Corporate Compliance – a perpetuity tool for companies

Many err in thinking that corporate compliance is only a necessary initiative for large companies and focused, only and only, on anti-corruption strategies. In reality, in the current corporate environment, especially when entering into new partnerships and hiring, compliance is a mandatory and fundamental resource.

Legal compliance or, for those who like foreignness, compliance, since the Brazilian corruption scandal in 2015 (watch the movie “The Laundry”), continues on the agenda in the most diverse companies, both to improve corporate governance rules and to monitor how companies have acted in favor of social objectives (such as ESG – Environment, Social and Governance).

Compliance is ensuring that business practices are in accordance with internal statutes and regulations, as well as laws in general. Thus, business compliance is an important tool to combat illegalities within companies, preventing legal and financial risks for the organization.

With an efficient compliance program, it is possible to protect the company from possible sanctions, lawsuits and reputational damage. In addition, the implementation of compliance policies can help increase transparency and business ethics, improving the trust of customers, employees, suppliers and investors in the company.

Still, a structured compliance extends to practically all areas and sectors of the company, because we have as ‘basic’ types of compliance: contractual compliance, labor compliance, tax compliance, data protection compliance and environmental compliance.

Each of these types is aimed at ensuring that the company complies with the norms, laws and regulations applicable to each of the areas. For example, contractual compliance aims to ensure that the company strictly complies with the clauses and conditions of the contracts it enters into with employees, suppliers, customers and other business partners.

Compliance thus ensures that the company complies with the obligations it has committed to its business partners and, in addition, protects itself from any problems and complications that may arise throughout this business relationship.

Meanwhile, tax compliance aims to ensure that the company complies with tax obligations while avoiding fines and penalties. Compliance in data protection, on the other hand, aims to guarantee the security and privacy of the data of customers and employees that are treated, thus avoiding possible data leaks, security incidents and the application of sanctions by the National Data Protection Authority (ANPD).

Environmental compliance aims to ensure that the company complies with environmental laws and regulations, avoiding damage to the environment and possible fines and sanctions. Currently also applied in ESG (Environmental, Social and Governance) programs, environmental compliance has gained a lot of relevance and has become a requirement within companies, charged not only by the national and international market, but also by a large part of society, that is, by its own customers.

And finally, we can talk about labor compliance, which aims to ensure that the company is complying with all the laws and regulations provided for in labor legislation, providing a safe environment for its employees and, especially, protecting itself from high convictions in any lawsuits and inspections by the competent bodies.

In summary, corporate compliance, carried out in a structured way, covering all areas of the company, is essential to ensure the transparency, integrity and sustainability of the company’s business.

Thus, to ensure the perpetuity of business, enable the capture of investments and the conquest of great partners and more and more customers, we have business compliance no longer as a choice, but rather as a must for companies that want to perpetuate themselves in the business world.

With planning, regulation, transparency and access to information, it is possible to create an efficient business compliance program and keep the company healthy and prosperous within the current market.

Marina Sampaio Costa-lawyer, graduated in law, from Centro Universitário Padre Anchieta (2018), enrolled in the Brazilian Bar Association, São Paulo Section (2019). Postgraduate in Business Law from Faculdade Legale, postgraduate in corporate law and Compliance from Escola Paulista de Direito (EPD), author of articles. Lawyer and Operations Coordinator at TM Associados.

Leonardo Theon de Moraes-lawyer, graduated in law, with emphasis in business law, from Universidade Presbiteriana Mackenzie (2012), enrolled in the Brazilian Bar Association, São Paulo Section (OAB/SP) (2012). Postgraduate and Specialist IN Business Law from the São Paulo School of Law of the Getúlio Vargas Foundation (2014), Master in political and Economic Law from the Mackenzie Presbyterian University (2017), author of books and articles, lecturer, Professor in undergraduate, MBA and Executive Education at FIPECAFI and member of the São Paulo Lawyers Association (AASP). Founding partner of TM Associados.