Many companies are completely unaware of the importance of compliance when it comes to translating their content and documents. However, those who fail to keep pace with the latest developments in this area can quickly end up in tricky legal situations. This also applies to the Whistleblower Protection Act, which has now come into force. We chat with Kirti Sawhney-Kersten, the compliance expert at ACT Translations, about the pitfalls that can get in the way of legally compliant translations, specific industries that are trailblazers in this area, and how companies can benefit from compliance translations.
What makes translations in the field of compliance different?
Compliance involves defining the necessary rules to ensure legally compliant behavior. Directives for this purpose exist at national and European level and must be observed. For translations in conjunction with compliance, one of the key priorities is to ensure that you comply with all applicable directives and laws when marketing your products abroad. However, it is just as important to act in accordance with your country's domestic directives and laws. To make this possible, all employees must always have a clear understanding of the current legal situation.
So compliance translations are a very broad field?
In the beginning, it can be hard to understand what exactly compliance involves. The Whistleblower Protection Act, which came into force at the beginning of July, is currently a major topic. We have been following the process from the very beginning together with our partner EQS—a pioneer in the development of systems for whistleblower protection. The focus here is on protecting people who anonymously report irregularities in their companies. This calls for a system that employees can use in confidence to draw attention to compliance violations within the company. This system must be available in all languages that are relevant to the company so that all employees have an equal opportunity to stand up for compliant behavior within the company. The reports received are then translated into the relevant national language for further processing. To ensure that whistleblowers can feel safe, only they, the compliance officers, and the translators have access to the content of the reports.
Whistleblower protection is a particularly sensitive area. But where else does compliance play a role in the everyday lives of translators?
In addition to this type of whistleblowing system, every company—regardless of its size—will have documents for which translations that meet compliance requirements are of great importance. For example financial reports, audit reports, codes of conduct, and annual reports. Parts of these may be published in different languages to set a good example in terms of transparency while also appealing to new business partners. This is an area that many people are not aware of: compliance is part of the corporate culture and therefore part of everyday translation work.
Are you saying that companies are often not even aware of the importance of compliance?
Yes, this is something we see time and again when talking to our clients. We have to start by explaining all the things that are covered by compliance. At present, every company with 250 or more employees is required to implement a whistleblower reporting system. What many people don’t realize is that from December 17, 2023, this law will also apply to companies that have 50 employees or more. This also means that the issues of compliance will take on a completely different macroeconomic dimension. Apart from this, employers can use their adherence to compliance to promote their employees’ participation in and identification with the company, thereby creating a stronger internal company structure and making themselves more interesting as employers. Compliance offers companies an opportunity to behave ethically and foster a culture of “speaking up”.
Are some industries more sensitive than others? Are there any trailblazers?
Of course, there are particularly sensitive areas such as the pharmaceutical industry or medical technology. Translations for medical technology labeling, in particular, must be completed according to special standards, as even the smallest translation errors can have a serious impact on the users of the translated documents. As a company, we are also specially certified for these cases. For this type of sensitive content, translations are carried out using the dual-control principle and demand a certain level of expertise from all the translators involved. Clients in these industries are—understandably—also particularly vigilant and very aware of the issue of compliance.
Are there also industries where compliance plays a lesser role?
Since compliance also covers everything to do with finance, for instance, it is relevant for every company, regardless of the industry. We translate financial reports for clients across a wide range of industries, and these reports are important for all companies above a certain size. Considering companies that sell tools, for example—here too, the operating instructions must be correctly translated. If they describe an incorrect operating procedure, this may lead to accidents and liability claims. To counter this, it makes good business sense to insist on translations that meet compliance requirements.
What do companies need to bear in mind to avoid neglecting the topic of compliance in a linguistic context?
We work with around 2,500 translators and each and every one of them has undergone a rigorous qualification process. They have all completed a test translation, are native speakers of their respective target languages, and have a university degree in the languages and subject areas in which they specialize. For translations of particularly critical or sensitive content, we also offer the option of dual-control translation. In addition—and this is what sets us apart from other service providers—we have an internal quality assurance department that also carries out final checks of all translations to ensure that they meet all language and client-specific requirements.
For whistleblower reporting systems, we even offer translators who are based within the EU or EEA. This is another security aspect that we are happy to offer our clients. Our servers are all located in Germany or Europe, which guarantees special protection for data and privacy rights. As a result, compliance is always a holistic system, a puzzle comprising many pieces, and each one has to fit.
