An analysis of anti-fraud policies presents in codes of ethics and conduct in B3 listed companies: the relationship between top and tone at the top
Keywords:
Code of ethics; Tone at the top; Board of directors; Audit Committee.
Abstract
Objective: The present study investigated the relationships between the characteristics of the board of directors and the audit committee in the anti-fraud policies present in the codes of ethics and conduct of companies listed on B3.
Method: To measure anti-fraud policies, a checklist was prepared based on the guidelines of the Sarbanes-Oxley (SOX) and Foreign Corrupt Practices Act (FCPA) Laws of the United States and guidelines of the Controladoria-Geral da União (CGU) and the Instituto Brasileiro de Governança Corporativa (IBGC) in Brazil. The method used to test the relationships between the characteristics of boards of directors and audit committes was Tobit regression.
Results: The results showed that the non-duality characteristics of the CEO as chairman of the Board of Directors and the expertise of the Audit Committee members contribute to a high level of anti-fraud policies being present in the codes of ethics and conduct of Brazilian companies. Also, the results showed that there are positive relationships with the listing in a differentiated segment of Corporate Governance – Novo Mercado, and with the hiring of a big four audit, both contribute to the implementation of robust anti-fraud policies and a strong tone from the top.
Contributions: The results presented contribute to the capital market and regulators with implications for companies interested in good Corporate Governance practices in the structuring of both committees, hiring qualified members, and robust and anti-fraud policies in their codes of ethics and conduct, thus strengthening the formal dissemination of tone at the top.
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References
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Braumann, E. C., Grabner, I., & Posch, A. (2020). Tone from the top in risk management: A complementarity perspective on how control systems influence risk awareness. Accounting, organizations and society, 84, 101128. https://doi.org/10.1016/j.aos.2020.101128
Calderón-Cuadrado, R., Álvarez-Arce, J. L., Rodríguez-Tejedo, I., & Salvatierra, S. (2009). “Ethics hotlines” in transnational companies: A comparative study. Journal of Business Ethics, 88(1), 199-210. https://doi.org/10.1007/s10551-009-0110-4
Chhaochharia, V., & Grinstein, Y. (2009). CEO compensation and board structure. The Journal of Finance, 64(1), 231-261. https://doi.org/10.1111/j.1540-6261.2008.01433.x
Chordiya, R., Sabharwal M., Relly, J. E., & Berman, E. M. (2020). Organizational protection for whistleblowers: a cross-national study. Public Management Review, 22(4), 527-552. https://doi.org/10.1080/14719037.2019.1599058
Controladoria Geral da União. (2015). Programa de integridade diretrizes para empresas privadas.
Decreto n. 8.420, de 18 de março de 2015 (2015). Regulamenta a Lei nº 12.846, de 1º de agosto de 2013, que dispõe sobre a responsabilização administrativa de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira e dá outras providências. Brasília. 2015. Recuperado em 04 dezembro, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2015-2018/2015/decreto/d8420.htm
Department of Justice, & Securities and Exchange Commission. (2020). A Resource Guide to the U.S. Foreign Corrupt Practices Act. Recuperado em 10 novembro, 2020, de https://www.justice.gov/criminal-fraud/file/1306671/download
Gao, J., Greenberg, R., & Wong-on-wing, B. (2014). Whistleblowing Intentions of Lower-Level Employees: The Effect of Reporting Channel, Bystanders, and Wrongdoer Power Status. Journal of Business Ethics, 126(1), 85-99. https://doi.org/10.1007/s10551-013-2008-4
Hansen, J., Stephens, N. M., & Wood, D. A. (2009). Entity-level controls: The internal auditor’s assessment of management tone at the top. Current Issues in Auditing, 3(1), 1-13. https://doi.org/10.2308/ciia.2009.3.1.A1
Hirth-Goebel, T. F., & Weißenberger, B. E. (2019). Management accountants and ethical dilemmas: How to promote ethical intention?. Journal of Management Control, 30(3), 287-322. https://doi.org/10.1007/s00187-019-00288-7
Holtz, L., & Sarlo, A., Neto (2014). Efeitos das características do conselho de administração sobre a qualidade da informação contábil no Brasil. Revista Contabilidade & Finanças, 25(66), 255-266. https://doi.org/10.1590/1808-057x201412010
Instituto Brasileiro de Governança Corporativa. (2015). Código das melhores práticas de governança corporativa. Recuperado em 10 janeiro, 2020, de https://conhecimento.ibgc.org.br/Paginas/Publicacao.aspx?PubId=21138
Instituto Brasileiro de Governança Corporativa. (2017). Orientações sobre comitês de auditoria. Recuperado em 01 março, 2021, de https://conhecimento.ibgc.org.br/Paginas/Publicacao.aspx?PubId=23485#:~:text=O%20comit%C3%AA%20de%20auditoria%20%C3%A9,e%20do%20gerenciamento%20de%20riscos.
