Corporate social responsibility in Brazil : a comparative analysis of two paper companies

Abstract

If being socially responsible can result in short or long-term economic benefits, then why do not all companies adopt corporate social responsibility (CSR) practices? This thesis draws on general assumptions from illustrative examples of two paper companies in Brazil--Aracruz and Riocell-- to answer this question. The two examples suggest that stakeholder pressure, managers' perceptions of the economic benefits of CSR and managers' environmental and social values affect the decisions of companies to adopt corporate social responsibility. In addition, data from these two paper companies indicate that company size and economic and political context explain the variations of CSR practices between Aracruz and Riocell. This study argues that both companies have responded to pressures from stakeholders in different ways. As a result, their corporate social responsibility practices have been different. If the goals of companies are to demonstrate increased commitment to corporate social responsibility and to strengthen these practices, businesses need to focus on extending their actions beyond compliance, and incorporate corporate social responsibility as part of their policies.