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Textbook Corporate Social Responsibility in Brazil Christopher Stehr Ebook All Chapter PDF
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CSR, Sustainability, Ethics & Governance
Series Editors: Samuel O. Idowu · René Schmidpeter
Corporate
Social
Responsibility
in Brazil
The Future is Now
CSR, Sustainability, Ethics & Governance
Series editors
Samuel O. Idowu, London Metropolitan University, London, United Kingdom
René Schmidpeter, Cologne Business School, Cologne, Germany
More information about this series at http://www.springer.com/series/11565
Christopher Stehr • Nina Dziatzko •
Franziska Struve
Editors
Corporate Social
Responsibility in Brazil
The Future is Now
Editors
Christopher Stehr Nina Dziatzko
German Graduate School of Management Diversia Consulting
and Law Freiberg am Neckar, Germany
Heilbronn, Germany
Franziska Struve
German Graduate School of Management
and Law
Heilbronn, Germany
This Springer imprint is published by the registered company Springer Nature Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
CSR in Brazil: The Future Is Now
Brazil the promising state of the past, known as one of the BRIC states, guided by
(as it seems nowadays) unethical politicans and managers, takes us to our topic
which is more relevant than ever: corporate social responsibility in Brazil.
It seems as if every week begins with latest corruption news of Brazilian
politicians or CEOs (see Cavazotte et al.). Of course, there are Brazilian companies
which engage in CSR in various ways within a lot of industries (see, e.g., Fuckner
et al., Flores, Pereira et al.), but at the same time there might be a different
understanding in terms of ethics and morality (see Diniz et al., see. Pires et al.).
Even the most important authorities—the presidents—are involved in the ethical
and moral challenges of today. Lula da Silva (2003–2011), Dilma Rousseff (2011–
2016), as well as Michel Temer (since 2016) are suspected to be involved in
corruption. Just as an example the bribes paid in Operation Lava Jato are estimated
to be about 2 billion euros which exceeds 1% of the Brazilian GDP 2017.
From an outsider’s perspective, these interlinkages seem to be inexplicable.
Which current and historic circumstances introduced those practices to nowadays
brazilian reality?
Two aspects which may have led to this present situation were observed when
talking with Brazilian colleagues:
At first, the corrupt environment seems to be a tolerated part of Brazilian every-
day life. “I did not expect a different reality: other representatives of the political
system and also our president will be confronted with allegations of corruption and
may be dismissed. We already suspected it to happen [. . .],” answered a conference
participant in Porto Alegre in October 2017 referring to the successful impeachment
of Dilma Rousseff.
Secondly, the current situation might be best described with a Brazilian saying:
“A esperança é a última que morre, é a primeira que mata.”—“Hope is the
v
vi CSR in Brazil: The Future Is Now
last that dies, and the first that will kill you.” This hope-based mind-set gives the
Brazilians the power to endure these long-term processes, keeping the assumed to be
common objective of the overall end of all corruption in Brazil focused.
More than 35,000 Brazilians protested in May 2017 against Temer and thereby
showed as “cidadão” their unity against the corrupt practices in the “elite of Brazil.”
At the same time, start-ups with and without a social purpose are founded with the
clear mission to change current social, political, and environmental practices in
Brazil. According to Natália Pietzsch, expert in the area of Zero-Waste Programs,
“Changing Brazil starts with changing ourselves right now.” Thereby entrepreneurs
take over the responsibilities which are currently still ignored by the government.
The effects of such an environment on the responsibility of entrepreneurs of
SMEs are described by participants of another conference in Porto Alegre (October
2017): “Now after all this Petrobras and Odebrecht decoverings our [CSR-] mea-
sures are discussed and reflected very critically from our stake holders, especially
from the financial institutions and public organizations. They doubt that we didn’t
use our activities without entering the bribe and corruption issues.”
International CSR standards and the related reporting guidelines are applied in the
Brazilian business world to different extent. In his chapter Moon shows the impact
the United Nations Global Compact and the UN Sustainable Development Goals
(SDGs) have within Brazil. The article highlights empathy and compassion as key
characteristics for the future eco- and social entrepreneurs, which leads to the recom-
mendation towards higher education institutes developing future leaders within an
according mind-set.
Further, Grüninger (see chapter in this book) mentions that multi-stakeholder
dialogues are necessary for standards and certificates, such as ISO 26000, GRI,
IIRC, ABVTEX, Utz, Fairtrade, Ethos Indicators, and further, to become effective.
