Training is often underestimated in the legal profession, which usually prioritizes the studies, draft of documents, and interpretation of laws.
If the rules are ineffective and the society’s conduct remains erratic, the solution is often to create new, more severe rules, believing that such rules will solve all the problems. When the results are not achieved, new laws are passed, and society finds itself in an eternal loop, where the actual issue is not addressed.
When it comes to compliance, training is even more relevant and time and energy must be devoted to making compliance presentations to officers, employees, suppliers, and, whenever possible, customers and business partners. Compliance training must include the organization’s values included in the Code of Conduct and the Compliance and Integrity Policies.
Once the tone at the top has been set, risk management has been conducted, the Code of Conduct and all necessary policies have been established, communication has been released, it is time to call the stakeholders for training.
During training, participants will have the opportunity to ask questions, interact with Compliance Leaders, and cement their knowledge of the organization’s values and policies.
Needless to say, training activities conducted at the upper management levels may be replicated by their members to the subordinates. “Train the trainers” can be a cost-efficient strategy, and it serves as a stimulus for leaders to become further engaged with the Compliance and Integrity Program.
In Brazil, training is listed among the fundamental elements for an effective Compliance and Integrity Program under Art. 42 of Federal Decree No. 8,420/2015. Training activities may take various forms and range from basic training on the Code of Conduct for all employees to specific training for certain audiences, such as on Competitive Compliance, Tax Compliance, Labor Compliance, or the role of leadership in Compliance matters.
The organization must keep a record of the training sessions through attendance lists and certificates, which can be used as evidence during audits. Training must be periodical at least once a year and try to reach as many employees as possible.
Once, a multinational organization established that its compliance officers worldwide would have one year to train at least 90% of its employees. This goal was achieved by following the Pareto Principle, also referred to as the 80/20 Rule. At first, training a large number of employees, but from a certain point onwards it became increasingly difficult to progress in training additional staff. Training sessions were initially held for over two hundred employees. However, towards the end of the deadline, training was held for groups of as little as three people. It was sometimes necessary to use a “top down” approach and get the support of the directors to get their employees to participate in the training sessions. Some of them were held at midnight, in factories, in between the workers’ shifts. By the end of the year, the initial target was exceeded: 95% of employees had been trained!
Training is a fundamental item in any compliance program in Brazil and should never be underestimated.
Edmo Colnaghi Neves is a lawyer and a Corporate Compliance Expert, he is a partner at Colnaghi Neves Consultoria Empresarial, and the author of the book Doing Compliance in Brazil, published by Editora B18.
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