Johansson, E., & Carey, P. (2016). Detecting fraud: the role of the anonymous reporting channel. Journal of Business Ethics, 139(2), 391-409. https://doi.org/10.1007/s10551-015-2673-6
Kaptein, M., (2002), Guidelines for the Development of an Ethics Safety Net. Journal of Business Ethics, 41(3), 217–234. https://doi.org/10.1023/A:1021221211283
Kenny, K., Fotaki, M., & Scriver, S., (2018). Mental Heath as a Weapon: Whistleblower Retaliation and Normative Violence. Journal of Business Ethics, 160(3), 801-815. https://doi.org/10.1007/s10551-018-3868-4
Kent, P., Routledge, J., & Stewart, J. (2010). Innate and discretionary accruals quality and corporate governance. Accounting and Finance, 50(1), 171–195. https://doi.org/10.1111/j.1467-629X.2009.00321.x
KPMG (2020). Parcerias com escritórios de advocacia em serviços forenses estratégicos. Disponível em: https://home.kpmg/br/pt/home/servicos/consultoria/risk-consulting/forensic-services/law-firms.html
Krishnan, J. (2005). Audit committee quality and internal control: an empirical analysis. The accounting review, 80(2), 649-675. https://doi.org/10.2308/accr.2005.80.2.649
Lee, G., & Fargher N., (2013). Companies’ Use of Whistle-Blowing to Detect Fraud: An Examination of Corporate Whistle-Blowing Policies. Journal of Business Ethics, 114(2), 283-295. https://doi.org/10.1007/s10551-012-1348-9
Lee, G., & Fargher N. L., (2018). The Role of the Audit Committee in Their Oversight of whistle-blowing. Auditing: A Journal of Practice & Theory, 37(1), 167-189. https://doi.org/10.2308/ajpt-51769
Lei n. 12.846, de 01 de agosto de 2013 (2013). Dispõe sobre a responsabilização administrativa e civil de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira, e dá outras providências. Recuperado em 31 março, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2013/lei/l12846.htm
Lei n. 12.846, de 01 de agosto de 2013 (2013). Dispõe sobre a responsabilização administrativa e civil de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira, e dá outras providências. Recuperado em 31 março, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2013/lei/l12846.htm
Libby, R., Bloomfield, R., & Nelson, M. W. (2002). Experimental research in financial accounting. Accounting, organizations and society, 27(8), 775-810. https://doi.org/10.1016/S0361-3682(01)00011-3
Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The Business Lawyer, 48(1), 59-77. https://www.jstor.org/stable/40687360
Maragno, L. M. D. & Borba, J. A., Audit Committee Quality and Best Practices of Whistleblowing: Evidence From Brazilian Companies (August 29, 2021). http://dx.doi.org/10.2139/ssrn.3913542
Martins, O. S., & Ventura, R. Jr. (2020). Influência da Governança Corporativa na
mitigação de relatórios financeiros fraudulentos. Revista Brasileira Gestão Negócios, 22(1), 65-84. https://doi.org/10.7819/rbgn.v22i1.4039
Mustafa, S. T., & Youssef, N. B. (2010). Audit committee financial expertise and misappropriation of assets. Managerial Auditing Journal, 25(3), 208-225. https://doi.org/10.1108/02686901011026323
Nanthini, S., Ahmad, N., & Husin, N. M. (2020). The Influence of Board Characteristics towards the Effectiveness of Whistleblowing Policy: An Internal Auditors’ Perceptions. International Journal of Business Management (IJBM), 3(1), 1-14.
