Prof.:Renata P. de Brito. July 2013

Transcription

1 Sustainability in the Brazilian Business Context Prof.:Renata P. de Brito July 2013

2 Development Model Our Common Future Gro Brundtland Report Sustainable Development: Sustainability "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Three fundamental components to sustainable development: Environmental protection Economic growth Social equity

3 Triple Bottom Line Sustainability Sustainability includes the measurement and disclosure of results in the economic, social and environmental 3Ps Profit, People & Planet Source: Elkington (1998)

4 Brazil: Economic Context 50 Creating an industrial capital intensive base on post-war Establishing a solid Democracy Gradual opening of Brazil s economy Tackling Inflation Structuring the macro-economic pillars Sanitizing and regulating the banking system Privatization of major state-owned related companies 2000 Reducing structural inequality and systemic poverty Accelerating investment in infrastructure 2010 Reducing of interest rates spreads Source: Ernst & Young Terco (2012) 4

5 Brazil Challenges Establishing a new tax system Improving the cost-efficiency of the public sector spending Revising labor relations and its associated laws Reducing bureaucracy on doing business Developing an operational excellence culture on stateprovided services and Projects Dealing with the shortage of qualified labor Source:Ernst & Young Terco (2012) 5

6 Compared Competitiveness Profitability US X Brasil (5 years) ROA ( ) ROA ( )

7 Compared Competitiveness Competitive Advantage Brazil X U.S. firms Brazilian Firms US Firms 9% 17% 7% 6% 6% 11% 13% 12% 13% 4% 3% Dual Strategy Profit Strategy Growth Strategy 3% 3% 2% 3% 2% 2% 1% 1% Dual Strategy Profit Strategy Growth Strategy 3% 1% Brito and Brito (2013) SMLA 2013

8 Brazil Social Context Paternalism Slavery Well fare State Dictatorship

9 Brazil Social Context Social Movement 60 Brazil 2013 Impeachment

10 Brazil Environmental Context Cetesb 1965 (Brazil s EPA) Chico Mendes Constitution 1988

11 Source: Ecological Creditor and Debtor Countries 1961

12 Source: Ecological Creditor and Debtor Countries 2007

13 Cubatão - Brazil Valley of Death

14 Petrobras P36 (2001) Petrobras Investment plan Petrobras (Diesel Sulfur ppm) today 14

15 15 Deforestation

16 16

17 Public Eye Award

18 Sustainability and Business Firm Stage Civil Estrategic Opportunity Zone Mangerial Compliance Risk Zone Defensive Society Stage Latent Emerging Consolidating Institutionalized Adaptaded From Zadek, Simon HBR 09/2005

19 Native -Organic Food Business model: Production without chemical pesticides or fertilizers industrialized Expansion into other product lines Training and qualification of skilled labor Products Sugar, coffee, orange juice Differentiation Price premium Process Combining new technology with ancient traditions of cultivation A project started in thousand hectares of productive land with organic certification The largest organic agriculture project in the world

20 Source: Ones and Pinho,2005.

21 Survey: Drivers of Environmental Brazilian Firms Management Comand& Control Managerial Practices Voluntary Norms -0,113 Environmental Practices Tecnical Practices Stakeholders Demand * Sig α=5% Source: Berardi and Brito (2013)

22 Survey: Sustainability in Brazil Sustainability Strategic Planning 69% of companies consider the interests of other stakeholders Companies with public control (81%) and MNCs (71%) emphasize the analysis of risks 44% of companies surveyed do not consider longterm scenarios related to sustainability issues 48% of companies surveyed do not consider the impacts on the chain in its planning Source: Magalhães e Brito, 2012

23 Survey: Sustainability in Brazil Strategic Objectives Market Focus; 20% Multifocal; 32% Mimetism; 24% Performance Focus; 18% No strategy; 6% Source: Magalhães e Brito, 2012

24 References Berardi, P. C., & Brito, R. P. d. (2013). Motivadores da Gestão Ambiental em Empresas Brasileiras: O Papel dos Stakeholders. Paperpresentedatthe3Es VI Encontro de Estudos em Estratégia, Bento Gonçalves -Brasil. Brito, R. P. d., & Brito, L. A. L. (2012). Vantagem Competitiva e sua Relação com o Desempenho uma Abordagem Baseada em Valor. Revista de Administração Contemporânea, 16(3), Brito, R. P. d., & Berardi, P. C. (2010). Vantagem competitiva na gestão sustentável da cadeia de suprimentos: um metaestudo. Revista de Administração de Empresas, 50(2), Brito, R. P. d., & Brito, L. A. L. (2013). Competitiveness Configuration in Emerging Markets. Paper presented at the SMLA - Strategic Management Latin America, Mexico City. Elkington, J. (1998). Cannibals with Forks: The Triple Bottom Line of 21st Century Business: New Society Publishers. Ernst & Young Terco(2012) Doing Business in Rio Brazil in the path of a sustainable future. Ernst & Young Terco Rio de Janeiro Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), Magalhães, R. S., & Brito, R. P. d. (2012). Estratégias empresariais para a sustentabilidade no Brasil (pp. 43). São Paulo: Uniethos. Zadek, S. (2004). "The Path to Corporate Responsibility." Harvard Business Review 82(12): Adapted by Geoffrey J Onesand Ricardo ReisenPinho from Juliana Rozenbaumand IramYuji de Siqueira, More than a pretty face, Itaú Corretora,July 6, 2004, available at Investext, accessed November 12, 2005.

25 Thank You 25