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
Bradesco is a household name in Brazil. Millions of Brazilians depend on Banco Bradesco for their banking needs. But banking in the largest country in Latin America is different from banking in the United States. Brazilian banks are not as credit-friendly as American banks. The interest rates on consumer and business loans is high. Those rates are coming down, but most people can’t qualify for a home or automobile loan. But even though consumers don’t get as many loans as the people living in the United States, the Brazilian banks are still very profitable. Bankers only lend money when there is enough collateral to cover the loan, and when bankers know the consumer will pay the bank back. Bradesco is a good example of a private bank that knows how to make money even when the economy is in a recession, according to CEO Luíz Carlos Trabuco Cappi. Bradesco makes money buying bonds, and by having insurance that protects the bank from some of the financial pitfalls that develop during a recession. Some banks are government-owned, so profit is not as important to them, but Trabuco Cappi’s bank is all about turning a profit. Bradesco is part of the São Paulo Stock Exchange and outside of Brazil, Bradesco stock is on the New York and Madrid stock exchanges. Bradesco also participates in the Dow Jones Sustainability World Index, according to Mr. Trabuco Cappi.
Mr. Trabuco Cappi is well-known in the banking world because he is a solid banker with a proven track record. He started his banking career with Bradesco in 1969. The bank gave him the title of “director” in 1984. In 1999, Bradesco’s Board of Directors gave him the title of vice-president. Then in 2003, Mr. Trabuco Cappi became the president of Banco Seguros. Banco Seguros is the in-house insurance division of the bank. Trabuco Cappi’s performance in the insurance division was the catalyst for Seguros contributing more than 30 percent to the bank’s profit in 2008. At the end of 2008, Trabuco Cappi got the job he worked for years when he sat in the president’s chair for the first time. Mr. Trabuco is only the fourth president in Bradesco’s history. His degree in philosophy from the São Paulo, and his post-graduate work in psychology, finally paid off. In 2015, Trabuco Cappi and the bank’s Board of Directors had an important decision to make. HSBC’s Brazilian operation was for sale, and the bankers thought the 851 HSBC branches and the more than 1,800 service stations would help the bank get closer to its goal of being the largest private bank in the country. Bradesco executives thought the $5.2 billion price tag for the HSBC operation would help the bank achieve that goal faster. Banco Itaú went through a similar acquisition situation in 2008 when that bank bought Unibanco. Itaú Unibanco has more assets under management, but Bradesco is not far behind in the race to become the largest and most recognized private banking institution in the country.
The credit for Bradesco’s current success goes to the bank executives and the more than 100,000 bank employees. Sixty-six-year-old Trabuco Cappi doesn’t flaunt his banking track record. He manages to keep a low-profile, but the banking industry gives him a lot of credit for his perseverance and tenacity during the dark economic times in Brazil. Bradesco current banking mentality is an online and mobile banking mentality. More Bradesco clients use their mobile devices to do their banking, and Trabuco Cappi and his team have the apps in place to make online banking an easy and almost effortless experience.https://br.linkedin.com/in/luiz-carlos-trabuco-trabuco-37a79229
In Mar. 2009, when Luiz Carlos Trabuco Cappi had taken over the Bradesco presidency, the bank had lost the lead to Itau Unibanco. Cappi ruled out a run which was for the first position the ranking of the of the banks. In Aug. 2015, Cappi made a move ahead of Bradesco bank. With the approval of Chairman of Board, Lazaro Brandao, Cappi bought the HSBC Brazilian branch for 5.2 billion US dollars in 2015 in the biggest transaction in Brazil that year.
A single amount of the Bradesco and HSBC market shares made Banco de Deus based in Osasco to outperform the Itau Unibanco in in total investments funds, some account holders, and branch network. It also came close to Itau Unibanco in loans granted, deposits, and assets. MONEY chose Cappi as Finance Entrepreneur of the Year. Cappi was born in 1951, in Marilla, the Bradesco origin city. He graduated from the faculty of Letters, Science, and Philosophy from the University of Sao Paulo.http://tudo-sobre.estadao.com.br/trabuco
Cappi started his career in the bank industry in the year 1969; he worked his way to become the Bradesco Seguros president, he served this position from the year 2003 to 2009. That area contributed roughly 30 percent of the profit of Bradesco to date. AS soon as Cappi too that position, he formed a corporate University and started seeking the leadership cadres’ renewal, talking to executives from every bank level.
To account for that, it established rituals giving autonomy to the people who were promoted. The people that got promoted were assembled in the Nobel Hall, which is the most bank solemn, used for the meetings of shareholders. One innovation sign that Cappi promoted was the search for the market professionals.
Cappi extends his career at business dinners. In the year 2015, hi name was regarded as being capable of running the Ministry of Finance. However, he didn’t accept President Dilma Rousseff invitation. An executive who knows Cappi well said that he was born to serve Bradesco. In 40 years of his profession, Cappi he has gone through strategic sectors like marketing and private pension.