BRAZIL Trends and Developments Contributed by: Valeska Teixeira Zanin Martins, Carla Costa Carneiro da Silveira, Carlos Henrique Sousa Dias, João Victor Orlandi Zanetti Della Penna and Renato Bastos Abreu, Zanin Martins Advogados
internal trust. Leaders who embody ethical conduct through their decisions inspire aligned behaviour and contribute to the sustainability of an ethical culture. This example has a multiplying effect, influencing not only employees but also partners and suppliers. Good practices include: • conducting regular, context-specific training ses - sions; • continuous evaluation of risks and internal controls, with an emphasis on prevention; • implementation of effective, retaliation-free whistle- blowing channels; • incentivising ethical behaviour through perfor - mance metrics linked to integrity; and • including integrity in employee onboarding and workplace climate assessments. Decree No. 11.129/2022 reinforces this perspec - tive by requiring senior management to demonstrate a tangible commitment to integrity and to allocate resources proportionate to the company’s risks and scale. The decree also mandates periodic review and adaptation of compliance programmes in response to evolving business environments – ensuring systems remain current and effective. ESG as an extension of integrity The evolution of compliance practices also involves integrating environmental, social and governance (ESG) principles. The concept of corporate integrity now extends beyond anti-corruption efforts to include diversity, inclusion, environmental sustainability, occu - pational safety and human rights. When companies recognise that their reputation is shaped by factors beyond corruption prevention, the scope of integrity programmes expands to encompass the entirety of corporate conduct. The 2024 CGU Guide to Corporate Integrity for Private Companies incorporated ESG-related recommenda - tions, encouraging organisations to approach compli - ance holistically – linking corporate ethics to sustain - ability and social responsibility. In practice, this integration is reflected in initiatives such as:
• conducting due diligence on suppliers using socio- environmental criteria; • promoting training to prevent harassment and discrimination; • monitoring environmental and social performance targets; • involving stakeholders in decision-making and governance structures; and • adopting codes of conduct explicitly addressing ESG principles. By aligning ethical values with sustainability goals, companies enhance legitimacy and strengthen their market position. This approach facilitates access to sustainable financing, improves investor relations and attracts professionals who identify with broader insti - tutional purposes. Ultimately, integrating ethics and sustainability dem - onstrates organisational maturity and responsiveness to contemporary social expectations – where coher - ence between discourse and practice is indispensa - ble. Compliance as a strategic and reputational advantage Companies that embed compliance into their institu - tional identity achieve a competitive edge. A robust integrity programme mitigates legal and reputational risks, attracts investors and strengthens relationships with clients and suppliers. In both due diligence audits and public tenders, strong compliance frameworks have become decisive advantages. Ethical and transparent practices serve as a critical differentiator in both public and private negotiations. Firms recognised for the solidity of their values attract long-term partnerships, consolidating reputational capital that translates into credibility and resilience. Integrity also enhances operational efficiency. By pre - venting fraud, waste and conflicts of interest, compli - ance programmes optimise processes, reduce costs and foster cohesive and productive workplaces. Deci - sions guided by ethical and legal principles support sustainable business models and long-term trust.
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