This research reports on the current situation of compliance management among business organisations. Compliance management aims to ensure that all participants of a company observe laws and regulations. It is a business process to help the management and the employees to meet requirements and governance guidelines. The following research aims to increase the awareness of compliance management in companies and among the society to decrease business crime and ethical and legal offences. Therefore, the dimension of compliance management is discovered in this work.
The first result is that the extension of the topic compliance management is very low. Mostly, just bigger and international companies have already implemented a compliance management as smaller companies suffer under the high costs of the implementation. Different standards evaluated by various institutions provide orientation on how to do responsible business by complying with these standards. It is suggested that compliance management is to be seen beside risk management and ethics, more, compliance management should be seen as requirement for risk management and ethics. A comment way of implementing a compliance management into the structures of the company´s business is proposed. In this context the GRC – Governance-Risk-Compliance - approach is introduced. As the implementation of compliance management is a very costly process, companies need to be motivated by benefits of this process. In this research the avoidable costs and the return on investment are named to be the biggest benefit of compliance management. To get an idea of how a compliance management process might look like, two frameworks are distinguished with the necessary steps that need to be considered. The management and the employees are considered to the most important part of companies. Therefore, also in terms of compliance management the people involved are the source of success.
To narrow the research, its focus is put on the analysis of the tourism industry in Germany. Compared to the generalisation, extreme differences cannot be determined in terms of compliance management. Confirmed is the aspect that the number of big companies implementing a compliance management is higher than the number of small companies.
Table of Contents
1. Introduction
1.1 Purpose
1.2 Issue Context
1.3 Aims and Objectives
2. Literature Review
2.1 Principles of Compliance Management
2.1.1 Definition
2.1.2 Background
2.1.3 Standards
2.1.4 German Standards
2.2 Compliance Management System
2.2.1 Dissociation of Risk Management and Ethics
2.2.2 Implementation
2.2.3 Motivation – Benefits and Costs
2.2.4 Framework
2.2.5 Factors of Success
2.3 Compliance Management System in the Tourism Industry
2.3.1 Tourism Industry
2.3.2 Extension
2.3.3 Framework
2.3.4 Best Practice
2.4 Summary of Literature Review
3. Methodology
3.1 Introduction
3.2 Identifying a Topic (Justification)
3.3 Research Approach
3.4 Formulate a plan
3.5 Techniques and Methods
3.5.1 Collecting Secondary Data
3.5.2 Collecting Primary Data
3.5.3 Research Ethic
3.5.4 Analysing Data and Presenting Findings
3.6 Strengths and Limitations
4. Data Analysis and Interpretation of Findings
4.1 Introduction
4.2 Consultancy firms’ perception of Compliance Management
4.3 Sample Companies
4.3.1 Operator: Hotel Reservation Service
4.3.2 Transportation: Aviation Lufthansa Group
4.3.3 Accommodation: Kempinski Hotels
4.4 Compliance Management of Sample Companies
4.4.1 Importance
4.4.2 Motivation
4.4.3 Implementation
4.4.4 Framework
4.4.5 Factors of Success
4.5 Summary of Primary Research
5. Conclusion and Recommendation
5.1 Conclusion
5.2 Companies Recommendation
5.3 Further Research Recommendation
Research Objectives and Core Themes
The core objective of this research is to identify the critical success factors for compliance management systems and to examine their practical impact on business operations within the German tourism industry. Through a combination of literature review and empirical analysis of selected companies, the study aims to clarify the awareness and implementation challenges currently faced by firms in this sector.
- Theoretical principles and definitions of compliance management.
- Evaluation of compliance implementation frameworks and costs.
- Analysis of the German tourism industry's current compliance maturity.
- Examination of the role of leadership and employee training as success factors.
- Case study comparisons of major industry players (Lufthansa, Kempinski, HRS).
Excerpt from the Book
2.2.3 Motivation – Benefits and Costs
After analysing the best way of implementing a compliance management system, the big question is, why a company should implement a compliance management system, hence, what are the effects, especially the benefits of a compliance management system that motivate a company of an implementation.
The international bar association Illinois Bankers Association, a global leading organisation for legal practitioners, bar associations and law societies, formulated seven benefits a company can gain with an implemented compliance management system (IBA 2012, p. 5):
"Save money by averting and fixing compliance problems before they become issues – especially compared to the costs of later remediation"
"Demonstrate management's commitment for a strong compliance culture to your regulators and directors"
"Establish a strong, positive tone at the beginning of exams and provide a meaningful communication format with examiners during exams"
"Identify existing risks before your examiners do"
"Effectively allocate resources to improve operational efficiencies"
"Provide dynamic procedures for your employees to meet ongoing and new regulatory challenges"
"Strengthen your [...] business model by accurately knowing your regulatory strengths and weaknesses".
Summary of Chapters
1. Introduction: Outlines the purpose of the research, the significance of the topic in the business environment, and the defined project objectives.
2. Literature Review: Provides a comprehensive academic overview of compliance management definitions, standards, implementation frameworks, and specific industry applications.
3. Methodology: Details the seven-step research process, the use of the "research onion" approach, and the techniques for data collection and ethics.
4. Data Analysis and Interpretation of Findings: Presents primary empirical data through interviews and case studies of major industry firms, comparing findings with the theoretical literature.
5. Conclusion and Recommendation: Synthesizes the final results, providing actionable recommendations for companies and identifying potential areas for future research.
Key Keywords
Compliance Management, Tourism Industry, Governance, Risk Management, Corporate Ethics, Implementation Framework, Success Factors, Business Performance, Regulatory Compliance, Lufthansa Group, Kempinski Hotels, Hotel Reservation Service, Internal Controls, Compliance Culture, Data Protection.
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation examines the factors that constitute a successful compliance management system and explores how such systems influence business operations, with a specific focus on the German tourism sector.
What are the primary themes discussed?
The research explores theoretical compliance frameworks, the business case for compliance (benefits vs. costs), industry-specific challenges, and the role of organizational culture in maintaining compliance.
What is the central research question?
The primary research question seeks to identify what makes a compliance management system successful and how the presence of such a system affects a company's overall business health and risk profile.
Which scientific methods were applied?
The author utilized a mixed-method approach: secondary research via literature analysis and primary research through qualitative interviews and observation of specific corporate case studies.
What is covered in the main body of the work?
The main body covers the conceptualization of compliance, a detailed literature review of frameworks, and an analysis of the practical application of these concepts within three case-study companies in the tourism industry.
Which keywords define this research?
Key terms include Compliance Management, Governance, Risk Management, Tourism Industry, Corporate Culture, and Strategic Implementation.
How does the Lufthansa Group integrate compliance?
Lufthansa employs a structured GRC (Governance-Risk-Compliance) approach, including an ombudsman system and regular online training to ensure employees adhere to corporate guidelines and legal standards.
Why do small companies often struggle with compliance?
Smaller companies often perceive compliance as prohibitively expensive and lack the regulatory pressure or dedicated administrative infrastructure that larger, publicly traded firms possess.
What is the significance of the "Compliance Cycle"?
The compliance cycle, as analyzed in the literature, represents an iterative process of identification, assessment, implementation, and continuous monitoring necessary to keep a compliance system effective over time.
- Citar trabajo
- Irina Luxem (Autor), 2015, What are the factors that make a successful compliance management system and how does a compliance management affect the company´s business?, Múnich, GRIN Verlag, https://www.grin.com/document/303216
