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.