Sustainable behavior: is it needed to be encouraged?

Abstract

This teaching case discusses the growing relevance of Corporate Social Responsibility in the corporate context. Increasingly, actions that have built-in concerns about the environment, the social and the governance are required. Several strategies can be followed to make socially responsible actions being adopted. In this sense, incentive plans for executives linked to ESG metrics (Environmental, Social and Governance) have been adopted, and relationships between these plans and companies’ ESG indicators have been observed. In Brazil, a company that publicly adhered to these plans was Gerdau and, therefore, this study, based on news published on the subject about the company, addresses the theme of incentive and compensation systems that adopt ESG metrics.