Corporate social impact investment in Brazil reached R$6.2 billion in 2024, the highest amount recorded in the historical series of the Benchmarking of Corporate Social Investment, or BISC, by Comunitas. The figure provides a snapshot of corporate social investment in Brazil within a broader Latin American context.
In Latin America, the impact investing market has also gone through a process of maturation. The report The Impact Investing Landscape in Latin America, prepared by ANDE, LAVCA, and LGT Impact Ventures, shows a diversification of the players involved in this ecosystem. In addition to philanthropic organizations and development banks, it now includes foundations, institutional investors, venture capital funds, private equity firms, and family offices.
This closer relationship between private capital and social initiatives, however, is relatively recent. The relationship between companies and civil society organizations has taken different forms over the past several decades, influenced by the political, economic, and social changes experienced by each country in the region.
During the 1980s, Latin American countries were still facing different processes of democratization and economic instability. In this context, many social organizations focused their work on areas such as human rights, social assistance, and advocacy for vulnerable groups, while companies maintained a predominantly philanthropic relationship with these initiatives through donations and individual actions.
Democratization and the economic changes of the following decades created space for new forms of collaboration between the two sectors. In Brazil, the Federal Constitution of 1988 expanded the foundations for the independent work of civil society organizations and contributed to the development of the third sector. Other countries in the region also went through their own processes of institutional strengthening and closer collaboration between companies and social organizations.
Beginning in the 1990s, concepts such as Corporate Social Responsibility, or CSR, and private social investment gained more space in corporate strategies. Later, the Sustainable Development Goals, or SDGs, and the ESG agenda broadened this discussion, bringing social, environmental, and governance issues closer to corporate decision making.
Alongside these changes, initiatives such as corporate volunteering programs, institutional support for social organizations, and projects focused on generating impact emerged and became stronger. Social organizations were increasingly seen as strategic partners rather than simply recipients of financial resources.
The relationship, however, is still far from free of problems.
Where Do Partnerships Between NGOs and Companies Still Fall Short?
The evolution of this relationship has not eliminated its challenges. Many partnerships still fail before they even begin, not because of a lack of resources, but because they are planned without listening to the people who understand the local context and the needs of the community.
Indicators: How Should Impact Be Measured?
Many initiatives evaluate only the number of people reached. Although this is an important indicator, on its own it does not show whether social transformation has taken place.
Indicators should vary according to the objectives of the partnership. These may include participant retention in the program, income generation, employability, improved academic performance, restoration of degraded areas, stronger institutional capacity within the organization, or the level of satisfaction among the communities being served.
More than simply counting activities, indicators should be able to show the transformation generated by the partnership.
Funding, Institutional Support, and Sustainability
Some initiatives view their relationship with social organizations only as a form of financial support. Donations without planning can generate limited impact and compromise the financial sustainability of organizations, especially when a project becomes entirely dependent on that funding.
A consistent partnership involves shared responsibilities and clearly defined objectives between both parties. In addition to funding, institutional support can include knowledge, services, infrastructure, professional networks, and other forms of collaboration that contribute to strengthening the organization.
Communication and Cause Related Marketing
There are also situations in which social organizations are approached only to legitimize advertising campaigns, without being involved in developing the strategy or receiving investment that reflects the visibility they help generate.
This type of relationship can also create room for greenwashing, when companies try to project an image of social and environmental responsibility without their actions producing concrete change. In addition to damaging the brand’s reputation, this practice creates distrust among both social organizations and the wider public.
Cause related marketing follows a different logic. When it is developed transparently and aligned with the needs of the partner organization, it seeks to create tangible benefits for the supported cause while also strengthening the company’s institutional positioning.
Understand the Local Context Before Setting Goals
Setting goals without considering the reality of the organization or the local context can be challenging for any company, and the challenge is even greater for those entering a new market without understanding its specific characteristics.
Many companies arrive with ready made projects and solutions, without listening to the community, understanding its priorities, or recognizing the experience that local social organizations have built over time. The result is pressure to meet targets that may be difficult or impossible to achieve in the short term.
For international companies, understanding these differences requires knowledge of the local context and of the organizations already working in these communities. This is where Sherlock Communications works through its Social Impact & ESG practice, supporting companies in identifying opportunities, building relationships with social organizations, and developing initiatives aligned with local realities.
One example is Betfair’s Esporte Futuro campaign, which brought three Olympic athletes to eight social projects in São Paulo, Rio de Janeiro, and Fortaleza. Some of the participating organizations are part of Lupa do Bem, Sherlock Communications’ corporate social responsibility project.
When companies and social organizations work together from the beginning, it becomes possible to combine the knowledge NGOs have of the local area, the culture, and community challenges with the expertise institutions bring in areas such as management, communications, marketing, fundraising, and scalability. Without this dialogue, the partnership is more likely to remain distant and less effective.
Talk to Sherlock Communications
Building partnerships between NGOs and companies requires knowledge of the local communities, the broader context, and the organizations that are already working there.
Sherlock Communications helps international companies develop corporate social impact strategies across Latin America. Through market research and public relations, we support brands in understanding local expectations, identifying community partners, building responsible narratives, and communicating their impact clearly without overstating the results.