BAKU, Azerbaijan, October 20.
Compliance is an important factor increasing the value of
companies, Gunduz Karimov, Head of the Legislation and Legal Policy
Department of the Administration of the President of Azerbaijan,
said at a conference on Sustainable Business, Corporate Governance,
Risk, and Compliance (GRC) in Baku on Tuesday, Trend’s correspondent
reports from the event.
He remarked that compliance isn’t merely adherence to
legislative requirements; it’s a management mechanism that shapes a
company’s corporate culture, strengthens its competitiveness, and
creates long-term value.
According to him, compliance encompasses a set of policies,
codes of conduct, and a management approach that play a significant
role in a company's operations. Key areas within this framework
include risk management, the fight against corruption and bribery,
principles of ethical conduct, and transparent, fair corporate
governance.
Karimov noted that, following a company’s charter and founding
documents, the documents defining its compliance policy hold
particular importance within its management system.
"This is because these documents outline the company’s
objectives, principles, and the rules that must be followed during
its operations. A company with a compliance policy establishes open
and transparent relationships with suppliers, contractors,
government agencies, and other partners, and it does not shy away
from such relationships," he explained.
The department head emphasized that compliance also plays a
crucial role in shaping the company's internal culture. Sound
corporate governance, human resources development, professional
development for employees, knowledge management, and the study of
international best practices are among the key factors influencing
the development of this culture.
According to him, principles of transparency are applied more
extensively in companies where a compliance culture has been
established. In this regard, the voluntary consent of companies to
be included in the list of the country’s largest taxpayers can also
be viewed as an example of a culture of transparency and open
operations.
Karimov also touched upon the link between compliance and
competitiveness. He noted that while companies that do not adhere
to compliance principles might achieve higher revenue and turnover
in the short term, these advantages mayn’t be sustainable in the
long run.
"Adherence to compliance principles is essential for building a
long-term, sustainable company. In the absence of a compliance
culture and competition, the participation of such entities in the
economy also diminishes," he pointed out.
The department head added that compliance is also a factor that
creates economic value and contributes to capital formation. The
more properly and fairly the relationships among shareholders,
founders, and employees are structured within a company, the more
favorable the conditions become for increasing the enterprise's
overall value.
He stressed that compliance should not be viewed merely as a
legal obligation, but rather as a strategic approach that fosters
the company's sustainable development, transparency, and the growth
of its long-term value.
