Report: Health care companies lead the way in corporate compliance

Health care companies are leading the way in terms of public trust and transparency, according to The Red Flag Group Compliance Pulse UK report.

Looking at 100 of the largest companies on the London Stock Exchange, including pharma companies AstraZeneca (LSE: AZN), GlaxoSmithKline (LSE: GSK), Shire (LSE: SHP) and Reckitt Benckiser (LSE: RB), compliance specialist The Red Flag Group carried out a review of their overall approaches to compliance. It investigated how the business world is addressing compliance and what other steps can be taken to improve corporate compliance. The research was based on eight criteria, including whether a code of conduct was publicly available, whether a Chief Compliance Officer (CCO) was identified and whether or not anti-corruption and whistleblower policies were in place.

Scott Lane, executive chairman of The Red Flag Group, said: “The past five years have been some of the most challenging that companies have ever faced. With the financial crisis compounded by a string of high-profile corporate scandals, public confidence in business institutions is at an all-time low. To determine the extent of the issue, we looked at all the information made available publicly by the largest 100 companies on the London Stock Exchange in regard to their compliance policies. We found that there has definitely been a response to the difficulties encountered over the past number of years. Organizations know they not only need to do more in terms of compliance, but they also need to be seen to be doing more. The issue of transparency and public trust is a major challenge.”