What must policies clearly explain regarding non-compliance?

Policies regarding non-compliance must clearly explain the consequences for non-compliance because this provides transparency and sets clear expectations for all employees. Understanding the repercussions of failing to adhere to established standards is crucial for fostering a culture of compliance within an organization. When employees are aware of what happens in the event of non-compliance, they are more likely to adhere to the policies set forth, thereby minimizing risks and maintaining high operational standards.

In addition, outlining consequences serves as a deterrent against unethical behavior and encourages accountability within the workforce. It ensures that everyone understands the seriousness of compliance issues and what is at stake should policies be violated. This clarity helps organizations to mitigate potential legal and financial risks stemming from non-compliance, which can have significant negative impacts on their operations and reputation.