Transaction and Conduct Adjustment Terms and the Samarco Case : An Analysis From the Perspective of International Theories of Corporate Responsibility

The responsibility of companies for the social and environmental impacts caused by their activities is a subject that is progressively discussed in the international context. Also, in Brazil, this subject is increasingly attracting attention, especially after the recent mineral dam disruptions in Mariana and in Brumadinho, in the Minas Gerais state. This article focuses on the tragedy occurred in the Mariana municipality. It analyzes the proposed remedies by the transaction and conduct adjustment terms (TTAC) signed by companies and state agencies. The article further analyzes if such a TTAC, signed on March 2nd, 2016 following the Fundão dam disruption in November 5th, 2015, is compatible with the international guidelines of corporate responsibility regarding the adopted remedies. In order to pursue such an analysis this article: presents the evolution of corporate responsibility in the international scenario and the increasing detachment of corporate speech and practice from social and environmental concerns; identifies the main aspects of the TTAC with the purpose of remedying the social and environmental damages caused by the Fundão tragedy; and analyzes, from the perspective of Karl Polanyi’s theory, the compatibility of the TTAC with international guidelines and particularly, the commitments of the companies who were considered responsible for the dam’s disruption. The role of the affected civil society is also important, both within the proposed Karl Polanyi’s theory and in regard to practical repercussions in global initiatives, especially with the delistment of Vale S.A. from the UN Global Compact