CSR in Portugal: From a Paternalistic Approach to Lacking Contribution to Sustainable Development

Abstract

Although a high-income country, Portugal is one of the less developed European countries and social issues are deemed very important still today. CSR in Portugal is still focused on such issues. In the wake of a tradition of social intervention institutions, under the dictatorship regime (1926–1974), some of the larger companies developed a paternalistic approach towards their employees. This has disappeared after the 1974 revolution. Since then and until recently, in part due to the passive attitude and the low priority given to CSR by the governmental bodies, the state of CSR divulgation in Portugal could be characterized as “incipient”. However, a change occurred in the beginning of twenty-first century, when a group of events within CSR has taken place in Portugal to promote the concept and socially responsible practices. There are some signs of positive evolutions regarding how Portuguese companies define their engagement with CSR. In 2013, four large Portuguese companies (PT, EDP, BES and Galp Energia) integrate the DJSI. On the other hand, CSR is already significantly present within Portuguese SMEs’ reality and is deemed an important internal management resource. Notwithstanding, there are still major weaknesses to be addressed, such as those of the fight against corruption, tax behaviour and corporate political connections.