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Regulatory Approaches to Promoting Corporate Compliance

In: An Introduction to Corporate Compliance

Author

Listed:
  • Ruihua Chen

    (Peking University, Law School)

Abstract

Corporate compliance refers to a system of risk prevention and control established by enterprises to avoid or mitigate violations of laws and regulations. Generally, companies may develop compliance management systems through two primary pathways. The first is a proactive approach, whereby the enterprise voluntarily initiates compliance efforts—motivated by the pursuit of competitive advantage, expanded business opportunities, or fulfillment of corporate social responsibility. The second is a reactive approach, in which the enterprise is prompted by the supervision, guidance, or pressure of administrative authorities, judicial institutions, or international financial organizations to establish a compliance framework, often through remedial measures in response to misconduct. These two modes of compliance development may be broadly categorized as autonomous compliance and externally driven compliance.

Suggested Citation

  • Ruihua Chen, 2026. "Regulatory Approaches to Promoting Corporate Compliance," Springer Books, in: An Introduction to Corporate Compliance, chapter 0, pages 243-271, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-7257-1_8
    DOI: 10.1007/978-981-95-7257-1_8
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