Towards Brazilian Corporations Better Stock Price Valuation and Operational Performance with Corporate Social Responsibility and Environmental Socio Responsibility

  • Carlos D. F. Barbosa
  • Alberto L. Francato
  • Paulo S. F. Barbosa
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)


In this chapter is presented a Brazilian capital market good initiatives and improvements: we address some stock market improvements due to corporate governance practices structure development; we discuss correlation between CSR/ESG with operating performance and stock market returns; we describe initiatives undertaken since the middle of 1990s aiming at developing a more robust capital market; we also discuss CSR in a specific sector—the electricity industry, a big business in Brazil.

The discussion of the evolution of policies, programs and practices of Corporate Social Responsibility (CSR) and Environmental Socio Responsibility (ESG) undertaken in Brazil, has raised several development issues and progresses towards growing application across companies.



We would like to thanks people from B3, FGV, and IBGC for the support on bibliographical references, especially Tiago Isaac Cury, Renato Orsato and Luis Martha.


  1. Bénabour, R., & Tirole, J. (2009). Individual and corporate social responsibility. Economica LSE, 77(305), 1–19.Google Scholar
  2. Black, B. S., Carvalho, A. G., & Gorga, E. (2010). Corporate governance in Brazil. Emerging Markets Review, 11(1), 21–38.CrossRefGoogle Scholar
  3. BM&F Bovespa. (2017). The new exchange, Sao Paulo,
  4. Brazilian corporate governance code listed companies – GT Interagentes, IBGC – Brazilian Institute of Corporate Governance, Sao Paulo (2017).Google Scholar
  5. Brazilian Law no. 13303/16 (2016). Available at
  6. Capelle-Blancard, G., & Monjon, S. (2012). Trends in the literature on socially responsible investment: Looking for the keys under the lamppost. Business Ethics: A European Review, 21, 239–250.CrossRefGoogle Scholar
  7. Cook, K. A., Romi, A. M., Sanchez, D., & Sanchez, J. M. (2015). The influence of corporate social responsibility on investment efficiency and innovation (Working paper). Available at
  8. Cunha, F. A. F. S., & Samanez, C. P. (2013). Performance analysis of sustainable investments in the Brazilian stock market: A study about the corporate sustainability index (ISE). Journal of Business Ethics, 117(1), 19–36.CrossRefGoogle Scholar
  9. Fernandes, N. (2016). Ultra novo mercado A and B: IMD case studies (Report IMD-7-1779). Available at
  10. Fontes Filho, J. R., & Balassiano, M. (2015). The problem of incentives in building corporate governance models. Corporate Ownership & Control, 5(2), 352–359.Google Scholar
  11. Freeman, R., et al. (2010). Stakeholder theory, the state of art. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  12. Haanaes, K., et al. (2012) Sustainability nears a tipping point. MIT Sloan Management Review, Research Report.Google Scholar
  13. IBRI – Brazilian Institute of Relationship with Investors, São Paulo. (2017).
  14. Jahmani, Y., & Dowling, W. A. (2012). The impact of Sarbanes-Oxley act. Journal of Business & Economics Research, 6(10).Google Scholar
  15. Kecskes, A., & York, P. A. N. (2013). Does corporate social responsibility create shareholder value? The importance of long-term investors. https://papers.ssrn/com/sol3/papers.cfm?abstract_id=2257846
  16. Leal, R. P. C., Carvalhal, A. L., & Iervolino, A. P. (2015). One decade of evolution of corporate governance practices in Brazil (Report #421), COPPEAD/UFRJ, Rio de Janeiro, Brazil.Google Scholar
  17. Lins, K. V., & Tamayo, A. (2015). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. Journal of Finance, Forthcoming European Corporate Governance Institute (ECGI) – Finance Working Paper no. 446/2015.Google Scholar
  18. Lu, W. (2016). Corporate social responsibility and firm risk: Implications from employee satisfaction. Asian Finance Association (AsianFA) 2016 Conference, Bangkok, Thailand.Google Scholar
  19. Macedo, F., et al. (2012). The value of ISE main studies and investors perspective. BM&F BOVESPA, São Paulo, Brazil.Google Scholar
  20. Matos, P. (2017). An assessment of dual-class shares in Brazil: Evidence from the Novo Mercado reform. CFA Society Brazil.Google Scholar
  21. Nollet, J., Filis, G., & Mitrokostas, E. (2015). Corporate social responsibility and financial performance: A non-linear and disaggregated approach. Economic Modelling, 52(Part B), 400–407.Google Scholar
  22. Oliveira, E. M. (2015). Corporate social responsibility and firm performance: A case study from the Brazilian electric sector. M.Sc. thesis, Pontificia Universidade Catolica, Rio de Janeiro.Google Scholar
  23. Orsato, R. J., Campos, G., Barakat, S., Nicoletti, M., & Monzoni, M. (2015a). Why join a carbon club? A study of the banks participating in the business for climate platform. Journal of Cleaner Production, 96, 387–396.CrossRefGoogle Scholar
  24. Orsato, R. J., Garcia, A., Mendes-da-Silva, W., Simonetti, R., & Monzoni, M. (2015b). Sustainability indexes: Why to join in? A study of the corporate sustainability index (ISE) in Brazil. Journal of Cleaner Production, 96, 161–170.CrossRefGoogle Scholar
  25. Porter, M., & Kramer, R. (2011). Creating shared value: How to invent capitalism and unleash a wave of innovation and growth. Harvard Business Review, 3, 63–70.Google Scholar
  26. Reverte, C. (2016). Corporate social responsibility disclosure and market valuation: Evidence from Spanish listed firms. Review of Managerial Science, 10, 411–435.CrossRefGoogle Scholar
  27. Rojas-Suarez, L. (2014). Towards strong and stable capital markets in emerging market economies (BIS Paper No. 75c). Available at SSRN:
  28. Vasques, L. (2016). Inversiones responsables en Latinoamérica: Un modelo funcional para la región. Conferencia Latinoamericana de Inversiones Responsables, IR Latam, Santiago, Chile.Google Scholar
  29. Yazbek, P., & Wiltgen, J. The advantages of being a good investor. Revista Exame, issue 31/12/2013.Google Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  • Carlos D. F. Barbosa
    • 1
  • Alberto L. Francato
    • 1
  • Paulo S. F. Barbosa
    • 1
  1. 1.University of Campinas-UnicampCampinasBrazil

Personalised recommendations