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Aracruz Celulose: best practices icon but still at risk

Author

Listed:
  • Asbjorn Osland
  • Joyce S. Osland

Abstract

Purpose - The purpose of this case study is to illustrate the global risks facing an award‐winning company known for best practices in sustainability and HRM that, nevertheless, is challenged by a contentious land dispute with indigenous communities and numerous stakeholders. Design/methodology/approach - This is a case study based primarily on secondary sources, such as reports and web sites of the company and its stakeholders. Findings - Aracruz Celulose SA, a Brazilian pulp company founded by a Norwegian, owns legal title to land claimed by indigenous communities. As a result, they face a complex array of additional stakeholders with contradictory perspectives: local and international non‐governmental organizations, various Brazilian and Norwegian Government entities, the World Bank, and investors. The company runs the risk of losing land and assets, reputation, and investors. There are few simple solutions to the dilemma of unresolved property rights and agrarian reform problematic in much of Latin America. Even Aracruz's hoped – for court ruling may not guarantee an end to conflict without a creative solution. Research limitations/implications - The controversy is ongoing and the outcomes are not yet determined. Based on one case, limited generalizations can be made. Originality/value - Numerous best practices in the operational areas under a company's control cannot completely protect firms from risks related to larger societal dilemmas and the need to negotiate win‐win solutions with stakeholders.

Suggested Citation

  • Asbjorn Osland & Joyce S. Osland, 2007. "Aracruz Celulose: best practices icon but still at risk," International Journal of Manpower, Emerald Group Publishing Limited, vol. 28(5), pages 435-450, August.
    • Handle: RePEc:eme:ijmpps:v:28:y:2007:i:5:p:435-450
    DOI: 10.1108/01437720710778411
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    Citations

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    Cited by:

    1. Andre Poyser & Dan Daugaard, 2023. "Indigenous sustainable finance as a research field: A systematic literature review on indigenising ESG, sustainability and indigenous community practices," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(1), pages 47-76, March.
    2. Manuela Gomez‐Valencia & Maria Alejandra Gonzalez‐Perez & Ana Maria Gomez‐Trujillo, 2021. "The “Six Ws” of sustainable development risks," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3131-3144, November.
    3. Maria Järlström & Essi Saru & Sinikka Vanhala, 2018. "Sustainable Human Resource Management with Salience of Stakeholders: A Top Management Perspective," Journal of Business Ethics, Springer, vol. 152(3), pages 703-724, October.
    4. Mohammad Kanan & Baha Taha & Yahya Saleh & Mohammed Alsayed & Ramiz Assaf & Mohamed Ben Hassen & Elham Alshaibani & Ali Bakir & Weam Tunsi, 2023. "Green Innovation as a Mediator between Green Human Resource Management Practices and Sustainable Performance in Palestinian Manufacturing Industries," Sustainability, MDPI, vol. 15(2), pages 1-27, January.

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