1.1 Commitment to Ethics, Transparency and Integrity
The Institute for Socio-Emotional Development of the State of Rio de Janeiro - IDAS, is a private, non-profit Third Sector institution, with the aim of promoting social well-being by achieving a more positive perspective on life. IDAS was recognized as a public utility by Ordinary Law No. 4,034, of October 3, 2022.
According to Paulo Modesto (1998), “Third Sector is the set of private legal entities for public purposes, not for profit, formed voluntarily by private individuals, auxiliaries of the State in the pursuit of activities of relevant social content, which invest in non-refundable social works ”.
The implementation of integrity programs is extremely important for Third Sector organizations, since they act effectively and beneficially to achieve important objectives, in addition to ensuring compliance with applicable laws and regulations. These programs contribute to the prevention and/or identification of irregularities, corruption and fraud, which strengthens the Institution's credibility and transparency before society as a whole, including donors, sponsors, employees and regulatory sectors.
The term “compliance” has its origin in the English verb “to comply”, which means to act according to the rules. It consists of the adoption of ethical policies and guidelines for business management, with the aim of combating, avoiding, detecting and dealing with any inappropriate behavior or non-compliance with the law that may occur. This includes the prevention of illegal practices or illicit advantages for directors, representatives, partners or other members of the Institution.
The Integrity Program is the set of mechanisms created to prevent, detect and combat the practice of harmful acts or corruption, as well as to promote the implementation of ethical principles, codes of conduct and the adoption of integrity policies and procedures, with a view to creating an upright institutional environment and preventing the involvement of the institution, its employees or managers in harmful acts against the institution itself and against the public administration. The definition of the program and the pillars that support it are enshrined in article 56 of Decree No. 11,129/2022, which regulated Law No. 12,846/2013, known as the Anti-Corruption Law, in the following terms:
Art. 56. For the purposes of this Decree, an integrity program consists, within the scope of a legal entity, of the set of internal mechanisms and procedures for integrity, auditing and encouraging the reporting of irregularities and the effective application of codes of ethics and conduct, policies and guidelines, with the aim of:
I – prevent, detect and remedy deviations, fraud, irregularities and unlawful acts committed against public administration, national or foreign; It is
II – foster and maintain a culture of integrity in the organizational environment. Single paragraph. The integrity program must be structured, applied and updated in accordance with the characteristics and current risks of the activities of each legal entity, which, in turn, must guarantee the constant improvement and adaptation of said program, aiming to guarantee its effectiveness .
Still on legislation, published in October 2017, in the state of Rio de Janeiro, Law nº 7.753/17 establishes the requirement to implement an integrity program for all companies that enter into a contract, consortium or agreement with any body of the Public Administration of the Rio de Janeiro, setting value limits as criteria for its implementation. It is important to highlight art. 4 and its items:
Art.4 The Integrity Program will be evaluated, regarding its existence and application, according to the following parameters:
I – Commitment of the top management of the legal entity, including advice, when applied, evidenced by visible and unequivocal support for the program;
II – Standards of conduct, code of ethics, integrity policies and procedures, applicable to all employees and managers, regardless of their position or function;
III – Standards of conduct, code of ethics and integrity policies extended, when necessary, to third parties, such as suppliers, service providers, intermediary agents and associates;
IV – Periodic training on the Integrity Program;
V – Periodic analysis of risks to make necessary adaptations to the Integrity Program;
VI – Accounting records that fully and accurately reflect the transactions of the legal entity;
VII – Internal controls that ensure the prompt preparation and reliability of reports and financial statements of the legal entity;
VIII - Specific procedures to prevent fraud and illicit acts within the scope of bidding processes, in the execution of administrative contracts or in any interaction with the public sector, even if intermediated by third parties, such as payment of taxes, subjection to inspections, or obtaining authorizations, licenses, permits and certificates;
IX – Independence, structure and authority of the body responsible for applying the Integrity Program and supervising its compliance;
X – Channels for denouncing irregularities, open and widely disseminated to employees and third parties, and mechanisms designed to protect whistleblowers in good faith;
XI – Disciplinary measures in case of violation of the Integrity Program;
XII – Procedures that ensure the prompt interruption of detected irregularities or infractions and the timely remediation of the damage caused;
XIII – Appropriate steps for contracting and, as the case may be, supervising third parties, such as suppliers, service providers, intermediary agents and associates;
XIV – Verification, during the processes of mergers, acquisitions and corporate restructuring, of the commission of irregularities or illicit acts or the existence of vulnerabilities in the legal entities involved;
XV – Continuous monitoring of the Integrity Program, aiming at its improvement in preventing, detecting and combating the occurrence of harmful acts provided for in art. 5 of Federal Law No. 12,846 of 2013; It is
XVI – proven actions to promote ethical culture and integrity through lectures, seminars, workshops, debates and events of the same nature.
Following this perspective, the program offers several management and control tools to foster integrity and organizational compliance. This involves ensuring compliance with laws, rules, policies and internal guidelines, in addition to other regulations applicable to the institution's activity. At the same time, the program encourages the adoption of ethical standards, making both internal and external audiences aware of the importance of preventing activities and behaviors that could put the organization at risk of non-compliance.
The Integrity and Compliance program is an indispensable tool for managers of Third Sector organizations, who find support in making safer decisions and achieving their social objectives in an agile way. Thus, through its preventive approach, the program is able to significantly reduce the risks of corruption in the organization and, in the case of deviations or non-compliance, it acts quickly to identify, hold accountable and correct failures, ensuring effective action.
