The Observatory presents the key findings of its most recent study on Compliance and Sustainability Practices in Latin America.
MADRID, April 26th, 2023. - There is a high level of conformity with the regulations regarding compliance and sustainability in leading companies in Latin America. And although practices are not fully ingrained in the culture of the organizations, company leaders are committed to drive this change.
These are some of the key findings of the second study “Compliance and Sustainability Practice and Policies in Latin America - Case Studies of Brazil, Chile, and Mexico” from IE - Elecnor Observatory on Sustainable Compliance Cultures presented today at Casa de América.
The event kicked off with a cordial welcome from Enrique Ojeda Vila, General Director of Casa América, and Enrique Aznar, Academic Director of the Observatory.
The words of the Academic Director were followed by an insightful presentation by Patricia Gabaldón, Professor of Economics at IE University, and Joaquín Garralda Professor of Sustainability at IE University, where they delved into the main conclusions of the study.
“In all three countries there is a high level of legislation. In this sense, it is important to analyze how companies decide whether or not to comply with the minimum requirements established by law. Despite the fact that policies are not equally precise in the three environments studied, there is a minimum legal framework that allows companies to start working on regulatory compliance and sustainability.” - Patricia Gabaldón, Professor of Economics at IE University
The IE University professors noted that, although international standard practices are not fully ingrained in the culture of the studied organizations, company leaders are committed to driving change, and they emphasized the importance of instilling sustainable and ethical practices in business education, in order to help companies in their fight against corruption and the continuous improvement of corporate governance.
“Governments are modifying laws to make direct investment more attractive, so that investors have confidence in the legal situation and can commit to longer-term investments. Companies are now more aware of the importance of transparency and sustainability, as this allows them to obtain more economic benefits by issuing green bonds, in addition to having greater acceptance. This is a clear push that is shaping the future of compliance and sustainability in companies.” - Joaquín Garralda Professor of Sustainability at IE University
The conversation continued with an engaging dialogue between Enrique Aznar, and María Ortiz, advisor of the National Commission on Markets and Competition (CNMC), discussing the significant conclusions drawn from the report and their implications for Spain.
“It is important to highlight the relevance of SMEs regarding compliance policies and cultures. Unlike large companies, SMEs face a greater challenge in incorporating compliance and sustainability programs due to the expense involved in relation to their total expenses. This challenge represents a problem for regulatory and competition authorities, especially in economies with a high percentage of SMEs like ours.” - María Ortiz, advisor of the National Commission on Markets and Competition (CNMC).
IE - ELECNOR OBSERVATORY ON SUSTAINABLE COMPLIANCE CULTURES
The IE Foundation and Elecnor Foundation joined forces to analyze sustainable compliance cultures companies, comprehensively studying their challenges, devising solutions against corruption, as well as various ethical challenges faced by the business framework internally and externally to the organization, and sharing their findings.
The Observatory aims to equip businesses with tools to enhance compliance management while taking into consideration ethical principles and stakeholder expectations on social and environmental matters.
Download the Report (ESP)