{"id":7241,"date":"2021-06-30T08:13:31","date_gmt":"2021-06-30T06:13:31","guid":{"rendered":"https:\/\/winheller.com\/blog\/en\/?p=7241"},"modified":"2024-07-04T12:45:38","modified_gmt":"2024-07-04T10:45:38","slug":"compliance-avoiding-liability-germany","status":"publish","type":"post","link":"https:\/\/winheller.com\/blog\/en\/compliance-avoiding-liability-germany\/","title":{"rendered":"Compliance: Avoiding Liability Traps in German Companies"},"content":{"rendered":"<p><a href=\"https:\/\/winheller.com\/blog\/en\/wp-content\/uploads\/2021\/06\/compliance-avoiding-liability-germany.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-7242\" src=\"https:\/\/winheller.com\/blog\/en\/wp-content\/uploads\/2021\/06\/compliance-avoiding-liability-germany.jpg\" alt=\"Compliance: Avoiding Liability Traps in German Companies\" width=\"400\" height=\"307\" srcset=\"https:\/\/winheller.com\/blog\/en\/wp-content\/uploads\/2021\/06\/compliance-avoiding-liability-germany.jpg 400w, https:\/\/winheller.com\/blog\/en\/wp-content\/uploads\/2021\/06\/compliance-avoiding-liability-germany-300x230.jpg 300w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a>In simple terms, compliance means adherence to or conformity with rules. The term is used as a synonym for the organizational and supervisory measures within a company that are conducive to <a href=\"https:\/\/www.winheller.com\/en\/business-law\/compliance.html\" target=\"_blank\" rel=\"noopener\"><strong>compliance<\/strong><\/a> with applicable laws, guidelines and other (voluntary) regulations in Germany.<\/p>\n<h2>Compliance is relevant for all companies in Germany<\/h2>\n<p>This rather abstract paraphrase demonstrates the significance of compliance because every company has <strong>multiple points of contact<\/strong>: There are compliance-relevant points of contact both within the company in the daily work routine and in interaction with the outside world (such as with business partners or (tax) authorities).<\/p>\n<h2>Severe penalties for compliance violations<\/h2>\n<p>If compliance with German rules and laws is not ensured by appropriate (organizational and structural) measures, there is a risk of<\/p>\n<ul>\n<li>fines and penalties pertaining to the persons involved<\/li>\n<li>personal (unlimited) civil liability of the acting organs (including executive employees)<\/li>\n<li>ineffectiveness of concluded contracts<\/li>\n<li>damage to image and reputation<\/li>\n<li>discontinuation from large corporations\/suppliers\/authorities<\/li>\n<\/ul>\n<h2>Sustainable prevention of liability risks<\/h2>\n<p>The importance of functioning compliance structures is now also becoming increasingly clear to smaller and medium-sized companies and enterprises &#8211; against the backdrop of the current external influencing factors and media-effective liability cases involving managers of larger groups as well. Functioning compliance structures can <strong>prevent liability risks<\/strong> within the company and for executives (personally) <strong>in the long term<\/strong>.<\/p>\n<h2>Individual compliance structures for each company<\/h2>\n<p>Compliance systems are, however, a &#8220;living&#8221; product and cannot simply be &#8220;imposed&#8221; on any corporate organization as they need to be <strong>adapted<\/strong> to the respective business field and the respective company or corporate structure on a case-by-case basis in order to achieve <strong>effective liability prevention<\/strong>.<\/p>\n<p>Yet, what are adequate compliance structures and what does a functioning compliance system in Germany look like? WINHELLER&#8217;s experts will be happy to advise you on measures to be taken in your company.<\/p>\n<p>Continue reading:<br \/>\n<a href=\"https:\/\/www.winheller.com\/en\/business-law\/compliance\/management-systems.html\" target=\"_blank\" rel=\"noopener\"><strong>Compliance Management Systems in Germany<\/strong><\/a><br \/>\n<a href=\"https:\/\/winheller.com\/blog\/en\/compliance-management-structures-germany\/\" target=\"_blank\" rel=\"noopener\"><strong>Compliance Management Structures in Germany: An Indispensable Tool For Release From Liability<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In simple terms, compliance means adherence to or conformity with rules. The term is used as a synonym for the organizational and supervisory measures within a company that are conducive to compliance with applicable laws, guidelines and other (voluntary) regulations in [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":7809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1722],"tags":[],"class_list":["post-7241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/7241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/comments?post=7241"}],"version-history":[{"count":3,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/7241\/revisions"}],"predecessor-version":[{"id":7419,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/posts\/7241\/revisions\/7419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/media\/7809"}],"wp:attachment":[{"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/media?parent=7241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/categories?post=7241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/winheller.com\/blog\/en\/wp-json\/wp\/v2\/tags?post=7241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}