Corporate Social (IR)Responsibility in Brazil: Companies, Power and Ties Intertwined

Abstract

This chapter discusses the Operation Lava Jato (or Operation Car Wash) which is an ongoing investigation in Brazil, since 2014, by the Federal Police and the Federal Public Ministry. This Operation triggered systemic and endemic corruption among companies, self-described as socially responsible, the State, and Brazilian Government. The analysis is based on empirical data available on the internet and in the Brazilian press about “Operation Car Wash” (Operation Lava Jato) and its socio-legal implications. We conclude that when a society has a historical and cultural tradition permeated by close private and patrimonial relations between government and companies, this fact negatively impacts the economic performance and the adoption of ethical behavior and social responsibility. This case study examines the recent police investigation into corruption involving companies and governments in a Latin American country. It provides empirical and historical data on the nature of the capitalism of ties model developed in Brazil that impacts on economic performance and the strategic proposal of corporate social responsibility.

Citation

Nunes Costa, M.A., Bravo, L., Borin, E. and Pereira Filho, J.E. (2017), "Corporate Social (IR)Responsibility in Brazil: Companies, Power and Ties Intertwined", Corporate Social Responsibility and Corporate Governance (Developments in Corporate Governance and Responsibility, Vol. 11), Emerald Publishing Limited, Leeds, pp. 297-315. https://doi.org/10.1108/S2043-052320170000011014