From ancient Greece to the present day, the goal has been to understand, judge, criticize, and improve moral behavior and human conduct in society. This human perseverance has always had a common goal, to establish a better way of life for all of us – society. This we call “ethics”.
At the same time as we outline what would be ethical or not, we establish standards of conduct that become habits, traditions, even codes and laws. To ensure that these behaviors are followed by all, many organizations have established the so-called ethics and compliance programs. In Brazil, some public institutions even gave a more complete name, the so-called integrity programs.
This progress occurred much to the detriment of corruption scandals that mainly plagued the United States starting in the year 2000 with the Enron case and subsequently affected large European companies until reaching Brazil with the mensalão and Operation Car Wash.
The results of these investigations were very similar, companies paid extremely harsh fines, executives, partners, and even board members were fired, prosecuted, and imprisoned, not to mention the immeasurable damage to their image and reputations recorded forever in books, articles, newspapers, films, among other means. Even if the companies involved changed their reason/social denomination and address, they will always be remembered for the events that occurred. The digital memory does not forgive, it is eternal.
On the positive side, these large corporations had to establish the so-called ethics and compliance (or integrity) programs, which involved the application of various elements such as the implementation of internal controls and continuous education on ethics, laws, codes, and standards of conduct expected by society as a whole. In addition to ensuring the effectiveness of contractual and legal commitment among all related entities, additional elements, such as continuous anticorruption risk management, processes to avoid conflicts of interest, audits, independent whistleblowing channels, and continuous investigations were implemented to ensure the highest standard of integrity.
On the other hand, not everything is rosy! Those affected by these processes reacted, and just like in Italy with the ‘clean hands’ operations, those involved in the ‘car wash’ operation faced their setbacks. Despite advancements towards more ethical conduct standards, what has been seen in recent years is a relaxation in the punishment process and new investigation initiatives. Executives and political figures had their sentences lightened and even canceled, prosecutors were persecuted and/or left the prosecutor’s office.
To add to this plot, recently, the decisions of the new American government have also contributed to weakening the fight against corruption. By decision of the American President, one of the most important laws that drove investigations against government corruption worldwide, the Foreign Corrupt Practices Act (FCPA), faced a request to suspend its effects associated with guidance to the American Department of Justice for investigations against companies and individuals to stop.
Furthermore, due to the aforementioned, we have witnessed the growth of a scenario where many companies no longer take integrity programs seriously. We have seen several companies with integrity programs that are ineffective, just to say they have something or even just to participate in bids, but in practice, they have nothing. Or then, once again the merger of integrity with the legal department, as well as the relegation of integrity leadership to serve only the commercial interests of the companies. Companies do not want the integrity officer at the table, but rather someone who is just a “order follower.”
What are the effects of this setback on corporate integrity programs, and the degree of impact is still uncertain. The guardians of these programs, known as “compliance officers” or compliance executives, are stunned and many refer to current times as difficult times or even “strange” times. Furthermore, the support from Top Management has truly weakened. If this setback was not enough, we still see the assault on a series of other programs that also involve life ethics, such as the cancellation of diversity and inclusion programs or even sustainability programs like ESG.
Facing this scenario, doubt, uncertainty, and fear of regression are established. Initially, it is possible that some companies quickly adopt the new trend through reorganization, juniorization, or even reduction of such ethics and compliance programs, clearly demonstrating that they did not do it out of principle or values but only out of obligation.
However, others must maintain a certain standard because they have realized that an integrity program goes far beyond compliance with laws. A company with the highest standard of conduct has much to gain, beyond reputation and image, its entire ecosystem of suppliers, partners, customers, and especially employees want a better, more ethical way of life. In this honest environment, relationships are stronger and more transparent, the results are more solid, and there is undoubtedly a whole that wants to see this company succeed.
And for those who do not believe in ethics, compliance, or integrity, those who believe only in making money and survival of the fittest, a reminder is necessary:
First, every movement is pendular, everything that goes also comes back. Today, we are living a moment of attack on ethical precepts, concepts already understood, judged, improved, and tested. It is no longer necessary to prove that corruption is harmful to the social well-being of all. Therefore, be careful, this pendulum will return. Especially when new and larger scandals of public and private corruption begin to arise again. Society is tired of being deceived.
Secondly, the third law of Newton does not need to be further proven, every action has an equal and corresponding reaction. This attempt to deconstruct the progress made for the benefit of society has generated opposition that will soon become a counterforce. Promoters, judges, compliance executives, advocates of ethics, sustainability, counselors among others are not standing still, they are reflecting, even reluctantly, seeking a solution that will come. As the saying goes ‘if you think Compliance is bad, try non-Compliance’. Sadly, many companies are taking this risk. They tossed a coin in the air and hope that the coin does not fall to the ground.
Third, for those who have seen and experienced the scandals of countless public and private companies involved in corruption, people arrested and convicted, businesses and families destroyed, and a bad reputation immortalized, they know that loosening all these programs is taking a huge risk. For those companies that value good governance and for those board members who had to pick up the pieces post-disasters, some lesson has been learned or another lesson will be necessary in a few years.
Finally, for all those who have ethics as a principle, not as an obligation, it is a time for resilience, it is certain that the wheat will be separated from the chaff soon. Until then, it will be necessary to row against the wind, have patience, stay strong, and not retreat because in the end integrity pays off.
