Compliance of Management Practices Instituted in the Third Sector Based on Governance Guidelines Established by Brazilian Organizations

Vilma Geni Slomski, Agnes Aparecida de Britto, Valmor Slomski, Ana Lúcia Fontes de Souza Vasconcelos, Leonardo Fabris Lugoboni and Joshua Onome Imoniana
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Vilma Geni Slomski: Programa de Pós-Graduação em Ciências Contábeis (PPGCC) do Centro Universitário da Fundação Escola de Comércio Álvares Penteado (Unifecap), São Paulo 01502-001, Brazil
Agnes Aparecida de Britto: Programa de Pós-Graduação em Ciências Contábeis (PPGCC) do Centro Universitário da Fundação Escola de Comércio Álvares Penteado (Unifecap), São Paulo 01502-001, Brazil
Valmor Slomski: Departamento de Contabilidade da Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo—EAC/FEA/USP, São Paulo 01005-010, Brazil
Ana Lúcia Fontes de Souza Vasconcelos: Programa de Pós-Graduação em Ciências Contábeis (PPGCC) da Universidade Federal de Pernambuco (UFPE), Pernambuco 50670-901, Brazil
Leonardo Fabris Lugoboni: Accounting Department at the Universidade Federal de São Paulo (UNIFESP), São Paulo 01005-010, Brazil
Joshua Onome Imoniana: Departamento de Contabilidade da Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo—EAC/FEA/USP, São Paulo 01005-010, Brazil

Sustainability, 2022, vol. 14, issue 9, 1-22

Abstract: This study aimed to determine the compliance of management practices instituted in a third sector entity based on governance guidelines established by Brazilian organizations. It was exploratory qualitative research. Data were collected through in-depth interviews and documentary analysis; data analysis was performed by content analysis. The researched entity has a structure that meets the compliance function composed of three axes: (a) normative, referring to the adoption and formalization of the integrity program from instances, mechanisms and procedures dealing with ethical conduct, internal controls, laws, rules, regulations and risk management to which the entity is exposed, with complete adherence to the guidelines; (b) commercial, referring to the adoption and formalization of mechanisms covering relationships with partners, customers and suppliers, such as the accountability of funds raised; however, contingencies arising from the COVID-19 pandemic required mechanisms not yet foreseen for the accountability of resources from private donations. This axis had low adherence to the guidelines: (c) organizational, referring to the adherence and commitment of senior management to the policies instituted with a view to preserving the net worth, a financial sustainability and corporate social responsibility with almost complete adherence to the tested guidelines. In conclusion, organizations that depend on resources need an institutionalized compliance structure to ensure high levels of adherence, because as they become more reliable, they will receive more credibility and legitimacy. This study, based on the perceptions of managers, contributes to demonstrate the relevance of governance and the establishment of a culture of compliance in the third sector.

Keywords: management practices; internal controls; compliance; corporate governance; institutional theory; third sector (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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