Fuckner and Rezende show the importance of evaluating standards using the
example of the ISO 26000 referring to the municipal management of the city of
Sao Jose dos Pinhais. The importance of standards for reporting on sustainability got
highlighted while Marques suggests reading between the lines and therefore noticing
the importance of what is not reported.
CSR in Brazil: The Future Is Now vii
For reporting in general and especially for financial reporting, standards are neces-
sary. Candeloro explores the relationship between the CSR of financial institutions
and the creation of shared value in the long-term perspective. The interlinkages
between social outcomes and financial results based on stakeholder as well as share-
holder pressure and the code of corporate governance practices are discussed related
to the Brazilian energy sector by Barbosa et al.
Andalaft highlights the high impact of the Brazilian electricity sector on the whole
country and therefore refers to the ARIAE’s manual and the Caixa’s Guide. In
addition, Barreto and Farias point out the importance of the buying decision and
its impact on the whole supply chain referring to the examples of slave labor and
illegal deforestation. The ethical and moral viewpoint is discussed by Pires et al. in
the example of the accident by Samarco Mineracao S.A. applying the Moral outrage
Model.
When thinking about CSR in Brazil, one might tend to associate it with the
deforestation of the Amazonas or with corruption. Both are part of CSR in Brazil
and are mentioned in this book, but this view is too restrictive. Especially focusing
on corruption, it has a historic and a cultural background that needs to be taken into
consideration. The articles on compliance in this book focus on this aspect and aim
to provide sustainable solutions. The authors hope that with their contribution:
“future generations can bring momentum to social change, and therefore foster
more ethical principles in politics and business in the country” (see article by
Cavazotte et al.). The part on education will show how much effort is already put
in trying to change mind-sets through sharing information, increasing transparency,
and fostering involvement.
The term corporate social responsibility has the term social in its name. This shows
the high relevance of this branch for sustainable behavior. In this area, education
plays a particularly relevant role. Education and awareness for CSR-relevant issues
viii CSR in Brazil: The Future Is Now
help societies to take responsibility for their economic well-being without neglecting
the importance of the protection of the environment.
The contributions on education in this book are especially interesting because
they provide solutions or opportunities for the individual by giving him the chance to
contribute to CSR for society as a whole: by developing undergraduates to socially
responsible managers, by giving children from favelas the opportunity to get an
education, or by supporting NGOs to develop efficient working practices. This can
be inspiring on the individual level, as well as on the level of the Brazilian society
and for other countries.
The cases presented at the end of this book show how broadly the topic of CSR is
already anchored in Brazil: for example in the mining sector, the textile industry, and
the cosmetic branch. The case presented by Renato Flôres addresses the issues of
implementing codes of conduct in the mining sector by providing insights into the
challenges and opportunities of this attempt. This case is particularly interesting as it
can be adapted to other countries where mining also plays an important role, for
example, China. The case on the textile industry highlights the relevance of CSR
practices along the production chain. It opens up perspectives on the reduction of
waste, energy, as well as raw materials. The authors highlight the relevance of
knowledge as a driver for innovation making these changes possible. The case
about the Boticário Group shows how a company can act in a sustainable way.
CSR practices are part of the company’s long-term strategy, and it has defined
sustainability indicators. The efforts go beyond law requirements and comprise
areas such as fair work practices and relationships with customers and society. The
study conducted also reveals the perception of CSR practices within the organization
by the workforce. This devotion to CSR practices strengthens the organization’s
reputation, emphasizes the role of human resources for the implementation of these
measures, and makes the Boticário Group an example for other companies and
industries.
The articles in this book give a good overview on the current situation in Brazil
regarding CSR: the efforts already made and the way it still has to go in order to
bring its society on a level that makes it competitive in all areas and industries.
As education seems particularly relevant for the awareness of CSR, focus could
be put on studies in this field. Be it in the higher education or in the integration of
socially disadvantaged children into work life, there seem to be numerous creative
ideas. Often the implementation or financing of those projects is more difficult. The
CSR in Brazil: The Future Is Now ix
aim of this book is not only to highlight all the efforts already operated in Brazil. It
also wants to inspire and motivate our readers to continue working on the projects
and to “illuminate their paths to more conscious and humane perspectives on
sustainability and corporate responsibility” (see article by Cavazotte et al.).
xi
xii Introduction
affected communities. Further, the structure and relations within the Brazilian
electricity sector are analyzed. Reflecting the growing electricity demand of Brazil
and its dependence on centralized hydropower combined with the need of a more
efficient usage of energy resources, recommendations are given based on the
ARIAE’s manual and the Caixa’s Guide.
