CSR Sensemaking Applied to the Facts Related to the Collapse of the Samarco Tailings Dam

Abstract

1 This paper examines the fundamental orientation guiding the Corporate Social Responsibility (CSR) activities in the voluntary report published by Samarco -a Brazilian mining company, identifying how the company perceives itself regarding a severe environmental disaster occurred in 2015. Our analysis applied Basu and Palazzo's (2008) model based on an organizational sensemaking process to explain how the organization expresses its thinking, how it discusses and acts to cope with the accident expectancy and its consequences. We analyzed the reports that depict the tailings dam collapse, observing whether the risks and damages to the ecosystem would be mentioned and anticipated to the stakeholders. Our evidence points out that the company had not disclosed beforehand any relevant information about the real hazards or critical impacts of its operating activities. After the accident, Samarco seems to maintain its relational posture towards society. However, the practical actions signal that the company is after its own business. Abstract Revista de Contabilidade e Organizações

Sustainability Tensions: Idiosyncrasies Present in the Brumadinho Dam Tragedy in the Perception of Different Stakeholders

“…The toxic legacy of mining projects impacts human rights to life, health, safe work, safe water, food, and a healthy environment (Medeiros, Silveira, & Oliveira, 2018). Legal guidelines and federal oversight bodies need to ensure that laws, policies, and practices respect the rights of communities and workers who face such grave risks from the work of these extractive industries (Cosenza et al, 2018).…”

Firm-level indicators of instrumental and political CSR processes – A multiple case study

“…Likewise, Peters et al (2014) use the CSR as sensemaking model in exploring the conceptual relationship between CSR orientation and real option reasoning by arguing that a firm's attitude, communication, and behaviour towards CSR significantly determine whether and how the firm acknowledges, receives, and manages its strategic real options. Finally, Cosenza et al (2018) apply the model in the context of a tragedy of the collapse of a dam in Brazil to explain how Samarco, a Brazilian mining company held responsible for the tragedy, expresses its thinking, and discusses and acts to cope with the expectancy and consequences of the accident. For the purposes of our article, we suggest that taking a political approach to CSR can be differentiated from an instrumental approach to CSR along the lines of Basu and Palazzo's (2008) sensemaking dimensions.…”

Corporate Social Responsibility, Multinational Companies and Economic Globalization

“…The evidences show that these companies had not disclosed beforehand any relevant information about the real hazards or critical impacts of their operating activities. The conclusion that there is no consistency between what they think, say and do represents a distinct picture of how language use shows how companies think, feel and act (see Cosenza et al 2018). When the traditional view on CSR based on regulations (GRI, for example) is used, companies may avoid disclosing relevant facts or elements which are or might be affected by their activities.…”

“…However, a quick search on Google or the Brazilian media shows that there is a discourse opposite to the scenario outlined in that company's report. Therefore, there is a gap between what Samarco thinks and says and what it does (see Cosenza et al, 2018). This dichotomy corroborates the concern raised in this paper's argument that, despite the existence of a multiplicity of reference documents for the promotion of CSR, the relevance of these documents is configured not only to serve as parameters and justifications for the activities of MNEs, but also to legitimize their performance, obtaining a kind of approval and economic benefit from the association of their names with the CSR.…”