What is compliance, and how is it measured in an organization?

Compliance refers to the organization’s adherence to mandatory and voluntary obligations, measured by evaluating its ability to meet these requirements effectively.

Definition:

Compliance involves implementing and monitoring actions and controls to fulfill legal, regulatory, and ethical obligations.

Measurement:

Requirements: Assessing the obligations the organization must meet.

Actions and Controls: Evaluating the mechanisms in place to achieve compliance.

Effectiveness: Verifying outcomes through audits, reviews, and monitoring.

Why Other Options Are Incorrect:

B: Avoiding disputes is a byproduct, not the definition of compliance.

C: Financial success is unrelated to compliance as a specific discipline.

D: Stakeholder satisfaction is broader than compliance metrics.