Author: Fábio Barbosa

Source: Folha de S. Paulo - 15/08/2010

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The informal economy in the country fell from 21% of GDP in 2003 to 18,4% in 2009 without making sectors unviable
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IN THE past ARTICLE, I highlighted in this column the importance of having a Reform of Values, based on the attitude of each individual. But I see that sometimes there is yet another cloud over the daily life of our society: should companies restrict themselves to their businesses or should they take a broader look at their role in society?
In favor of the first thesis, many refer to the words of the great economist Milton Friedman, who already in the 60s said that "the business of business is business".

 
A preliminary look would indicate the suggestion that companies should focus on their activity, leaving social concerns to the State. He's not wrong, of course. However, a more provocative look at this concept would allow us to conclude that, in fact, it means that “the business of business is sustainable business”.
Heresy? I think not. It is known that the "market value" of a business is calculated based on the future prospects of that activity, brought to what is called "present value". In other words, the company needs to do something today that it can repeat tomorrow and later, always taking into account the developments that time brings to the market, such as creating an increasingly transparent environment.
We can call this “sustainable business”. In Brazil, the culture was created to say that, for a business to have good results, it is necessary to “find a way” or look for a shortcut, as it would be impossible to stay within the rules, good practices, and, even so, obtain results positive. False dilemma!

More and more we find convergence between good corporate social and environmental practices and corporate profitability. Companies that score better in terms of their socio-environmental management tend to be the most profitable as well. The list of companies indicated for having the best working environments also has a close relationship with the list of the most profitable.
Many still resist this concept and, taking advantage of the moment of the recent crisis, said that the concepts of sustainability would be abandoned in search of the most immediate profitability. Myopia of those who still do not understand the extent of what is happening.
According to studies by an American consultancy (AT Kearney), model companies in practices aimed at sustainability had better financial performance than the others, even in the crisis (... or especially in the crisis?).
The reason is simple: saving energy, recycling materials, valuing people and diversity, formalizing work relationships, among others, bring many benefits, ranging from cost reduction to greater employee engagement and productivity, ultimately achieving good image with customers, suppliers and also with the capital market.
In this context, a recent study by the Brazilian Institute of Ethics in Competition and FGV comes at a good time, showing that the participation of the informal economy in Brazil fell from 21% of GDP in 2003 to 18,4% in 2009. there is news that this path has made sectors unfeasible, or has caused great damage to the economy.

That's because there were not as many insurmountable obstacles that spread. Many were the “false dilemmas” that I referred to above, and that were gradually being demystified. I see this trajectory with optimism that tends to accelerate, not least because "informal economy" is a leniency of our colloquial language, because in fact, in most cases, it is an "illegal" act, to be combated.
What is the conclusion of all this? We need to believe that "it is possible to succeed by doing the right things, in the right way". We need to have this vision as a reference for new entrepreneurs. Some of this belief may come from the practical observation of what is already happening in companies in general. Something else must come from the vision of the country we want to build. This is called “believing to see”. We believe and position ourselves, not only to have better companies, but also to have a better Brazil.

FÁBIO C. BARBOSA, 55, a business administrator, is president of Grupo Santander Brasil and Febraban. Write monthly, on Sundays, in this space.