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the decision has a deterrent effect and seeks to inform the public about illegal practices and the legal consequences of those practices.
prohibition of contracting with the public power:
The company may be prevented from participating in bids and contracting with the government for a certain period. This penalty can have a significant impact on company operations, especially for those that rely on government contracts.
- damage repair: In the environmental field, the company may be required to repair damage caused to the environment, as provided in the Environmental Crimes Law. Damage repair may include the recovery of degraded areas, the payment of compensation and the adoption of preventive measures to avoid further damage.
- Suspension of Activities: The company may have its activities temporarily suspended until environmental practices are regularized. The suspension of activities is a drastic measure that seeks to protect the environment and public health.
For directors and executives:
- Personal Liability: Directors and executives can be held personally liable for acts of corruption and other compliance violations. Personal responsibility seeks to ensure that business leaders act with integrity and meet their compliance obligations.
- Fines and Imprisonment: Depending on the severity of the infraction, those responsible may be subject to fines and even imprisonment. In the environmental field, penalties can include detention of one to three years. Criminal sanctions have a deterrent effect and seek to punish illegal behavior.
- Loss of Position: In cases of serious non- compliance, directors and executives may be removed from their duties. The loss of position is a measure that seeks to protect the integrity of the company and ensure that those responsible for illicit practices do not continue to occupy leadership positions.
- Criminal Sanctions: In the case of environmental
crimes, criminal sanctions may be applied to directors and executives, including arrest and fine. Criminal sanctions reflect the seriousness of environmental crimes and the need to hold individuals accountable.
- Disqualification: In serious cases, directors and executives may be disqualified from holding management positions in companies. Disqualification is a preventive measure that seeks to avoid the recurrence of illicit practices by disqualified individuals.
conclusion
The responsibility of directors and executives in complying with compliance standards is essential for the integrity and sustainability of companies in Brazil. With increasing oversight and the severity of applicable sanctions, it is imperative that companies invest in effective compliance programs and promote a corporate culture of transparency and responsibility.
To avoid sanctions and promote effective corporate governance, it is recommended that companies:
-Invest in continuous compliance training programs;
-Implement rigorous monitoring and auditing processes;
-Establish safe channels for reporting irregularities;
- Promote a culture of ethics and transparency at all levels of the organization.
By following these recommendations, companies will be able to mitigate risks and ensure that their operations are in compliance with legal requirements, protecting their directors and executives from possible sanctions. Implementing a robust compliance program and promoting an ethical corporate culture are critical to building a strong reputation and long-term sustainability of business operations.
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