Hrm in Brazil, an Interview

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The governing of any firm depends upon code of conducts and ethical conduct followed in the organization. If the work environment is unethical, it can lead to demotivatation and reduced level job satisfaction among employees. Ethical challenges that any firm will encounter, if wanted to set up a business in Brazil are as follows: 1. Political corruption: Brazil is highly corrupted in political ground. According to corruption index of Transparency International, It is ranked 73 as compared with China (78), India (95), Russia (143). According to PWC survey in 2005, approximately 3% of the revenue generated by a firm is used to bribe the bureaucracy and politicians. These bribes are given to fast up the procedures involved in various procedures. The main reasons behind the corruption in Brazil is absence anti-corruption agencies and complex legal system. The high level of decentralization has increased the effective implementation the law for anti-corruption. The level of bureaucracy and corruption is so high that it has increased the transaction cost in the Brazil by a large degree. This raise cost is termed as “Brazil cost”. However this cost in addition to cost factored by corruption and bureaucracy, also includes raised cost in doing business in Brazil due to high transportation cost, high tax burden, economic instability and cost paid to secure individuals from increasing crime in the country. However in recent years the situation is changing from ineffective systems to effective stringent federal officers who are trying to curb illegal political behavior. In 2011, The government has passed Freedom of Information Law, which is similar to RTI Act of India. Some 800 private local firms raised voices against corruption and form a Brazilian Pact for integrity and against corruption. 2. Dirty Money: Dirty money can be also called as black money which are accrued by the firm by manipulating the system like tax evasion, improper recording of accounts and...
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