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Stakeholder Theory and Value Creation Models in Brazilian Firms

ABSTRACT

Objective:

The purpose of this study is to understand how top Brazilian firms think about and communicate value creation to their stakeholders.

Design/methodology/approach:

We use qualitative content analysis methodology to analyze the sustainability or annual integrated reports of the top 25 Brazilian firms by sales revenue.

Findings:

Based on our analysis, these firms were classified into three main types of stakeholder value creation models: narrow, broad, or transitioning from narrow to broad. We find that many of the firms in our sample are in a transition state between narrow and broad stakeholder value creation models. We also identify seven areas of concentration discussed by firms in creating value for stakeholders: better stakeholder relationships, better work environment, environmental preservation, increased customer base, local development, reputation, and stakeholder dialogue.

Practical implications:

This study shows a trend towards broader stakeholder value creation models in Brazilian firms. The findings of this study may inform practitioners interested in broadening their value creation models.

Originality/value:

This study adds to the discussion of stakeholder theory in the Brazilian context by understanding variations in value creation orientation in Brazil.

Keywords:
value creation; stakeholders; Brazil

Fundação Escola de Comércio Álvares Penteado Fundação Escola de Comércio Álvares Penteado, Av. da Liberdade, 532, 01.502-001 , São Paulo, SP, Brasil , (+55 11) 3272-2340 , (+55 11) 3272-2302, (+55 11) 3272-2302 - São Paulo - SP - Brazil
E-mail: rbgn@fecap.br