CSR applied to Socio-environmental Risks in the Supply Chain: Brazilian’s
Initiatives against Slave Labour and illegal Deforestation (by Ana Lizete Farias
and Nathalia Barreto)
The authors reflect from management, technical, and normative perspectives the
risks related to supply chains mainly focused on slave-like work conditions and
illegal deforestation. By defining the understanding of CSR and its evolution in
Brazil, the authors show the importance of initiatives like the Ethos Institute, the
Working Group on Sustainable Livestock (GTPS) and the Soybean Working Group
(GTS), as well as the National Pact for Eradication of Slave Labour. The contribu-
tion of financial institutions to the evaluation from CSR perspectives is shown. A
brief description of the Brazilian reality in combination with an example of envi-
ronmental pollution aims to show the Brazilian specific challenges dealing with
environmental responsibility. Including the historical evolution the prohibition of
slavery in Brazil gets evaluated and current governmental activities are shown. As a
second perspective, the authors evaluate the current situation of illegal deforestation
in the Amazon region. They conclude by addressing that “the act of buying is a
powerful political act.”
Interpretation and Adaptation of the Extended Model of Moral Outrage
in Corporate Social Irresponsibility (by Mirian Albert Pires, Anderson de
Souza Sant’ Anna, Luciana Mourao, Fatima Bayma de Oliveira)
While the previous article identified fields of illegal activities, the authors of the
following article focus on CSIR: corporate social irresponsibility. Concentrating
their study on the environmental disaster caused by Samarco Mineraçao S.A., they
develop scales demonstrating the perception of CSIR by the population based on the
Moral Outrage Model.
Curbing of Corruption in Brazilian environmental Governance: a Collective
Action and Problem-solving Approach (by Cleverson Vitório Andreoli, Rafael
Küster de Oliveira and Priscila da Mata Cavalcante)
The following article illustrates how corruption occurs, what it implicates, and how it
can be overcome. After giving a definition of corruption and as well as ecosystem
and environmental governance, the author points out their relevance for Brazil. In
this context, he exemplifies how corruption could develop in Brazil and shows
potential solution focuses.
Challenges of Implementing Corporate Compliance in Contemporary Brazil
(by Marcelo Luiz Ferreira)
Like the previous article, the following article points out which efforts Brazil has
made and is making in order to fight against corruption within its national borders.
At the same time, the author identifies a gap between theoretical claim and practical
xiv Introduction
Contributing Organization
Introduction xvii
Contents
Part II Finance
Testing the Shared Value Business Model as a Driver of Change
in Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Ana Paula Candeloro
Towards Brazilian Corporations Better Stock Price Valuation
and Operational Performance with Corporate Social Responsibility
and Environmental Socio Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . 129
Carlos D. F. Barbosa, Alberto L. Francato, and Paulo S. F. Barbosa
xix
xx Contents
Part IV Compliance
Curbing Corruption in Brazilian Environmental Governance:
A Collective Action and Problem-solving Approach . . . . . . . . . . . . . . . . 213
Rafael Küster de Oliveira, Cleverson Vitório Andreoli,
and Priscila da Mata Cavalcante
Challenges of Implementing Corporate Compliance in Contemporary
Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Marcelo Luiz Ferreira
Business Ethics in Brazil: Analyzing Discourse and Practice
of the Brazilian Contractors Involved in Operation Lava Jato . . . . . . . . 251
Flavia Cavazotte, Marcos Cohen, and Mariana Brunelli
Evolution of Corruption in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Till Alexander Backsmann and Carmen Backsmann
Part V Education
Development of Socially Responsible Leaders: Role of Undergraduate
Administration Courses in Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Anderson de Souza Sant’Anna, Fátima Bayma de Oliveira,
and Daniela Martins Diniz
CSR Through Intersectoral Partnership in the Field of Education:
The Case of “Pescar” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
Annekatrin Meißner
Uaná Volunteering: A Management Program . . . . . . . . . . . . . . . . . . . . 331
Norman de Paula Arruda Filho
Part VI Cases
A Sustainable CSR Instrument for the Brazilian Mining Sector . . . . . . . 347
Renato G. Flôres Jr
Contents xxi
xxiii
xxiv About the Authors