Corruption and corporate social responsibility codes of conduct: The case of Petrobras and the oil and gas sector in Brazil

Abstract

Corruption and combating corruption is one of the most important challenges for both developing and developed countries. Corruption is a serious threat to principles and values of any government. It undermines the enforcement of the rule of law and compromises democracy. In the early 1990s, corporate social responsibility (CSR) codes of conduct emerged as an effective mechanism for integrating responsible economic practices against corruption. However, the question that arises is whether this self-regulatory instrument has any impact on the practice and policy of companies with respect to corruption. This study addresses this question through an analysis of the provisions related to corruption issues embodied in international conventions and guidelines, the norms or standards of oil and gas associations, NGOs, international and multilateral organizations. In particular, this paper examines how Petrobras, the giant Brazilian oil and gas company, responds to corruption in its CSR code of conduct. Using a comparative analysis of Petrobras’ policy and practice as expressed in its CSR statements and the related provisions embodied in the international framework, this study examines the extent to which provisions included in Petrobras’ CSR code of conduct are consistent with the belief of the current international framework system. Finally, this paper investigates the responses to questionnaires related to CSR codes of conduct of oil and gas companies operating in Brazil.