Bruno Fagali’s Thoughts on Why Compliance is Key in Corporate Governance

In the business world, the meaning of the word “compliance” goes beyond agreeing to a set of internal instructions. According to Bruno Fagali, an attorney, it is a practice that should be embraced in corporate governance. Fagali also believes that board members and executives should be mandated with the role of monitoring and dealing with illegal acts and unethical conduct in their companies.

In Brazil, corporate integrity and compliance issues are covered in the country’s anti-corruption law. The anti-corruption law also provides guidelines on how private and public ventures can formulate compliance and corporate integrity or ethics policies. Furthermore, ventures found to guilty of indulging in tender fraud or corruption are liable to penalties.

Bruno Fagali is certain that there are several ways in which companies can avoid tender fraud or corruption cases. For instance, they should vet potential partners before facilitating any transaction. Vetting in this context entails reviewing the partner’s government-issued registration certificate and tax compliance certificate. Bruno Fagali believes that corporate integrity will be fostered once these certificates are reviewed.

Fagali also advises business owners to check the conditions of work of their potential partners. This initiative helps to determine whether they are compliant with the laws on slave and child labor. It is also used to prove that the potential partner respects civil servants’ rights.

Business owners should verify their counterpart’s National Classification of Economic Activities (CNAE) certificate. They should also confirm whether the partner has a Portal of the Transparency of the Federal Government certification. This certification is an indication of a company’s proper use of public resources.

About Bruno Fagali

Bruno Fagali practices law at FAGALI Advocacy, which specializes in administrative contracts, urban law, bidding law, and regulatory law. The firm also specializes in administrative and civil liability processes. Fagali is an LLB graduate of the Pontifical Catholic University of São Paulo. Before he launched FAGALI Advocacy, he used to practice law at the Brazilian Institute of Law and Corporate Ethics.

Bruno Fagali gained most of his experience in corporate integrity and ethics from Nova/sb. He serves as the ad agency’s corporate integrity manager. He is responsible for monitoring and overseeing the ad agency’s corporate integrity program. One of his notable achievements at Nova/sb involved creating a committee for ethics for the company. Learn more: http://www.consultasocio.com/q/sa/bruno-jorge-fagali

 

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