With increasing awareness of corruption and ethical failures in companies and NGOs, the term compliance has been gaining more and more space in Brazilian organizations. Its importance grew even more after the enactment of the Law No. 12,846/13 (Anti-Corruption Law) and its regulation, making the compliance an essential practice also for the Third sector.
The organizations of the Third sector need to meet the highest standards of ethics, transparency and accountability. The implementation of practices of compliance helps ensure that resources are used appropriately, minimizing risks and ensuring the trust of donors and partners.
What is compliance?
Compliance is a set of practices and strategies that ensure that an organization is in compliance with laws, standards and regulations current, following high ethical standards, with the aim of strengthen your reputation, encourage a positive organizational culture, reduce operational and financial risks, and promote a sustainable business environmentThe term derives from the English "to comply," which means "to be in conformity" or "to comply." In other words, it involves ensuring that the organization acts in accordance with the internal and external rules that govern its operations.
These rules cover several areas, such as:
- Governance;
- Internal controls;
- Prevention of money laundering;
- Fight against corruption;
- Data protection (as per General Data Protection Law – LGPD);
- Information security;
- Risk Management;
- Environmental Compliance.
Importance of compliance for the Third Sector
Considering that the organizations of the third sector deal with resources and partnerships public and private, the transparency and accountability are essential. Therefore, the implementation of policies of compliance is essential to ensure good governance and the trust of donors, investors and partners.
Furthermore, with the Anti-Corruption Law in force, the Civil Society Organizations (CSOs) may be held liable for unlawful acts committed, even if they are carried out alone by a team member. Therefore, adopting a program of compliance Effective helps prevent fraud, ensure compliance with legislation and strengthen the organization's image.
Benefits of compliance for the Third Sector
- Ensure legal compliance: the organization complies with applicable laws and regulations, reducing the risk of litigation, fines and sanctions;
- Strengthening reputation: compliance with ethical and legal standards strengthens the organization's reputation with donors, partners and the community;
- Prevent fraud and misconduct: the practices of compliance help reduce the risk of fraud, ensuring that resources are used correctly;
- Trust of donors and partners: compliance with rules of compliance demonstrates a commitment to transparency, accountability and good governance, which increases the confidence of donors, partners and other investors;
- Improve management and governance: the implementation of processes compliance improves organizational management, promoting a culture of ethics and responsibility.
How to Implement a Compliance Program
One program of compliance involves a series of strategic actions that ensure the organization's compliance. Some of these include:
- Code of Conduct: define a code of ethical conduct that guides the behavior of employees and partners. It should cover rules of coexistence, respect, rights and duties;
- Internal control policies: establish rules and procedures for all areas of the organization, including relationships with partners and government agencies. Implementing data protection policies, in accordance with the LGPD, is also essential;
- Trainings: carry out periodic training to reinforce good practices, strengthen ethical culture and ensure that all employees understand the rules of compliance, as well as its importance;
- Whistleblower channel: create an anonymous reporting channel so that employees can report irregularities, promoting continuous improvement of the program;
- Audits: conduct regular internal audits to assess the effectiveness of internal controls compliance and identify possible areas of risk.
Compliance at Sitawi
At Sitawi Finanças do Bem, we are committed to acting in a manner ethics, full and transparent in all our operations. Our Code of Ethics and Conduct consolidates our culture of compliance and defines the behavior expected of all employees, partners and suppliers.
With more than 16 years of experience in the management of resources for philanthropic projects of organizations, movements, people or companies, we work with highest standards of compliance. This ensures that resources allocated to social causes are managed in a transparent and efficient manner, always focusing on maximize positive impact. Understand our work.