Pacella, M. J., (2018). Silencing whistleblowers by contract. American Business Law Journal, 55(2), 261-313. https://doi.org/10.1111/ablj.12121
Patelli, L., & Pedrini, M. (2015). Is tone at the top associated with financial reporting aggressiveness?. Journal of Business Ethics, 126(1), 3-19. https://doi.org/10.1007/s10551-013-1994-6
Pelletier, K. L. & Bligh, M. C., (2008). The Aftermath of Organizational Corruption: Employee Attributions and Emotional Reactions. Journal of Business Ethics, 80 (4), 823–844. https://doi.org/10.1007/s10551-007-9471-8
Pope, K. R., & Lee, C., (2013). Could the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 be Helpful in Reforming Corporate America? An Investigation on Financial Bounties and Whistle-Blowing Behaviors in the Private Sector. Journal of Business Ethics, 112(4), 597-607. https://doi.org/10.1007/s10551-012-1560-7
Razali, W. A. A. W. M., & Arshad, R. (2014). Disclosure of corporate governance structure and the likelihood of fraudulent financial reporting. Procedia-Social and Behavioral Sciences, 145(25), 243-253. https://doi.org/10.1016/j.sbspro.2014.06.032
Rosseti, J. P.; Andrade, A. Governança corporativa: fundamentos, desenvolvimento e tendências. 7. ed. São Paulo: Atlas, 2022.
Schlup, D., Cunha, P. R., Soschinski, C. K., & Silva, A. (2018). Influência do comitê de auditoria e suas características na assimetria da informação em empresas brasileiras. Enfoque, 1(39), 41-55. https://doi.org/10.4025/enfoque.v39i1.44011
Schwartz, M. S., Dunfee, T. W., & Kline, M. J. (2005). Tone at the top: An ethics code for directors? Journal of Business Ethics, 58(1), 79-100. https://doi.org/10.1007/s10551-005-1390-y
Silva, A., Cunha da P. R., & Teixeira S. A. (2018). Recomendações aos comitês de auditoria em empresas brasileiras. Revista de Contabilidade e Organizações, 12. https://doi.org/10.11606/issn.1982-6486.rco.2018.138529
Silveira, A. M. (2014). Governança corporativa: o essencial para líderes. (1a ed). Rio de Janeiro: Elsevier.
