing everything from gambling, anti-corruption and insider trading to conflicts of interest, use of social media, gifts, entertainment privacy and many other topics. NFL commissioner, Roger Goodell wrote a letter to all members of the NFL, specifically stating, "The compliance officers should be advised promptly of any information concerning possible violations of the law or this compliance plan by any employee of the NFL." So let's leave the grid iron and go into space. How about astronauts? Are they subject to compliance? Well, actually NASA has a code of ethics. There are even specific compliance requirements if you're headed to the International Space Station. Back on Earth, and a far more mundane topic, take the lending industry. Federal law requires specific disclosures to appear in any advertising of loans, even advertisements made through mobile applications. Some states, like California, for example, requires specific lending licenses before you can originate a loan, and such licenses subject the lender to regulatory examinations and numerous other requirements. For any employer, certain federal rules are going to apply including: tax requirements, fair labor standards for employees, etc. Federal laws are just one source of compliance obligations. State and local laws also must be considered. For example, federal law does not impose any requirements that employers offer employees breaks throughout the workday. But in California, employees must be given half an hour break for every five hours and also another 10-minute break for a subsequent four-hour period. Requirements are also very often industry specific and may come from an industry standard rather than a specific rule. Take the garment industry where the Social Accountability International Standard has developed the essay 800. A standard to combat problems of sweatshop factories around the world. Even those industry develops standards trigger substantial compliance obligations. In the pharmaceutical industry, the automotive industry in advertising financial services, the Armed Forces, politics and almost all other areas, there's a need to identify, manage, and monitor compliance issues. All told everyone, regardless of their title, stature, experience, and years paycheck, has compliance responsibilities. Now to be fair, sometimes it's not called compliance or has not traditionally been thought of as compliance. That's what's gotten some people and companies into legal and even criminal problems. But make no mistake, the existence and the importance of compliance in a job, should be considered up there with the inevitability of death and taxes. Take a look at these people, a doctor or a nurse, a football player, an astronaut, a fashion executive, or a manager of a public company, a power plant operator, they all have to be aware of some regulations and they're also required to adhere to them.
