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The code of ethics has always been considered a tool capable of guiding and acting to prevent image crises. However, the current situation in the country, formed by a succession of corruption scandalsThis has led companies to question whether a code of ethics is the best instrument for guiding values and preventing corporate fraud.
When the image crises of large companies, such as those faced by Odebercht and JBS in the wake of the Lava Jato allegations, come to the fore on the national scene, the subject of codes of ethics is once again on the day-to-day agenda of organizations in search of an understanding of their effectiveness. After all, most of the time, the crises faced are directly linked to negative conduct that compromises reputation.
Code of ethics, compliance and reputation
Reputation is one of the most valuable assets a company has, and one of the pillars is centered on the people who make up its team. A code of ethics created across the board, misaligned with corporate practices and filed away in a library, is not capable of guiding and directing the conduct of people from different cultures and backgrounds.
This mismatch between culture, values and the lack of compliance rules is clearly reflected in the image that the people who are part of these organizations make of them. Renato Santospartner at S2 Consultoria, said in interview for Exame magazinewhich:
"ohe employees of these companies [indicted in Lava Jato] are starting to hide their badges".
When they realize how susceptible to corruptionAs a result, companies are beginning to see the need to talk about ethics with their employees and to reaffirm their values so that they incorporate the principles that govern the organization.
This is when compliance is gaining strength in companies, as it acts in the area of image and reputation, taking risks into account. Whether spontaneously, forced by legislation or new market norms and pressure from society, an increasing number of companies have started to adopt a set of mechanisms that include corporate governance and tools - such as risk management - to avoid compromising their reputation.
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Image crisis prevention goes beyond the Code of Ethics
A our experience in combating corporate fraud has shown us that having a code of ethics is not enough to prevent an image crisis. In order to guide your journey, the company needs to:
- Discuss the code of ethics and make values present in people's daily lives;
- Develop an effective compliance program;
- Adopt appropriate tools to get to know people better, such as the Integrity Test, and understand what their behavior would be in situations susceptible to fraud.
Creating a corporate Code of Ethics is just one of the steps on the journey to preventing an image crisis. Other measures should be associated with this tool, such as internal communication and endomarketing actions, relationships with press offices, reputation audits and organizational climate surveys. In this way, it is possible to measure whether corporate practices are in line with what has been defined by the organization.
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