Analysis of the social indicators of companies in the brazilian electric power sector: a panel data approach

Abstract

The present research delves into the realm of Internal Social Indicators (ISI), aiming to scrutinize and ascertain the influence of independent variables on ISI behavior within the Brazilian electric sector. The study period spans from 2013 to 2016. To achieve the research objective, an in-depth analysis of secondary data sourced from the websites of selected companies was conducted. Specifically, sustainability reports, with a focus on social reports (BS), were examined. The findings of the proposed model reveal that companies exhibiting higher investment in ISI tend to enjoy better asset profitability and maintain lower levels of indebtedness. The practical applicability of this research lies in its relevance to human resource management. It aids in identifying companies that allocate significant resources to ISI, thereby facilitating the assessment of their relationship with economic-financial indicators—whether positive or negative. Such insights pinpoint companies that excel in this aspect, offering a distinctive factor for evaluation by actuaries, employees, and stakeholders. By shedding light on the correlation between investment in ISI and financial performance, this research equips decision-makers with valuable information for strategic planning and resource allocation. Moreover, it underscores the importance of social responsibility within the corporate landscape, emphasizing the role of companies in contributing positively to society while achieving financial success. In essence, this study serves as a bridge between social impact and financial outcomes, advocating for a holistic approach to corporate management that prioritizes both profitability and social welfare. Its implications extend beyond the Brazilian electric sector, resonating with businesses worldwide that seek to balance economic goals with ethical and social considerations.