Singh, F. B. (2006). A Comparison of the Contents of the Codes of Ethics of Canada’s Largest Corporations in 1992 and 2003. Journal of Business Ethics, 64(1), 17–29. https://doi.org/10.1007/s10551-005-2408-1
Stöber, T., Kotzian, P., & WeiBenberger, B. E. (2019). Design matters: on the impact of compliance program design on corporate ethics. Business Research, 12(2), 383-424. https://doi.org/10.1007/s40685-018-0075-1
Vafeas, N. (2005). Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research, 22(4), 1093-1122. https://doi.org/10.1506/1QYN-2RFQ-FKYX-XP84
Warren, D. E., Peytcheva, M., & Gaspar, J. P. (2015). When ethical tones at the top conflict: Adapting priority rules to reconcile conflicting tones. Business Ethics Quarterly, 25(4), 559-582. https://doi.org/10.1017/beq.2015.40
Weber, J., & Wasieleski, D. M. (2013). Corporate Ethics and Compliance Programs: A Report, Analysis and Critique. Journal of Business Ethics. 112(4), 609-626. https://doi.org/10.1007/s10551-012-1561-6
Xie, B., Davidson, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: The role of the board and the audit committee. Journal of Corporate Finance, 9(3), 295-316. https://doi.org/10.1016/S0929-1199(02)00006-8
Association of Certified Fraud Examiners. (ACFE). 2020. Report to the Nations. Disponível em: https://legacy.acfe.com/report-to-the-nations/2020/
Braumann, E. C., Grabner, I., & Posch, A. (2020). Tone from the top in risk management: A complementarity perspective on how control systems influence risk awareness. Accounting, organizations and society, 84, 101128. https://doi.org/10.1016/j.aos.2020.101128
Calderón-Cuadrado, R., Álvarez-Arce, J. L., Rodríguez-Tejedo, I., & Salvatierra, S. (2009). “Ethics hotlines” in transnational companies: A comparative study. Journal of Business Ethics, 88(1), 199-210. https://doi.org/10.1007/s10551-009-0110-4
Chhaochharia, V., & Grinstein, Y. (2009). CEO compensation and board structure. The Journal of Finance, 64(1), 231-261. https://doi.org/10.1111/j.1540-6261.2008.01433.x
Chordiya, R., Sabharwal M., Relly, J. E., & Berman, E. M. (2020). Organizational protection for whistleblowers: a cross-national study. Public Management Review, 22(4), 527-552. https://doi.org/10.1080/14719037.2019.1599058
Controladoria Geral da União. (2015). Programa de integridade diretrizes para empresas privadas.
Decreto n. 8.420, de 18 de março de 2015 (2015). Regulamenta a Lei nº 12.846, de 1º de agosto de 2013, que dispõe sobre a responsabilização administrativa de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira e dá outras providências. Brasília. 2015. Recuperado em 04 dezembro, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2015-2018/2015/decreto/d8420.htm
Department of Justice, & Securities and Exchange Commission. (2020). A Resource Guide to the U.S. Foreign Corrupt Practices Act. Recuperado em 10 novembro, 2020, de https://www.justice.gov/criminal-fraud/file/1306671/download
Gao, J., Greenberg, R., & Wong-on-wing, B. (2014). Whistleblowing Intentions of Lower-Level Employees: The Effect of Reporting Channel, Bystanders, and Wrongdoer Power Status. Journal of Business Ethics, 126(1), 85-99. https://doi.org/10.1007/s10551-013-2008-4
Hansen, J., Stephens, N. M., & Wood, D. A. (2009). Entity-level controls: The internal auditor’s assessment of management tone at the top. Current Issues in Auditing, 3(1), 1-13. https://doi.org/10.2308/ciia.2009.3.1.A1
Hirth-Goebel, T. F., & Weißenberger, B. E. (2019). Management accountants and ethical dilemmas: How to promote ethical intention?. Journal of Management Control, 30(3), 287-322. https://doi.org/10.1007/s00187-019-00288-7
Holtz, L., & Sarlo, A., Neto (2014). Efeitos das características do conselho de administração sobre a qualidade da informação contábil no Brasil. Revista Contabilidade & Finanças, 25(66), 255-266. https://doi.org/10.1590/1808-057x201412010
Instituto Brasileiro de Governança Corporativa. (2015). Código das melhores práticas de governança corporativa. Recuperado em 10 janeiro, 2020, de https://conhecimento.ibgc.org.br/Paginas/Publicacao.aspx?PubId=21138
Instituto Brasileiro de Governança Corporativa. (2017). Orientações sobre comitês de auditoria. Recuperado em 01 março, 2021, de https://conhecimento.ibgc.org.br/Paginas/Publicacao.aspx?PubId=23485#:~:text=O%20comit%C3%AA%20de%20auditoria%20%C3%A9,e%20do%20gerenciamento%20de%20riscos.
