To ensure legal compliance, a company should develop what type of program?

A compliance-based ethics program is focused on ensuring that a company adheres to legal standards, guidelines, and regulations. This type of program typically includes specific policies and procedures that align with laws relevant to the business sector. It often incorporates training employees on legal obligations, monitoring adherence to laws, and implementing controls to help the organization remain compliant.

The importance of a compliance-based ethics program lies in its proactive approach to prevent legal issues by creating a clear framework for expected behaviors and practices. Such a program can help mitigate the risk of violations that could lead to legal penalties or reputational damage.

While values-based ethics programs emphasize guiding employees based on the core values of the organization, they do not specifically focus on legal compliance. Performance management programs aim to optimize employee performance and productivity but do not inherently address compliance needs. Risk assessment programs help identify potential risks within a company, but they are not the same as establishing a clear compliance framework to ensure adherence to legal standards. Therefore, a compliance-based ethics program stands out as the most effective means to ensure legal compliance within an organization.