The Critical Role of Compliance in Corporate Governance

 

Corporate compliance is a hot-button issue for businesses around the world. Staying within the legal boundaries may seem like a simple thing to do, but keeping abreast of the changing legal landscape can be a daunting task.

Attorney Bruno Fagali is the founding partner of Fagali Advocacy and the Corporate Integrity Manager of Agencia Nova/sb, an advertising agency specializing in public interest communication. Fagali advocates for compliance and corporate responsibility beginning at the top, starting with the company’s executives.

Corporations must be compliant with labor laws, such as child and slave labor laws, and must provide oversight into the protection of employee rights. Corporations must also keep their various government licenses and registrations up-to-date. Failure to do so may result in business interruptions, impacting both the corporation itself and other businesses with whom they do business.

Prior to the passage of Brazil’s anti-corruption law (12.846/13), only individual, physical persons could be penalized for corruption, fraud in bidding, and similar infractions. With the passage of the new law, organizations could also be held accountable for their actions, and corporate compliance became a major component of corporate governance. Decree 8240/15 provided guidance for the creation of corporate ethics and compliance programs. This guidance extended to both public and private industries.

Recognizing that the corporation’s compliance initiatives also extend to the practices of their business partners, Fagali states that it is in the company’s best interest to avoid issues arising from both their own actions and their many business partners’ conduct.

Navigating the ever-changing legal climate can be a challenging task. The new anti-corruption law created the possibility of companies being penalized for activities harmful to the national or public interest. Fagali stresses that implementing corporate compliance initiatives is the best way to steer clear of government entanglements.

Fagali also pushes for compliance within the public sector. He is an advocate of government transparency, and he is a proponent of Brazil’s Federal Government Transparency Portal, which he contends will ensure the proper utilization of public resources for meeting the public’s needs and prevent corruption and fraudulent activities. Learn more: https://angel.co/bruno-fagali