The European Business Review

THE CYCLE OF ESG AND COMPLIANCE

Traditionally, the compliance, or compliance and ethics, function has been thought of as one that focuses on preventing, finding, and fixing problems stemming from violations of laws and regulations. In some cases, the scope is narrower, dealing only with specific areas of the law, like corruption or antitrust. In others, a program may address a wide array of applicable laws. Either way, the focus is on laws and regulations that an organization is required to comply with as a result of the nature of business it is in.

What started out as goals that an organization would voluntarily announce, became expectations and commitments to which external stakeholders would hold them. ESG became much more than

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