In recent years, Brazil has undergone significant regulatory improvements that have strengthened corporate governance practices. The Brazilian Corporations Law (Law No. 6,404/76) has been updated to reflect better global practices, and new laws, such as the Anti-Corruption Law (Law No. 12,846/2013) and the General Data Protection Law (LGPD), have been introduced to increase corporate accountability and personal data protection.
The capital market has played a significant role in this evolution, where the Brazilian Stock Exchange (B3) has played a crucial role in promoting corporate governance through the creation of differentiated listing segments, such as the Novo Mercado, Level 1, and Level 2. B3 encourages companies to adopt stricter governance practices in exchange for greater visibility and potential market value appreciation.
There is also the publication of the Brazilian Corporate Governance Code by the Brazilian Institute of Corporate Governance (IBGC), which has established clear and comprehensive guidelines for adopting good governance practices. This code serves as a guide for companies of all sizes and sectors, helping to align Brazilian practices with international standards.
The increase in transparency has made Brazilian companies increasingly committed to being accountable, with continuous efforts to improve the quality of information disclosed to shareholders and the market, including detailed financial reports, risk disclosure practices, and the adoption of sustainability reports (ESG – Environmental, Social, and Governance).
But everything starts with the commitment of the company’s leadership. When leaders demonstrate a strong commitment to compliance, it is reflected throughout the organization. One of the most cited points is the Tone from the Top, where leaders emphasize the importance of compliance and adhere to the established norms and regulations, setting an example for all employees.
Together, the application of consistent communication, where clear and frequent messages from senior management about the importance of compliance reinforce its value within the organization. Additionally, companies should value ethics and integrity, as it facilitates the implementation of compliance practices.
The effectiveness of compliance practices depends on employee engagement at all levels. An inclusive and participative organizational culture increases this engagement with the practice of continuous training that educates employees about compliance policies and the consequences of non-compliance, the adoption of open feedback with communication channels where employees can report compliance concerns without fear of retaliation.
