Corporate Social Responsibility: a critical view from the case study of Samarco’s socio environmental tragedy

Abstract

Corporate Social Responsibility models in the mining industry have often used sustainability reports and practices linked to the model of the Social License to Operate as a way to ensure the legitimacy of its operations. In Brazil, the Samarco case has challenged the implementation of both strategies, after the company, which was considered an example of social responsibility practices in the mining sector, was responsible for one of the worst social environmental tragedies in the country. This research adopts a case study of the Fundão dam collapse, to enhance the contradictions of the Corporate Social Responsibility model that contributed to the tragedy. Data collection included the company’s sustainability reports, documents from public agencies, and interviews with the company’s stakeholders affected by the tragedy. The data were worked through content analysis. The results show contradictions between the company’s documents and the perception of the community about the risks. Corporate Social Responsibility adopted by Samarco prioritized monitoring the perception of image and the company’s reputation with its different stakeholders, by reaching a high level of trust between the company and population. However, this strategy, combined with the economic dependence of the municipality, hid the operational risks of the Fundão dam resulting in increased vulnerability of the local community.

Keywords:
Corporate Social Responsibility; Sustainability report; Social license to operate; Reputation; Vulnerability