compliance

kum-PLY-uns /kəmˈplaɪəns/
nounC1GRETOEFLIELTS
formalbusiness

The action or fact of complying with a wish or command; in business, adherence to rules, regulations, and standards.

In a business context, compliance refers to the act of conforming to established laws, regulations, industry standards, and internal policies. It's about ensuring that operations are conducted legally and ethically.

The story behind the word. The word 'compliance' comes from the Latin 'complere,' meaning 'to fill up, to complete.' This root also gives us words like 'complete' and 'accomplish.' So, to be in 'compliance' means to 'fill up' or 'complete' all the requirements of a rule or law, leaving no gaps in adherence.

Word relationships

  • adherence: Sticking to rules or principles, often used interchangeably.
  • conformity: Acting in accordance with standards or rules, can sometimes imply a lack of independent thought.
  • observance: The act of following a law, custom, or duty.
  • non-compliance: Failure or refusal to comply.
  • violation: An act of breaking a law or rule.

Commonly confused with

  • obedience: 'Obedience' often implies following direct orders from an authority figure, while 'compliance' refers to adhering to a set of rules, laws, or standards, which may be more impersonal.

Word family

  • comply (verb): To act in accordance with a wish, command, or rule.
  • compliant (adjective): Meeting or in accordance with rules or standards.

Collocations

  • regulatory compliance
  • legal compliance
  • tax compliance
  • data compliance
  • ensure compliance
  • compliance officer

Example sentences

  • "The bank invested heavily in new software to ensure full compliance with the latest anti-money laundering regulations." Regulatory compliance in finance.
  • "Achieving environmental compliance was a major challenge for the factory, requiring significant changes to its waste disposal processes." Environmental compliance.
  • "All employees are required to undergo annual training on data privacy compliance to protect sensitive customer information." Internal compliance policies.

Memory hook

COMPLIANCE means you COMPLETE all the requirements. Complete requirements

When not to use

Don't use 'compliance' for simply following advice or a suggestion; it implies adherence to formal rules or obligations.

Fun facts

  • The field of 'compliance' has grown significantly in recent decades, especially in regulated industries like finance and healthcare, due to increasing legal and ethical demands.
  • Many companies now have dedicated 'compliance officers' or entire departments to manage regulatory adherence.

Related words

audit, GAAP, internal control

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