Johansson, E., & Carey, P. (2016). Detecting fraud: the role of the anonymous reporting channel. Journal of Business Ethics, 139(2), 391-409. https://doi.org/10.1007/s10551-015-2673-6
Kaptein, M., (2002), Guidelines for the Development of an Ethics Safety Net. Journal of Business Ethics, 41(3), 217–234. https://doi.org/10.1023/A:1021221211283
Kenny, K., Fotaki, M., & Scriver, S., (2018). Mental Heath as a Weapon: Whistleblower Retaliation and Normative Violence. Journal of Business Ethics, 160(3), 801-815. https://doi.org/10.1007/s10551-018-3868-4
Kent, P., Routledge, J., & Stewart, J. (2010). Innate and discretionary accruals quality and corporate governance. Accounting and Finance, 50(1), 171–195. https://doi.org/10.1111/j.1467-629X.2009.00321.x
KPMG (2020). Parcerias com escritórios de advocacia em serviços forenses estratégicos. Disponível em: https://home.kpmg/br/pt/home/servicos/consultoria/risk-consulting/forensic-services/law-firms.html
Krishnan, J. (2005). Audit committee quality and internal control: an empirical analysis. The accounting review, 80(2), 649-675. https://doi.org/10.2308/accr.2005.80.2.649
Lee, G., & Fargher N., (2013). Companies’ Use of Whistle-Blowing to Detect Fraud: An Examination of Corporate Whistle-Blowing Policies. Journal of Business Ethics, 114(2), 283-295. https://doi.org/10.1007/s10551-012-1348-9
Lee, G., & Fargher N. L., (2018). The Role of the Audit Committee in Their Oversight of whistle-blowing. Auditing: A Journal of Practice & Theory, 37(1), 167-189. https://doi.org/10.2308/ajpt-51769
Lei n. 12.846, de 01 de agosto de 2013 (2013). Dispõe sobre a responsabilização administrativa e civil de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira, e dá outras providências. Recuperado em 31 março, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2013/lei/l12846.htm
Lei n. 12.846, de 01 de agosto de 2013 (2013). Dispõe sobre a responsabilização administrativa e civil de pessoas jurídicas pela prática de atos contra a administração pública, nacional ou estrangeira, e dá outras providências. Recuperado em 31 março, 2020, de http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2013/lei/l12846.htm
Libby, R., Bloomfield, R., & Nelson, M. W. (2002). Experimental research in financial accounting. Accounting, organizations and society, 27(8), 775-810. https://doi.org/10.1016/S0361-3682(01)00011-3
Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The Business Lawyer, 48(1), 59-77. https://www.jstor.org/stable/40687360
Maragno, L. M. D. & Borba, J. A., Audit Committee Quality and Best Practices of Whistleblowing: Evidence From Brazilian Companies (August 29, 2021). http://dx.doi.org/10.2139/ssrn.3913542
Martins, O. S., & Ventura, R. Jr. (2020). Influência da Governança Corporativa na
mitigação de relatórios financeiros fraudulentos. Revista Brasileira Gestão Negócios, 22(1), 65-84. https://doi.org/10.7819/rbgn.v22i1.4039
Mustafa, S. T., & Youssef, N. B. (2010). Audit committee financial expertise and misappropriation of assets. Managerial Auditing Journal, 25(3), 208-225. https://doi.org/10.1108/02686901011026323
Nanthini, S., Ahmad, N., & Husin, N. M. (2020). The Influence of Board Characteristics towards the Effectiveness of Whistleblowing Policy: An Internal Auditors’ Perceptions. International Journal of Business Management (IJBM), 3(1), 1-14.
