Globalization, characterized by economic, cultural, and political integration between countries, has a significant impact on corporate crime. The ease of movement of people, goods, and capital allows companies involved in illicit activities to diversify their operations and expand their reach. Examples of corporate crimes that benefit from globalization include money laundering, where companies can use complex international networks to launder money from illegal activities; corruption and bribery, facilitated by globalization, with companies bribing public officials in different countries to gain undue advantages; accounting fraud, where companies manipulate financial records to deceive investors and regulators, taking advantage of differences in international accounting standards; and trafficking in counterfeit goods, which harms consumers and legitimate businesses.
A notable example of corporate crime in the context of globalization is the Volkswagen case, known as “Dieselgate.” Volkswagen equipped its diesel cars with defeat devices that allowed the manipulation of nitrogen oxide (NOx) emissions during tests, while actual emissions were much higher than permitted. This case involved 11 million cars worldwide and highlighted how the complexity of international regulatory regimes can be exploited for illicit practices. Volkswagen’s fraud cannot be seen in isolation, as the company operated under a complex web of multiple regulatory regimes, resulting in significant differences in standards and rule enforcement across jurisdictions. In the United States, installing defeat devices is a criminal act, while in the European Union, Volkswagen suggested that these devices were permitted.
In Brazil, an emblematic case of corporate crime is the Petrobras scandal, revealed by Operation Car Wash. Since March 2014, it has been at the center of the country’s largest corruption scandal. Petrobras executives received bribes from private companies in exchange for contracts to execute projects. Part of the payments was transferred to political parties to fund election campaigns.
Another recent and significant case in Brazil is that of Americanas. In January 2023, “accounting inconsistencies” were discovered in the company’s financial statements, revealing a shortfall of over BRL 20 billion. The fraud involved inflating financial results to show a false increase in cash, artificially boosting the company’s stock value. The situation led Americanas to file for bankruptcy protection, with an estimated debt of nearly BRL 50.9 billion. The Federal Police and the Federal Public Prosecutor’s Office initiated Operation Disclosure, executing search and seizure warrants against former company directors, accused of accounting fraud, market manipulation, and money laundering.
Additionally, the Lockbit case highlights the growing threat of cybercrime in the globalized business context. Lockbit is one of the world’s largest cybercrime gangs, known for its ransomware attacks. This group infiltrates company systems, kidnaps data, and demands ransom to avoid leaking the stolen information. In February 2024, an international operation coordinated by security agencies from various countries, including the FBI and Europol, managed to shut down servers and freeze cryptocurrency accounts linked to Lockbit. This case illustrates how globalization and technology can be exploited for large-scale criminal activities, affecting businesses worldwide.
Combating corporate crime in the context of globalization presents various challenges. The legal complexity, with different countries having distinct legislations, makes uniform law enforcement difficult. The rapid technological evolution creates new opportunities for cybercrime, requiring companies to stay constantly updated and prepared to face these threats. Additionally, endemic corruption in many countries hinders effective law enforcement and the implementation of measures to combat corporate crime.
In Brazil, the Anti-Corruption Law (Law No. 12,846/2013) is a significant milestone in the fight against corporate crime. This law holds companies civilly liable for acts of corruption against national or foreign public administration. Furthermore, the Brazilian Penal Code provides sanctions for crimes such as active and passive corruption. The Bidding Law (Law No. 8,666/1993) and the Administrative Improbity Law (Law No. 8,429/1992) are also crucial in combating illicit practices in the business realm.
It is precisely the area of corporate criminal law that will help in presenting a set of practices and policies adopted by companies to ensure compliance with laws and regulations, preventing and detecting criminal activities. To address the challenges of corporate crime, companies and governments can adopt various preventive criminal strategies. Investing in ongoing employee training on best practices and the risks associated with corporate crime is essential. Using advanced technologies to monitor and detect suspicious activities, such as data analysis software and artificial intelligence, can be a powerful tool. Establishing partnerships with other companies, governments, and international organizations to share information and best practices is also crucial. Implementing strict internal policies that promote ethics and transparency, as well as anonymous reporting mechanisms to identify and address irregularities, are important steps to mitigate risks.
Globalization has brought significant challenges in combating corporate crime but has also provided tools and opportunities to address them. With a proactive and collaborative approach, it is possible to mitigate risks and promote a safer and more ethical business environment.