In recent years, Brazil has undergone significant regulatory improvements that have strengthened corporate governance practices. The Law of Corporations (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 enhance corporate responsibility and personal data protection.
The capital market plays an important 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, the B3 which encourages companies to adopt more rigorous governance practices in exchange for greater visibility and potential for appreciation in the market.
The publication of the Brazilian Corporate Governance Code by the Brazilian Institute of Corporate Governance (IBGC) still exists, which established clear and comprehensive guidelines for the adoption of good governance practices. This code serves as a guide for companies of all sizes and sectors, helping to align Brazilian practices with international standards.
Increased transparency has made Brazilian companies increasingly committed to accountability and there is an ongoing effort 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 begins 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 mentioned points is Tone from the Top, where leaders emphasize the importance of compliance and adhere to established rules and regulations, setting an example for all employees.
Together, the implementation of consistent communication, where clear and frequent messages from senior management about the importance of compliance reinforce its value within the organization. Furthermore, 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 through continuous training practices that educate 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.
