Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies

This paper aims to evaluate the maturity of Brazilian companies regarding the inclusion of local communities in sustainability reporting. The analysis was based on sustainability reports from a sample of 26 companies listed on the Brazilian stock exchange sustainability index. The study employs a mi...

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Main Authors: Elcio Rodrigues Damaceno, Jefferson de Souza Pinto, Tiago F. A. C. Sigahi, Gustavo Hermínio Salati Marcondes de Moraes, Walter Leal Filho, Rosley Anholon
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:AppliedMath
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Online Access:https://www.mdpi.com/2673-9909/5/2/42
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author Elcio Rodrigues Damaceno
Jefferson de Souza Pinto
Tiago F. A. C. Sigahi
Gustavo Hermínio Salati Marcondes de Moraes
Walter Leal Filho
Rosley Anholon
author_facet Elcio Rodrigues Damaceno
Jefferson de Souza Pinto
Tiago F. A. C. Sigahi
Gustavo Hermínio Salati Marcondes de Moraes
Walter Leal Filho
Rosley Anholon
author_sort Elcio Rodrigues Damaceno
collection DOAJ
description This paper aims to evaluate the maturity of Brazilian companies regarding the inclusion of local communities in sustainability reporting. The analysis was based on sustainability reports from a sample of 26 companies listed on the Brazilian stock exchange sustainability index. The study employs a mixed-methods approach and includes the following sequential steps: literature review and content analysis of sustainability reporting standards to identify critical success factors; application of the CRITIC method to define weights for decision criteria; analysis of corporate practices related to the inclusion of local communities in sustainability reports performed by Brazilian companies to determine maturity levels using the Grey Fixed Weighted Clustering method and the Kernel technique. The findings reveal that transparency, comprehensive assessment, and accountability are the most critical factors of sustainability reporting maturity regarding local communities. The analysis shows that companies in the energy sector perform better and can serve as a benchmark for companies in other sectors, such as manufacturing, in which most companies present low maturity. Key corporate practices are identified and discussed for improving engagement with local communities aiming to enhance corporate social responsibility and sustainability reporting. This study advances the understanding of corporate sustainability by highlighting the role of businesses in fostering socio-economic development through the inclusion of local communities in sustainability reporting. It extends theoretical discussions on corporate social responsibility by emphasizing transparency, accountability, and comprehensive assessment as critical factors for sustainability reporting. Practically, the findings provide insights for companies seeking to enhance engagement with local communities, offering a benchmark for industries with lower maturity levels. By demonstrating how sustainability reporting can serve as a strategic tool for social impact, the study reinforces the broader role of businesses in sustainable development.
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spelling doaj-art-c1bb0cff32b2497089edc3a633418d062025-08-20T03:32:28ZengMDPI AGAppliedMath2673-99092025-04-01524210.3390/appliedmath5020042Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian CompaniesElcio Rodrigues Damaceno0Jefferson de Souza Pinto1Tiago F. A. C. Sigahi2Gustavo Hermínio Salati Marcondes de Moraes3Walter Leal Filho4Rosley Anholon5School of Mechanical Engineering, State University of Campinas, Campinas 13083-860, BrazilSchool of Mechanical Engineering, State University of Campinas, Campinas 13083-860, BrazilDepartment of Production Engineering, Polytechnic School, University of São Paulo, São Paulo 05508-010, BrazilSchool of Applied Sciences, State University of Campinas, Limeira 13484-350, BrazilResearch and Transfer Centre “Sustainable Development and Climate Change Management”, Hamburg University of Applied Sciences, D-21033 Hamburg, GermanySchool of Mechanical Engineering, State University of Campinas, Campinas 13083-860, BrazilThis paper aims to evaluate the maturity of Brazilian companies regarding the inclusion of local communities in sustainability reporting. The analysis was based on sustainability reports from a sample of 26 companies listed on the Brazilian stock exchange sustainability index. The study employs a mixed-methods approach and includes the following sequential steps: literature review and content analysis of sustainability reporting standards to identify critical success factors; application of the CRITIC method to define weights for decision criteria; analysis of corporate practices related to the inclusion of local communities in sustainability reports performed by Brazilian companies to determine maturity levels using the Grey Fixed Weighted Clustering method and the Kernel technique. The findings reveal that transparency, comprehensive assessment, and accountability are the most critical factors of sustainability reporting maturity regarding local communities. The analysis shows that companies in the energy sector perform better and can serve as a benchmark for companies in other sectors, such as manufacturing, in which most companies present low maturity. Key corporate practices are identified and discussed for improving engagement with local communities aiming to enhance corporate social responsibility and sustainability reporting. This study advances the understanding of corporate sustainability by highlighting the role of businesses in fostering socio-economic development through the inclusion of local communities in sustainability reporting. It extends theoretical discussions on corporate social responsibility by emphasizing transparency, accountability, and comprehensive assessment as critical factors for sustainability reporting. Practically, the findings provide insights for companies seeking to enhance engagement with local communities, offering a benchmark for industries with lower maturity levels. By demonstrating how sustainability reporting can serve as a strategic tool for social impact, the study reinforces the broader role of businesses in sustainable development.https://www.mdpi.com/2673-9909/5/2/42sustainability reportinglocal communitiesstakeholder engagementdecision-makingcorporate social responsibilitymulticriteria decision analysis
spellingShingle Elcio Rodrigues Damaceno
Jefferson de Souza Pinto
Tiago F. A. C. Sigahi
Gustavo Hermínio Salati Marcondes de Moraes
Walter Leal Filho
Rosley Anholon
Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
AppliedMath
sustainability reporting
local communities
stakeholder engagement
decision-making
corporate social responsibility
multicriteria decision analysis
title Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
title_full Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
title_fullStr Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
title_full_unstemmed Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
title_short Incorporating Local Communities into Sustainability Reporting: A Grey Systems-Based Analysis of Brazilian Companies
title_sort incorporating local communities into sustainability reporting a grey systems based analysis of brazilian companies
topic sustainability reporting
local communities
stakeholder engagement
decision-making
corporate social responsibility
multicriteria decision analysis
url https://www.mdpi.com/2673-9909/5/2/42
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