In recent times, I have been increasingly dedicated to studying best corporate governance practices , a way of contributing more to the topic at Brasil TecPar, and also of strengthening the culture, as we have a great commitment to guiding the company towards a responsible future.
This article seeks to share this understanding and application of these concepts in a practical way in everyday life. Governance does not need to be an excessively technical, complex or distant topic,
I hope this reading can help you simplify this in your mind too, as it has for me.
Governance , at its core, is about ensuring that the right decisions are made, in the right way , by the right people , for the benefit of everyone involved — shareholders, employees, customers and society.
So, how can you apply the best corporate governance practices to your company’s day-to-day activities?
Transparency — A window for everyone
Imagine your company as a house with large windows. Transparency is what allows everyone to see what’s going on inside. There are no secrets. This not only builds trust with shareholders and customers, but also facilitates internal communication. For example, maintaining a clear policy on how important decisions are made or how resources are allocated creates an environment of trust and collaboration.
Having clear, accessible and independently audited financial reports has become mandatory. But transparency goes beyond finances. It is also present when we openly communicate the challenges the company is facing. I see that we did this very well when the company faced the flood crisis in RS and during the pandemic. It is not easy to admit when we need to adjust course, but this transparency has strengthened the company's image in the long term.
Responsibility — Sense of “commitment”
You know when you make a commitment, and everyone expects you to deliver? Accountability means that each person or area in the company is clear about their obligations and that these obligations are fulfilled. From leaders to operational levels, it is essential that everyone knows what their role is in the company's big puzzle.
I also learned the difference between "responsibility" and "accountability": In the literal translation from the dictionary to Portuguese, both words are defined as "responsibility", but the difference between them in their origin is that "accountability" brings an idea of proactiveness, commitment, transparency and demonstrate how things are going, for what is your assignment to do and/or deliver.
Therefore, it is essential for leadership to validate whether the necessary resources exist for the team to achieve the expected results, and here the word "necessary" is not much more, and not much less.
Similarly, if a project goes wrong or isn’t going as planned, it’s important to have a culture of learning rather than a “witch hunt.” This encourages people to be accountable and also to innovate without the constant fear of punishment.
I have seen that we all end up learning more, and achieving even better and greater results, from something that did not go so well in the past, when we have the chance to take "the lessons learned" and go to the challenge again. There is a quote that I really like : "the life always gives chances to those who are responsible" - as Antonio Meneghetti says in several of his books.
Accountability — A pact of trust
Here, accountability is not just a formality; it is a governance practice that ensures that the company is being managed ethically and efficiently. Think of a board of directors as a kind of “trust auditor,” ensuring that managers make decisions that truly benefit the company and its stakeholders.
In practice, this may mean holding regular meetings to analyze results and define new directions, if necessary. An example? Let's say the company has made a large investment in technology, accountability involves not only monitoring the financial results of this investment, but also understanding how it impacted operational efficiency and customer satisfaction, improvements in work processes and how this will contribute to the future of the company.
Equity — Treating everyone fairly
The word “ equity ” may sound complex, but it’s actually quite simple: It’s about ensuring that everyone is treated fairly and has the same opportunities within the company, regardless of position, age, gender or any other factor. This applies to employees as well as shareholders, customers and other stakeholders.
In practice, this can be reflected in internal programs that promote diversity and inclusion, but more than that, it needs to be part of the daily mindset.
Social Responsibility — Much more than just numbers
In the modern corporate world, governance is not just about increasing profits. Practicing good governance also considers the impact of decisions on the societies in which they participate and on the environment. This is where social responsibility comes in, which can be seen in initiatives such as the use of renewable resources, sustainable practices, or projects that support the local community. This is a topic that we have been concerned about for a long time, and I see that we have increasingly structured it through the our ESG committee.
Companies that incorporate this practice into their governance tend to be more successful in the long term, because they are creating value not only for shareholders, but for everyone involved in the ecosystem in which they operate.
Everyday Governance: Simplicity that makes the difference
The interesting thing about best corporate governance practices is that we need to understand that they are not complicated rules or disconnected from reality. They are, in fact, tools for the company to run better, make more strategic decisions and build an environment where everyone feels valued. We should think of them as the tracks that keep the train on the right track — once they are in place, the tendency is for everything (or most of it) to move forward more smoothly and safely.
So, if you are looking to improve your knowledge about corporate governance, I hope this article has contributed, reminding you that we experience this on a daily basis, and governance is not only good for business, deep down, it is good for the development of people and the ecosystem in that we live!
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