This Compliance Program was built based on the principles and guidelines established in the legislation and in our Code of Ethics, with the purpose of fostering and maintaining a culture of integrity in the Institution.
Moving forward in this commitment, IDAS presents its Compliance Program, which is firmly supported by its Code of Ethics and Conduct.
The Compliance Program relies on the commitment of Management and is based on 3 pillars: Prevention, Detection and Correction.
2.1 Prevention
Considered the most important pillar, it includes the analysis of compliance risks, including those related to fraud and corruption, money laundering, conflicts of interest and other practices of non-compliance or illegal acts, such as Violation of Human Rights, Privacy and Data Protection , Information Security, Regulatory Aspects, Intellectual Property, and other violations of the Code of Ethics to which IDAS is subject, in order to identify, assess and reduce risks. The Prevention pillar comprises the following subdivisions:
2.1.1 Identification of risks
It consists of mapping the areas of greatest risk, such as contracting suppliers and/or service providers, managing contracts, managing financial resources, and other related matters.
2.1.2 Risk assessment
Based on risk identification, the probability and potential impact of each risk is assessed in relation to the Institution's objectives. This assessment will be carried out using a risk matrix, which will allow the prioritization of risks according to criticality.
2.1.3 Preventive controls
Based on the risk assessment, the Compliance Officer, together with the Executive Board, defined preventive controls to minimize or eliminate the identified risks. These controls include policies and procedures, training, ongoing monitoring, internal audits and other preventive actions.
2.1.4 Communication and training
It is important to ensure that all employees, suppliers and other stakeholders are aware of compliance policies and procedures. In this way, the Compliance Program provides for on-site and online training and the dissemination of notices.
2.1.5 Continuous monitoring
To ensure the effectiveness of implemented controls, it is essential to continuously monitor compliance with compliance policies and procedures. This will be done through internal audits, periodic reviews of policies and procedures, process reviews and other monitoring activities.
2.1.6 Continuous review and improvement
Finally, the Program prompts the Institution to periodically review the compliance program to ensure its effectiveness and make the necessary adjustments. This review includes feedback from employees, evaluation of preventive controls implemented and other activities for continuous improvement of the compliance program.
3.1 Reporting Channel
The Reporting Channel is the means by which anyone can report any irregularities, such as control failures, internal and external fraud, corruption, in addition to possible breaches of IDAS' ethical principles.
The e-mail channel will be the main vehicle for receiving complaints, to be disclosed on the IDAS website and attached to communications on the Institution's physical premises. Complaints and reports received by other means, such as correspondence, telephone and social networks will also be gathered for analysis by the Compliance Sector.
It is essential for the reporting channels to function and their effective use by employees, assisted persons and individuals, compliance with the rules of confidentiality and prohibition of retaliation by those who have something to report, and the reporting can be made anonymously.
3.2 Integrity Due Diligence
Integrity Due Diligence is a process that seeks to assess the integrity risks associated with an organization, including its activities, partnerships and relationships with third parties. For IDAS, Due Diligence will ensure transparency, ethics and compliance with applicable laws and regulations in all aspects of the Institution.
The risk assessment must be carried out comprehensively and carefully, involving the identification of possible problems related to corruption, money laundering, conflicts of interest and other threats to integrity. This assessment must be carried out systematically, seeking to identify critical points, their main challenges and good practices that can be adopted to minimize risks.
In addition to risk assessment, Integrity Due Diligence includes other important steps, such as reviewing internal policies and procedures, reviewing contracts and agreements with suppliers, checking the reputation of partners and donors, and carrying out periodic due diligence assessments Diligence to ensure that IDAS maintains the same standard of integrity over time.
After the Integrity Duo Diligence opinion, the Board of Directors and other responsible parties will have an important decision-making support mechanism.
It is imperative that the integrity policies and procedures include a clear definition of disciplinary measures to be taken in cases of non-compliance with the rules, encompassing employees, partners, management and contracted third parties. These measures aim to reinforce the importance of the Compliance Program with employees, preventing it from being just a formal set of rules that are ineffective in mitigating fraud and corruption.
To ensure their effectiveness, it is essential that such measures are widely disseminated and applied, through various channels, such as posters, minutes of meetings, training and circulars. Rigorous application of these measures contributes to improving organizational culture and enhancing transparency in IDAS' relationships with donors and other stakeholders.
The Compliance Program provides for some sanctions and penalties in case of non-compliance with Ethical and Integrity obligations: warning, suspension or termination of the contract, depending on the seriousness of the misconduct.
In order to act in partnership with the Public Administration, the Institution undertakes to observe, among other regulations, Law No. 13,019/2014, which establishes the legal regime for partnerships between the public administration and civil society organizations. In order to enter into a partnership term, in turn, observe the requirements of Law nº 9.790/1999 and, for the formalization of a management contract, we pay attention to the provisions of Law nº 9.637/1998.
To this set of rules, it is important to add the already mentioned Law nº 7.753/17 (RJ), which provides for the mandatory implementation of Integrity Programs for all organizations that enter into contracts, consortia, agreements or partnerships with any body of the Public Administration, under penalty of imposition of fines and other penalties.
The Compliance Program goes through all acts of management, fundraising, relationship with the Government, administration and human resources, accounting regulation, rendering of accounts, extinction, allocation of assets and so on.
The IDAS Institution acts primarily in a preventive manner, mitigating the risk of misconduct.
Directors and other members of the Board
Compliance Officer: Elaine Cristina S. Schwab Horst
Revision: Hadassa Dorador Montanari de Moura – OAB 118.088/PR
