In recent years, Brazil has undergone significant regulatory improvements that have strengthened corporate governance practices. The Brazilian Corporation Law (Law no. 6,404/76) has been updated to reflect global best 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 responsibility and the protection of personal data.
The capital market plays an important part 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 Novo Mercado, Level 1 and Level 2, B3 which encourages companies to adopt more rigorous governance practices in exchange for greater visibility and potential for market appreciation.
There is also the publication of the Brazilian Code of Corporate Governance, by the Brazilian Institute of Corporate Governance (IBGC), which established clear and comprehensive guidelines for the adoption of good governance practices.
Increased transparency has made Brazilian companies increasingly committed to accountability and there is a continuing effort to improve the quality of information disclosed to shareholders and the market, including detailed financial reporting, risk disclosure practices and the adoption of sustainability reports (ESG (Environmental, Social, and Governance).
But it all starts with the commitment of the company leadership.When leaders demonstrate a strong commitment to compliance, this is reflected throughout the organization. It is one of the most cited points Tone from the top (Tom from Above), where leaders emphasize the importance of compliance and adhere to the rules and regulations set 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.In addition, 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 participatory organizational culture increases this engagement with the practice of continuous training that educates employees about compliance policies and the consequences of noncompliance, the adoption of open feedback with communication channels where employees can report compliance concerns without fear of retaliation.
