Corporate social responsibility and the purpose of corporations: how are brazilian companies adapting their strategies?

Cláudio Antonio Pinheiro Machado Filho; Decio Zylbersztajn

Corporate social responsibility and the purpose of corporations: how are brazilian companies adapting their strategies?

In: Dynamics in chains and networks

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Cláudio Antonio Pinheiro Machado Filho

Cláudio Antonio Pinheiro Machado Filho School of Business and Management of UNIMEP, University of São Paulo, Av. Prof. Luciano Gualberto, 908, Sala G-109, Cid Universitária, São Paulo/SP, CEP 05508-900, Brazil

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Decio Zylbersztajn

Decio Zylbersztajn School of Business and Management of UNIMEP, University of São Paulo, Av. Prof. Luciano Gualberto, 908, Sala G-109, Cid Universitária, São Paulo/SP, CEP 05508-900, Brazil

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Type:: Chapter

Pages:: 142–148

DOI:: https://doi.org/10.3920/9789086865260_018

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The issue of corporate social responsibility is a subject of growing debate in the academic environment. It is widely accepted that business has an ethical dimension, besides the economic and legal dimensions. But there is no consensus about the nature of the ethical dimension nor to whom businesses should be held accountable.

A group of scholars supports the stockholder view: the idea that the only social responsibility of business managers is to increase profits for the company’s owners, while respecting the rules, without fraud or deception. Another group supports the stakeholder view: business managers have duties in relation to several groups, all of whom are affected by the firm’s decisions, including clients, suppliers, employees, the community and so on.

The present paper relates the experience of a Brazilian Group (ORSA) from the corrugated box and pulp sector, which is implementing social responsibility actions in several parts of the country. The company created a foundation specifically to deal with social projects. The implications of the social responsibility actions for the company’s strategy are also addressed.

This paper addresses two interesting theoretical issues: 1) the relationship between value maximization, stakeholder theory and corporate objective function; and 2) assuming that under some conditions value maximization and social responsibility actions are not contradictory objectives, is it best to implement philanthropic actions from inside the firm or under another specialized structure, such as foundations or other third-sector entities.

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Dynamics in chains and networks

E-Book ISBN:: 9789086865260

Publisher:: Wageningen Academic

Print Publication Date:: 10 Oct 2004

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Corporate social responsibility and the purpose of corporations: how are brazilian companies adapting their strategies?

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