Brazilian companies can no longer evade the topic of Ethics - Compliance. It is no longer possible to have some banal phrases under the headings “mission” and “our values”, a code of ethics and pro forma program of due diligence. In fact, all the construction companies and other large companies involved in Car Wash had beautiful codes of ethics. But nobody took it seriously or, if they did, it was to a certain organizational degree.

When the Anti-Corruption Law came into force in 2014, much was said about compliance. Law firms have set up and publicized departments specialized in the subject. Event and executive education companies promoted courses, seminars, and congresses on anti-corruption compliance. But many Brazilian companies didn't take it seriously. Even speaking of ethics and compliance word of mouth, the programs of national companies were only “for English to see”.

You can even understand. How can businessmen take seriously the idea of implementing policies against bribery, bribery, and corruption in a country where corruption is the rule and not the exception. Where there is no distinction between corruption and extortion. Not only in business with public bodies. For example, in the area of health and medicine, every examination laboratory gives bribes to the referring doctor. Health plans are ponzi schemes. Even after the Car Wash, from the little flannel on the street, who requires money to look at your car, to the construction contractor, who refuses to pay before receiving your bribe, corruption continues to permeate every aspect of life in Brazil.

It's a cultural issue. It's not a matter of law. As Leandro Karnal said, “Brazil is the country where a new law may or may not apply”. The Anti-Corruption Law and its regulations provide for the obligation to implement an Integrity Program that consists “within the scope of a legal entity, the set of internal integrity mechanisms and procedures, auditing and encouraging the reporting of irregularities, and the effective application of codes of ethics and conduct, policies and guidelines aimed at detecting and curing deviations, fraud, irregularities and illegal acts committed against the public administration, national or foreign.”

In fact, this aspect of the Anti-Corruption Law didn't catch on. It was engulfed by the force of Cultural Rule No. 01 — Gerson's Law, in which it takes advantage whenever possible, taking advantage of the situations it encounters. Specifically, bribes must be paid. Or accept a bribe. And those who refuse are suckers.

So what's changing? Actually, they're two things.

The Concept of Ethics — Compliance

First, the concept of what I call “Ethics - Compliance” extends beyond corruption to encompass all applicable corporate ethics policies, both in internal operations and in relations with third parties. In the internal environment, it includes commitments that involve honesty, integrity, loyalty, justice, dignity, non-discrimination, and diversity, among others. In external relations, the company cannot profit from human rights abuses. Companies have an obligation to “identify, prevent, and mitigate the risks to human rights that entail their activities and business relations”.

According to multinational companies, due to their own ethics and compliance obligations, they now have responsibility for their entire production chain. Therefore, they are demanding that their Brazilian partners adopt and implement internal processes and adapt their behaviors to the same national and international rules of conduct and applicable ethics policies.

For the Brazilian company that provides or provides services - or that hires international companies -, adopting ethics and compliance programs becomes essential. Now it's for real!

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