Challenges of Implementing Corporate Compliance in Contemporary Brazil

Marcelo Luiz Ferreira ()
Additional contact information
Marcelo Luiz Ferreira: KPMG

A chapter in Corporate Social Responsibility in Brazil, 2019, pp 241-250 from Springer

Abstract: Abstract Brazil has gradually adhered to global best practices relating to corporate compliance, as evidenced by the anti-corruption Law 12,846 enacted in 2013. Companies have progressively implemented controls in order to adhere to the terms of this law and mitigate related risks. This is happening in the midst of the largest federal investigation which ever occurred in Brazil against corruption and money laundering: the so-called “car wash” operation. A recent survey issued by KPMG Brazil, with the participation of more than 200 major companies, demonstrated that the level of maturity of the compliance area still needs to be improved. Almost half of the analyzed companies have either minimum or no compliance structures. Taking into account that the majority of the companies have a formalized code of ethics, it would appear that concern exists in theory, but monitoring and controls have not been effective. Country, society and corporations are moving forward in respect of corruption. Admitting its existence and combating it is the first step and this is definitely in place. However, one of the key challenges is how to perpetuate these actions in a highly bureaucratic country/economy. A World Bank survey “Doing Business” indicates that Brazil ranks 120, in a total of 180 countries, in relation to ease of doing business. As an example, an average Brazilian company spends 2600 h per year with tax compliance procedures as compared with 218 h in Germany and 175 h in the USA. This provides clear evidence that more requirements/formalizations do not necessarily mean a more compliant environment. The purpose of this chapter is to demonstrate what actions government and corporations are taking in order to improve the corporate compliance environment in Brazil, aimed at achieving a balance in terms of costs, reputation preservation, and business flexibility in a demanding environment of economic growth allied to corporate social responsibility.

Keywords: Brazil; Corporate social responsibility; Anti-corruption law; Maturity of compliance; Bureaucracy (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-319-90605-8_11

Ordering information: This item can be ordered from
http://www.springer.com/9783319906058

DOI: 10.1007/978-3-319-90605-8_11

Access Statistics for this chapter

More chapters in CSR, Sustainability, Ethics & Governance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().