What is "compliance"?

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In starting ROI Business English here in Canada, there are certain steps that have to be completed. As you know, there are rules and regulations regarding setting up a business. The following of regulations is called 'compliance': a very common and important formal business term.

In our discussion, maybe it is best to start with the verb 'to comply'. You can comply with your company policy or comply with any authority when you do what they say or follow their rules. In legal language, you may see the phrase, 'Failure to comply with X will result in B' as in, " Failure to comply with the terms of our contract will result in a penalty". In the news, the police might claim they ordered a car to stop, but the driver did not comply. Remember, this is a rather formal term and not used in casual, family or friendship situations.

As a noun, compliance, you might see the idiom, ' to be in compliance with' as in, " We are in compliance with all environmental regulations." You may also have a compliance department if you work at a large company in a heavily regulated industry.

Creating my small company, I had to comply with the taxation department (The CRA or Canadian Revenue Agency, similar to the IRS in the US) and register a business name and number. My small company is now in compliance and ready to do business.

What kind of rules and regulations do you have to comply with?