What to Look For When Evaluating a Company’s Compliance Practices

For independent contractors aiming to maintain their professional integrity and set themselves up for long-term success, partnering with reputable companies is essential. One important factor to consider when choosing a company to work with is how seriously they take compliance with industry regulations and standards.

How can you tell if a company truly values compliance? Here are six ways to assess their commitment to upholding industry standards and protecting their independent contractors.

1. Review Company Policies and Procedures

Start by reviewing the company’s compliance policies and procedures. A reputable company will have clear, easy-to-access guidelines that show how they follow legal and regulatory requirements. Check for key documents like their code of conduct, ethics policies, and internal audit processes—these can give you a sense of how committed they are to ethical practices.

If their policies are well-organized and straightforward, it shows that they take compliance seriously. But if the documents are vague or hard to find, it might be a red flag. Asking for these details upfront is a simple way to get a feel for how transparent and accountable the company is.

2. Assess Leadership Involvement

Leadership plays a crucial role in setting the tone for compliance within a company. Executives who actively champion compliance efforts create a culture of accountability that resonates throughout the organization. Pay attention to how leaders talk about ethics and compliance—do they treat it as a priority?

Positions like Chief Compliance Officer or an established ethics committee suggest that compliance is a priority for leadership. Don’t shy away from asking your contacts within the organization about their approach to these issues. If they’re open and proactive in discussing ethical practices, it’s a good sign that compliance is genuinely valued across the company.

3. Analyze Training and Development Programs

Another good indicator of a company’s commitment to compliance is how they approach training and development. Ask how often they offer compliance training and what the sessions cover. Companies that prioritize compliance will provide regular, comprehensive training to ensure everyone stays updated on the latest regulations and best practices.

Effective training should be engaging, relatable, and centered around real-world scenarios that require ethical decision-making. When a company goes beyond the basics and actively fosters a culture of compliance, it demonstrates a true commitment to upholding high standards.

Learn More: 5 Ways to Find Your Ideal Client As a Small Business

4. Investigate Regulatory History

Checking a company’s regulatory history can offer valuable insights into their commitment to compliance. Look for any past violations or penalties, which are often available through public records or industry-specific databases. A quick background check can help you spot potential issues and assess how well they follow industry standards.

Frequent compliance issues could signal deeper problems within the organization. On the other hand, a clean record suggests they’ve been playing by the rules and are likely to continue doing so. Doing this research gives you a clearer picture of how much emphasis the company puts on compliance and whether they’re likely to stay on track moving forward.

5. Seek References and Feedback

Talking to current or former employees can provide valuable insights into a company’s compliance culture. Tap into your network or use platforms like LinkedIn to connect with people who’ve worked there. Ask about their experience with compliance practices and whether they felt ethical standards were truly valued.

Personal stories can offer a deeper look into how compliance is handled on a day-to-day basis. These firsthand accounts often reveal more than formal documents, giving you a clearer understanding of whether the company genuinely prioritizes compliance. This clarity helps you approach your next client or project with greater confidence.

6. Evaluate Third-Party Partnerships

You can gain further insights by assessing how the company manages its third-party relationships. A robust compliance program should extend beyond internal operations to include careful oversight of external partners, such as vendors or suppliers.

Also, consider how the company vets and monitors its third-party partners. An organization committed to compliance will have a clear process, including background checks, compliance audits, and regular evaluations. Ongoing oversight of external relationships shows a true commitment to compliance at every level. That’s the kind of partner you can trust to build strong relationships and help support your business growth.