The tough path of legality

In developed countries, several market rules concerning labor, ethics, safety, human rights and environment are established standards – and they are complied with. "The explanation is a Government whose presence can be felt", said Oded Grajew, chairman of the Board of Instituto Ethos, in the plenary session "Advances of corporate social responsibility in the five continents".

In Brazil, Oded Grajew added, over half of the market is illegal, or ‘informal’, as it has been called. By being illegal, it is not socially responsible. Such ilegality does not occur in developed countries, at least not on such a scale, and when it does occur, consequences are more serious. "In Brazil, poverty and inequality are huge, the population is more vulnerable, for a matter of survival, it can’t afford sustainable products or services", said Grajew.

One Conference participant, at this point, stood up and told she is in the informal market. According to her, this sector exists and everyone knows that. The participant asked for alternative ways to change this situation. In addition, she stressed that this market employs many people and remains for lack of option. Oded Grajew answered that still, it is an illegal action and should be banned. Next, he told about his experience, when he had his own business and did not go informal. He paid all taxes, had formally employed workers and had to compete with illegal companies. "The fact is that the Brazilian tax and fiscal law is terrible", said Grajew.