Social and environmental disclosure of the largest companies in Brazil’s agribusiness sector

Abstract

Purpose Brazil’s agribusiness sector is an acknowledged and relevant player in international markets. Companies operating in this industry have been closely observed by society with increasingly critical judgment relating to production systems and the impact of these companies. In this context, this study aims to assess the voluntary disclosure of social and environmental information of Brazilian agribusiness companies and test the determinant factors. Design/methodology/approach The research hypotheses are based on stakeholder theory, legitimacy theory and results from social and environmental disclosure studies. Confirmatory factor analysis was adopted to build the dependent variables, and the Tobit model was used for hypotheses testing. The sample includes the 150 largest agribusiness companies in Brazil. Findings The results show that the disclosure measures of agribusiness companies differ by segment and that internationalization, negative media exposure and pollution are critical factors in increased voluntary social and environmental disclosure. Practical implications Knowledge about the determinants and quality of voluntary disclosure is key in driving social responsibility policies. In addition, they are useful to executives for the preparation of social responsibility and environmental reports. Originality/value The results of this study contribute to the literature on voluntary social and environmental disclosure by providing information on an important but poorly studied sector, namely, agribusiness in Brazil.