In the Aracruz Celulose, SA (hereafter referred to as Aracruz) annual report, Carlos
Augusto Lira Aguiar, President and CEO, wrote:
In 2005, we received more distinctions than ever before in our history. Paradoxically, we were
also faced with one of the most serious conflicts the Company has ever experienced with
neighboring communities and social movement.
How can Aracruz Celulose SA be a poster child for sustainability best practices and
one of Brazil’s best companies to work for and, at the same time, be cast as the villain in
a land dispute with indigenous people? To answer this question, we look at literature
on sustainability, stakeholder theory, and land tenure difficulties in Latin America as it
applies to Aracruz. The various stakeholder perspectives are presented to illustrate the
complex nature of the challenge currently facing the company. The paper concludes
with implications for research and practice.