Corporate Social Responsibility in the Electricity Sector in Brazil

Abstract

Historically, the development and maintenance of electricity utilities have caused substantial social, economic, environmental, cultural and technological changes. Awareness of the full consequences of these activities can inform the foundation for socio-environmental responsibility in this sector. ANEEL, Brazil’s regulatory agency for electrical energy, requires all energy concessionaires in the country to provide an Annual Social and Environmental Responsibility Report. The report requires performance indicators to be presented as well as strategies to include social and environmental dimensions in its politics. Companies must identify their environmental impact and apply special policies in areas of environmental preservation as well as technologies developed for the control of environmental impacts. Yet, ANEEL´s CSR handbook guide released in 2006 states that the various companies are at significantly different stages of engagement vis à vis matters related to social responsibility (conduct code; corporate governance; adherence to the Global Pact). This chapter looks into Brazil’s energy sector and shows that, despite considerable efforts by ANEEL to standardize and promote better CSR practices in the electricity sector, different companies have significantly different practices in the country, which usually varies with geographical challenges, budget, and culture of the local community where they are situated.