This is the time and place for compliance practices.

08/30/2017

WARNING: This article was translated by an automatic translation system

In a scenario in which corruption has taken on worrying proportions and delaying the development of Brazil's economy, transparency is more than mandatory. Society as a whole has this duty, but the corporate world has an important part of responsibility to avoid unlawful acts. And it is within this context that compliance practices create form and gain more and more strength. This is directly linked to the ethics and sustainability of companies. But how?

First of all, we must contextualize. These programs, in general, serve to designate the efforts of the private sector to ensure compliance with legal and regulatory requirements related to its activities and to observe principles of ethics and corporate integrity. In addition to detecting, avoiding and treating any deviation or nonconformity that may occur within the organization.

The benefits of this type of program are numerous and impact in the most varied spheres of a company. Much more than mere compliance with standards, the scope of compliance is subordinated to the procedures for identifying, managing and mitigating corporate risks, with the aim of making the organization more efficient and profitable in a sustainable manner, taking into account the rules and avoiding reckless conduct . This type of program adds value insofar as it maximizes operational and economic results, which are achieved in accordance with the improvement of internal procedures. However, the advantages go further and can be measured by analyzing the cost that nonconformity generates. After all, the implementation of a compliance program within an organization also minimizes legal and court issues, reducing legal risks and related costs. The gains still end up being distributed among all, especially, advisers, executives and managers who will have their civil and criminal responsibilities protected.

Although Brazil is in line with the most rigorous and advanced legislation in the world in the fight against corruption, regulated by the Anti-Corruption Law (Law 12.846 / 13) and its specifying decree, the practice of implementing a compliance program is still very incipient between the initiative Private sector in Brazil, especially in the industrial sector. This is primarily due to the cost of the operation, which varies greatly depending on the size, structure, sector and activity of each company. Not to mention that the application of a suitable program is long and complex and includes a series of procedures. It is necessary to begin by reviewing the Code of Ethics and conduct; Institutional policies and procedures and to map risks. Only after these steps is the phase of developing practical monitoring and training methods and solutions, including effective communication processes directed at the organization's employees and partners.

While not an easy task, this type of project is feasible, yes. Termomecanica, for example, one of the largest private Brazilian industries operating in the copper and its alloys sector, has overcome this challenge and consolidated its Compliance System in 2016. Based on the Anti-Corruption Law, it implemented a series of measures that helped to comply with policies, standards, legislation, improve internal controls and adopt sound practices for operational risk management. All were involved and some employees were transformed into multiplier agents, with the mission of awakening in others a greater understanding of the importance of this program in the short and long term. At the same time, the Internal Audit area did a preventive work in financial and accounting operations, validating internal controls and supporting the systems of Compliance and Corporate Governance.

Apart from that, and what is not today, Termomecanica has a Code of Ethics and Conduct that regulates its attitude of intolerance to fraud and active or passive corruption in the activities and business carried out. The document shows, in a clear and objective way, that the organization does not admit any type of behavior that constitutes disrespect to the Laws. Therefore, SERASA and the Ministry of Labor and Employment ("Dirty List") are consulted regularly, in order to verify that suppliers and customers are in compliance with what determines the laws. After all, solid partnerships can only be established with organizations aware of their responsibilities. The Code also addresses the Competition Relations Policy, which is especially directed to employees in commercial areas. Among the orientations expressed in the chapter are aspects that show the expected behaviors of those who speak in their name in the market. For Termomecanica, it is inadmissible, for example, comments attributing defects in products or services of competitors, as a way of promoting the company.

In short, although the path is long and complex, in promoting policies of transparency, accountability, and social and environmental development, organizations gain internal and external credibility and trust, become more competitive in their segment and more attractive to new ones. investments, thus ensuring the sustainability of the business and the longevity of the corporation. Having a well-structured compliance program can be considered as an important differential.

Note: Automatic Translation Disclaimer: This article was translated by an automated system, without human intervention. Termomecanica São Paulo S.A. uses these automatic translations to help people who speak English and Spanish to take advantage of company news. Thus it is possible that it contains errors in grammar, vocabulary or syntax.