The Hidden Power of Compliance

Gadinis, Stavros; Miazad, Amelia

doi:10.2139/ssrn.3123987

Cited by 4 publications

(12 citation statements)

References 43 publications

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“…In fact, the fulfilment of all the rules and requirements that determine the purpose of the operation of state-owned enterprises is one of the issues-the deficiencies of which can give rise to the questionable validity of the given company. On the other hand, while the rules on the criminal liability of companies, as legal persons, and of executives and bodies have evolved significantly, prevention also plays a key role in the area of regularity [37]. The issue of adequacy and the development of the related control function at the legislative level in Hungarian law have mainly appeared in the field of credit institutions and insurance law for several years.…”

Section: Overview Of the Compliance Environment For Hungarian State-omentioning

confidence: 99%

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

Boros

Fogarassy

2019

Sustainability

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Our study deals with the control of Hungarian state-owned business associations in order to find out whether there is any correlation between corporate sustainability and compliance. According to our hypothesis, the state has a greater responsibility for the sustainable operation of state-owned enterprises—one of the tools of which can be the efficient construction of so-called compliance controls. A state-owned enterprise can be sustained in its operation and function by doing what it has been assigned to it as a task. The sustainable operation can be achieved through the use of circular feedback and continuous control. Corporate sustainability can be influenced by a number of factors that are crucial to the integrity and adequacy of companies. In our study, these are the Initial Hazard Factors (IHFs), Hazardous Increasing Factors (HIFs), and Control Enhancement Factors (CEFs), which were used in indexed form for testing. For the specific analysis, we used the Analytical Hierarchy Process (AHP) method to rank and evaluate risk avoidance options. We analyzed the practice of the State Audit Office of Hungary and its results and found that in the case of state-owned enterprises, the current Hungarian legal system does not contain uniform normative regulations that would regulate the control of conformity in a broader sense. As a result, corporate integrity and corporate compliance are also subject to a fragmented set of rules in different jurisdictions. This has a negative impact on the development of the company’s long-term, sustainable operating principles. Based on our research, a number of factors have been identified (including enterprise size and intensive use of EU funding resources) that may result in a loss of corporate sustainability but can be mitigated or even eliminated by creating an effective internal control environment. Based on literature analysis, most of the Hungarian phenomena are typical of the former socialist countries of Central Europe. The interpretation of sustainability—in transition management countries—for first-generation enterprises which were developed in a socialist market economy is quite different from the most developed countries of the European Union. The main reason for this is that generational rules do not yet exist.

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Section: Overview Of the Compliance Environment For Hungarian State-omentioning

confidence: 99%

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

Boros

Fogarassy

2019

Sustainability

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“…The Sarbanes-Oxley Act of 2002, which was a response to the Enron and WorldCom scandals (Krawiec 2003, p. 502;Haugh 2017Haugh , pp. 1231Tyler 2018, p. 35;Gadinis andMiazad 2019, pp. 2152-53), gave a strong impulse to adopt such 2 Founded by the Federal Reserve Act, it remains to this day a federation of regional reserve banks, covering 12 districts and coordinated by a central committee, the Federal Reserve board (now the Board of the Governors after the amendment of the Banking Act of 1935, which also introduced the Federal Open Market Committee).…”

Section: The Direct Benefitsmentioning

confidence: 99%

“…4 Securities Exchange Act, Sect. 4. programs, as did the Dodd-Frank Act in 2010, which was the answer to the world financial crisis provoked by the securitization of subprime mortgages in the United States (Haugh 2017(Haugh , p. 1233Gadinis andMiazad 2019, pp. 2153-54).…”

Section: The Direct Benefitsmentioning

confidence: 99%

“…8 From this perspective, corporate compliance is an essential element of risk management and its provision is seen as a standard (which implies the legal obligation must be decided case-by-case by an enforcement authority; see Kaplow 1992, pp. 561-62) in more complex business organizations (Gadinis andMiazad 2019, pp. 2163-64; see also Armour et al 2020, pp.…”

Section: The Direct Benefitsmentioning

confidence: 99%

“…66-67;Langevoort 2018b, p. 730;McGreal 2018, pp. 673-77;Gadinis andMiazad 2019, pp. 2157-63, for an analysis of the role of bad faith in Stone ex rel.…”

Section: The Direct Benefitsmentioning

confidence: 99%

See 2 more Smart Citations

Corporate Compliance on a Global Scale

2022

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Leaving aside the ethical implications of corporate compliance for managers and shareholders, this chapter examines only its material effects. (For a summary of the various motivations for compliance highlighted by the doctrine see, ex multis, Parker and Nielsen 2012, pp. 430-35.) Specifically, the main goal of this chapter is to point out that the positive and negative effects of compliance for corporations are not only those normally perceived as the result of the application of the relevant rules and that the consequences of compliance policies for corporations seem to be wider than is normally considered.In general, corporate compliance within (complex) business organizations is a matter of monitoring whether the employees and directors are following the laws, regulations, standards, and ethical practices that management has adopted for ensuring that certain specific norms are respected.

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The Direct and Indirect Effects of Corporate Compliance

Palmieri

2021

Corporate Compliance on a Global Scale

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The Hidden Power of Compliance

Cited by 4 publications

References 43 publications

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

Corporate Compliance on a Global Scale

The Direct and Indirect Effects of Corporate Compliance

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