The lack of corporate governance creates problems that, unfortunately, do not go unnoticed. The absence of clear rules, practices, and processes to guide management and decision-making makes a business vulnerable to risks, undermines operational efficiency, and affects other areas that may compromise the brand’s credibility.
Governance can be defined as the set of rules, practices, policies, and processes aimed at ensuring the company’s transparency, ethics, and accountability. This set forms a system designed to align the interests of all stakeholders, including managers and shareholders, to generate value in a sustainable manner.
Thus, it can be said that a company without governance resembles a “lawless land”—literally without rules or guidelines, lacking clear leadership or recognized authority, resulting in a lack of transparency and trust in the business.
Such environments foster situations in which individual interests prevail over the collective interests and goals of the organization, potentially creating insecurity, instability, and a constant sense of chaos.
Impacts of the Lack of Governance
The absence of structured governance results in internal, structural, and growth-related problems for the company, including:
– Lack of communication and misalignment between departments;
– Overload caused by the concentration of decision-making;
– Conflicts of interest and disputes among partners;
– Difficulty expanding the business;
– Unreliable data;
– Lack of credibility in the brand or services provided;
– Vulnerability to risks, including security risks;
– Unethical practices and fraudulent behavior becoming part of routine;
– Non-compliance with regulatory authorities.
Real Cases: Companies Affected by the Lack of Governance
Throughout history, many globally recognized companies have faced problems related to the absence of structured governance policies and systems.
One of the most recent cases was Americanas, which in 2023 reported an accounting inconsistency estimated at BRL 20 billion in its financial statements. Following the incident, the company was severely penalized, even being excluded from the Index of Stocks with Differentiated Corporate Governance and the Corporate Governance Index – Novo Mercado.
This situation prompted other organizations to reflect on their own practices and, consequently, take them more seriously. After all, having policies in place is of little use if they are not closely monitored.
Alibaba, the Chinese technology company, also faced governance-related issues. In 2020, after investigations, it was found that the company had violated regulations and had not properly implemented compliance policies and processes.
In other words, problems arise not only from the lack of governance but also from the absence of proper control and monitoring of policies in practice.
Cases like these show that the lack of governance remains a reality for many companies.
First Steps to Implement Governance
To implement corporate governance in a company, it is essential to understand its pillars, as they form the foundation for structuring the entire program.
It all begins with:
• Equity
• Transparency
• Accountability
• Corporate responsibility
With this in mind, it is necessary to formally establish a board of directors, consider hiring an independent auditing firm, strengthen relationships with investors and other stakeholders, and promote ethics throughout the organization.
In this regard, tools such as organizational culture and a clear and objective code of conduct become powerful allies of governance.
The company’s core business processes must be systematized, as well as its risk management processes. It is also important to ensure that all organizational processes and risk management activities are aligned with the company’s strategic planning.
Finally, having appropriate technological tools to implement governance and monitor processes and risks can facilitate the predictive mapping of adverse situations.
GRC – Governance, Risk, and Compliance
The GRC solution from Interact Suite SA provides the best technology to ensure that the highest level of corporate governance is applied, in full compliance with legal regulations and security policies.
With this solution, you can significantly transform the development of organizational culture, sustainability, and brand strengthening. Additionally, it enables alignment from strategy to operations, with modules that operate in accordance with the BSC and GPD methodologies.
Its functionalities are fully aligned with the requirements of globally recognized models and methodologies, including ISO 9000, ISO 31000, PMBOK, SOX, U.S. Sentencing Guidelines, Basel Committee, Australian Standard AS 3806, LEC, and the Office of the Comptroller General of the Union.
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