This situation typically occurs when environmental

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This situation typically occurs when environmental issues mean cost without any competitive advantages. Few Brazilian textile companies are innovators. They are more concerned about Asia s in fl uence on the market, and they are establishing strategies involving differentiation and increased participation in international and domestic markets. These fi rms are market leaders and enjoy fi rst-mover advantages. In short, good environmental practices are viewed as an important way to capture premium pro fi ts and increase sales. Large textile companies, having international markets, appear to have more sophisticated environmental strategies than domestically oriented fi rms. These innovator companies develop green-label products to supply markets that are more sensitive to environmental issues, such as Europe, and have reviewed their pro- cesses to reduce costs, improve their images, and become more competitive. They invest in environmental technologies and efforts at production reformulation, reduction of waste, recycling, and energy and water conservation. Brazilian textile companies invest minimal resources on social issues, both internal (e.g. improved working conditions) and external (e.g. investments in education, health, or sports within local communities) (Abreu et al. 2008 ). The lack of investment on social issues re fl ects the fact that textile industry is based on tax incentives and low labor costs (Kon and Coan 2005 ). Extra bene fi ts, such as salary bonus or pro fi t incentives, when they exist are limited to large- and medium-sized enterprises. Many of the textile companies have not developed codes of ethics. Compared to China, the Brazilian textile and clothing industries are more sup- portive of the comprehensive adoption of CSR practices (Abreu et al. 2012 ). Alon et al. ( 2010 ) also found that Brazil scored higher than China in an investigation of CSR motives, processes, and stakeholder pressures. Stakeholders were more fre- quently mentioned by Brazilian fi rms. CSR activities in China emphasized both company performance and stakeholder demands. In terms of processes, in Brazil, volunteerism, health, and the environment were emphasized in corporate commu- nications. In contrast, Chinese fi rms emphasized sponsorships of arts and culture. The democratic political system in Brazil, which has been in place for almost 30 years, allows for a more transparent and rule-based governance environment. It also supports a more vocal society demanding responsible actions on environ- mental, social, and labor issues by government and business. The regulatory side of 12 M.C.S. de Abreu
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the institutional environment is the main in fl uence on the CSR practices of textile fi rms. Coercive pressures also occur through industrial metastandards, such as ISO 14001, which are imposed as supply chain requirements of international markets (Christmann and Taylor 2001 ; Zeng et al. 2005 ; Abreu et al. 2008 ). In this sense, coercive isomorphism is the dominant process in textile fi rms.
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  • Corporate social responsibility, CSR Practices

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