Social Efficiency of For-profit Organizations in Brazil: An Empirical Analysis

This study proposes and validates a social efficiency indicator for profit-seeking organizations and applies it to assess the social efficiency of companies in Brazil. The study is quantitative and contains two samples: one of 87 large companies and one of 33 small and medium enterprises. The data received quantitative treatment using parametric techniques. Efficiency was analyzed using DEA Online Software. The proposed degree of social efficiency indicator is positively and significantly related to the social efficiency calculated using the DEA method. The conclusions also show that companies tend to resort to automation (or the incorporation of technology) to become more productive, resulting in higher productivity, more profit, more taxes and fewer jobs. The reduction in the number of jobs could rapidly lead our society to a situation in which “certain neighborhoods could become isolated, with unnecessary and unqualified people in potential conflict and leading a marginal existence”. This state of poverty would inevitably lead to environmental degradation.