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The Political Economy of Corporate Responsibility in Brazil - Social and Environmental Dimensions
Cappellin, Paola Giuliani,Gian Mario
Cappellin, Paola
Giuliani,Gian Mario
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Abstract
"Discourse and practices associated with corporate social and environmental responsibility (CSER) have escalated and evolved rapidly in recent years. This paper describes the CSER agenda in Brazil, examines its history, identifies the factors and actors that are encouraging firms to adopt CSER initiatives, and asks whether CSER is really making a difference in terms of social and sustainable development. Global interest in CSER expanded in the 1990s and spread to many developing countries via processes, policies and institutions often associated with globalization. But many developing countries also have their own CSER history. Interest in improving the social performance of firms in Brazil increased significantly in the 1980s, and was driven to a large extent by domestic concerns, actors and contexts. A crucial element was the diffusion of certain values and ethical principles related to democratization and progressive religious thinking. Democratization also paved the way for the expansion of civil society organizations and social movements concerned with the social and environmental impacts of business. A key actor in these developments was a sector of the business community, in particular busi-ness associations, that not only represented the economic interests of their members but also addressed philosophical and cultural issues, including the relationship of business to society. Critical of traditional corporate behaviour, this network tried to raise the social awareness of firms and promote philanthropic activities. In the 1990s the actors and institutions promoting CSER expanded considerably. Political parties, non-governmental organizations (NGOs), trade unions, the media, local government, consumers and shareholders all became involved, along with some business associations and proactive managers and firms. But among civil society organizations there are some fundamental differ-ences in approach. Trade unions, for example, consider firms in large part responsible for the deterioration of conditions in the workplace and demand the universalization of labour rights, while many NGOs tend to promote voluntary corporate social actions. The momentum behind CSER has also been reinforced by international influences and pres-sures associated with cross-border management of transnational corporations, global civil soci-ety activism, environmental certification, and international social, environmental and human rights norms and law. Another important change occurred in the 1990s. As companies sought to restructure and be-come more competitive internationally, some managers—and business management scholars—recognized the potential of using CSER initiatives as a way of reducing costs, increasing competitive advantage and managing risks and reputation. The international repercussions of Brazil’s unfavourable business image pushed them to prioritize a few specific areas including poverty, violence, child labour, education and environmental protection. And segments of business, particularly the largest firms in more dynamic sectors, assumed leadership roles in social actions, seeking to fill some of the gaps that resulted from the perception or reality of a weak public sector. CSER became part of a broader strategy to gain legitimacy; a way of cleaning up the soiled image of entrepreneurs and companies that were regarded by many as responsible for the concentration of wealth and growing speculation in financial investment. Brazilian entrepreneurs could use CSER as a tool to restore the climate of trust among workers, enhance their competitive strategy and, above all, increase consumer loyalty and community acceptance. In the context of flexible labour markets and the deregulation of labour costs, corporate social responsibility became a means of partially mitigating the social effects of these policies and processes."(pg vii)
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2004-10
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With permission of the license/copyright holder