Social Responsibility and Sustainability Practices and Their Financial Impact on Companies

Milton Friedman, Nobel Prize winner in Economics in 1976, would say that the company’s only responsibility is to its shareholders, and that it has no obligation to society. Over the years, this doctrine has been the subject of deep criticism, whether from a social, moral, economic or financial point of view. The theme of Responsible Business is based on three pillars: environmental, social and governance, and is increasingly present on the agendas of companies, with an impact on various functional areas, including finance. Given that the main objective of companies is to maximize profits and create value for their shareholders, it is advantageous to be able to integrate responsible practices into their core business, generating a positive impact on the environment and society and, still, managing to generate positive results. It is concluded from the demonstration of the positive impact of the adoption of social responsibility (CSR) practices on financial performance, it can be an incentive to change the vision and not see a cost but rather as an investment, whose remuneration is not limited to what financial, but also socially and environmentally, directly and indirectly to the positive opinion of other stakeholders with legitimate claims such as civil society, the environment and regulatory agents.