Compliance for more competitiveness in agribusiness

By Vanessa Lima Nascimento; lawyer and compliance specialist at Martinelli Advogados

02.03.2022 | 14:40 (UTC -3)
Vanessa Lima Nascimento
Vanessa Lima Nascimento

The adoption of good governance, social and environmental practices has been the green card for organizations to be able to market their products and services. Through a compliance program, a set of internal policies and procedures that a company establishes to ensure compliance with legal and regulatory standards, established policies and guidelines, agribusiness begins to raise its reputation in more demanding markets.

In Brazil, for example, on the 23rd the Ministry of Agriculture awarded the Mapa Integrity Seal (More Integrity), a recognition that aims to highlight good integrity and sustainability practices in organizations in the sector. 17 companies from across the country were awarded certification, two of which were advised by Martinelli Advogados – Bem Brasil, from Araxá (MG), and Rivelli, from Barbacena (MG). The sector's engagement in compliance initiatives shows that the benefits and opportunities that sustainable practices bring not only to their businesses, but also to society as a whole, are palpable.

The government's concern with structuring a program to grant recognition to companies in the sector was heightened in 2017, in the wake of the “Carne Fraca” operation, which investigated irregularities in meat companies and government entities. After the episode, companies and agribusiness entities became more alert in relation to their reputation and the impacts that certain conduct can bring.

But the implementation of an integrity program goes beyond achieving the Seal, after all, it requires creating an entire structure to prevent fraud and acts of corruption, provide transparency and promote business sustainability, in addition to protecting the image and reputation of organizations.

The gain in competitiveness and the opening of the market that the Seal can provide has encouraged companies to seek specialized advice to structure their integrity programs. When awarded, the company or organization that receives the Seal will have direct and indirect benefits, such as being mentioned on the Ministry's website as the Seal holder, and also more notoriety among its stakeholders, be they customers, suppliers or third parties. Directly, they also gain a better risk rating in credit operations with official financial institutions.

In addition to opening the market, agriculture seeks compliance to optimize processes and mitigate risks. Avoiding hiring unreputable suppliers and reducing regulatory problems are some of these benefits. This entire process also helps protect against losses caused by losses, fraud and bribery.

Not only private companies benefit from this practice, but also cooperatives. For this system, compliance helps maintain transparency and reliability in presenting results to members.

The agricultural interest in environmental, social and governance practices or ESG (in the acronym Environmental, Social and Governance) tends to grow with the current global movement in sustainability and ethics. Today, any company can develop a compliance program, update its processes, reduce losses and stand out in the market.

Vanessa Lima Nascimento is a lawyer and compliance specialist at Martinelli Advogados

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