SOCIO-ENVIRONMENTAL DISCLOSURE AND LEGITIMACY: AN INVESTIGATION OVER THE MAJOR BRAZILIAN BANKS.

Abstract

This paper analyzes the relationship between sustainability and financial performances of the six biggest banks in Brazil. Brazilian banks were analyzed regarding their socio-environmental and economic disclosure. We collected socio-environmental data from annual reports, available on banks websites and financial data at Economática® database. Although disclosure data are not audited, which represents a limitation, these banks conduct their business in accordance with sustainable development policies and regulations, and publish information about initiatives. Methodological procedures include a content analysis, canonical correlation analysis and panel data regression providing a relationship assessment between variables. Results in this paper mostly showed a positive relationship between socio-environmental responsibility (SER) and financial performances, even considering the impacts of Brazilian crisis. The objective of this voluntary disclosure lays on companies’ legitimacy as a dialogue mechanism with society.