Pacella, M. J., (2018). Silencing whistleblowers by contract. American Business Law Journal, 55(2), 261-313. https://doi.org/10.1111/ablj.12121
Patelli, L., & Pedrini, M. (2015). Is tone at the top associated with financial reporting aggressiveness?. Journal of Business Ethics, 126(1), 3-19. https://doi.org/10.1007/s10551-013-1994-6
Pelletier, K. L. & Bligh, M. C., (2008). The Aftermath of Organizational Corruption: Employee Attributions and Emotional Reactions. Journal of Business Ethics, 80 (4), 823–844. https://doi.org/10.1007/s10551-007-9471-8
Pope, K. R., & Lee, C., (2013). Could the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 be Helpful in Reforming Corporate America? An Investigation on Financial Bounties and Whistle-Blowing Behaviors in the Private Sector. Journal of Business Ethics, 112(4), 597-607. https://doi.org/10.1007/s10551-012-1560-7
Razali, W. A. A. W. M., & Arshad, R. (2014). Disclosure of corporate governance structure and the likelihood of fraudulent financial reporting. Procedia-Social and Behavioral Sciences, 145(25), 243-253. https://doi.org/10.1016/j.sbspro.2014.06.032
Rosseti, J. P.; Andrade, A. Governança corporativa: fundamentos, desenvolvimento e tendências. 7. ed. São Paulo: Atlas, 2022.
Schlup, D., Cunha, P. R., Soschinski, C. K., & Silva, A. (2018). Influência do comitê de auditoria e suas características na assimetria da informação em empresas brasileiras. Enfoque, 1(39), 41-55. https://doi.org/10.4025/enfoque.v39i1.44011
Schwartz, M. S., Dunfee, T. W., & Kline, M. J. (2005). Tone at the top: An ethics code for directors? Journal of Business Ethics, 58(1), 79-100. https://doi.org/10.1007/s10551-005-1390-y
Silva, A., Cunha da P. R., & Teixeira S. A. (2018). Recomendações aos comitês de auditoria em empresas brasileiras. Revista de Contabilidade e Organizações, 12. https://doi.org/10.11606/issn.1982-6486.rco.2018.138529
Silveira, A. M. (2014). Governança corporativa: o essencial para líderes. (1a ed). Rio de Janeiro: Elsevier.
Singh, F. B. (2006). A Comparison of the Contents of the Codes of Ethics of Canada’s Largest Corporations in 1992 and 2003. Journal of Business Ethics, 64(1), 17–29. https://doi.org/10.1007/s10551-005-2408-1
Stöber, T., Kotzian, P., & WeiBenberger, B. E. (2019). Design matters: on the impact of compliance program design on corporate ethics. Business Research, 12(2), 383-424. https://doi.org/10.1007/s40685-018-0075-1
Vafeas, N. (2005). Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research, 22(4), 1093-1122. https://doi.org/10.1506/1QYN-2RFQ-FKYX-XP84
Warren, D. E., Peytcheva, M., & Gaspar, J. P. (2015). When ethical tones at the top conflict: Adapting priority rules to reconcile conflicting tones. Business Ethics Quarterly, 25(4), 559-582. https://doi.org/10.1017/beq.2015.40
Weber, J., & Wasieleski, D. M. (2013). Corporate Ethics and Compliance Programs: A Report, Analysis and Critique. Journal of Business Ethics. 112(4), 609-626. https://doi.org/10.1007/s10551-012-1561-6
Xie, B., Davidson, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: The role of the board and the audit committee. Journal of Corporate Finance, 9(3), 295-316. https://doi.org/10.1016/S0929-1199(02)00006-8
Published
2025-07-06
How to Cite
Souza Sebastião, M., Martins Dias Maragno, L., & Alonso Borba, J. (2025). An analysis of anti-fraud policies presents in codes of ethics and conduct in B3 listed companies: the relationship between top and tone at the top. Enfoque: Reflexão Contábil, 44(2), 84-102. https://doi.org/10.4025/enfoque.v44i2.67789
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