This document provides information about Brazil and social enterprises in the country. It discusses Brazil's form of government, political structure, socioeconomic challenges, and culture. Two case studies are presented: Fight for Peace, a social enterprise that uses boxing to help disadvantaged youth, and SITAWI, a nonprofit fund that provides loans to other social enterprises. Both organizations aim to address social issues in Brazil like crime, poverty, and unemployment through entrepreneurial approaches. The document concludes that while Brazil has experienced significant economic growth, there remains a need to translate this into greater benefits for the population given high inequality levels.

1. Understanding Global Cultures
Aakash Lonkar- A009
Sunny Pawar – A010
PTMBA(SE) - Second Year
School of Business Management
NMIMS
(2013-14)

2. Content
Sr. No. Topics
1 Introduction
2 Form of government
3 Political structure
4 Socio Economic Challenges
5 Cultural Life
6 Hofstede’s Dimension
7 Business Etiquettes
8 Case I- Fight for Peace
9 Case II- SITAWI
10 Conclusion
11 Bibliography

3. Introduction
• Brazil : Federative Republic of
Brazil
• Capital: Brasilia
• Country named after “Brazilwood” a
red wood tree commonly found
along coast of Brazil.
• Largest country in South America.
5th largest country in the world.
• Population: 199.321 million
• 5th most populous country in the
world
• 4th largest democracy
• Language: Portuguese
• Religion: Roman Catholic (73.6%)
Pentecostal (15.4%), Others (11%)

4. Form of government
• Brazil has Federal Republic Presidential type of
government.
• The head of their country is called president which is
elected by the people.
• Since its independence in 1822 the form of government in
Brazil has technically been a Democracy.
• This type of ruler-ship means that those in power are elected
by the residents of the country, who will vote in formal
elections for one from a number of different political
parties.
• At present, voting is compulsory for all Brazilian residents
that are literate and between the ages of 18 and 69 years.
Anyone that is 16, 17 or over 69 years of age, or is illiterate
can choose to vote, but is not under obligation to do so.

5. Political structure
The government of Brazil is divided into:
•Executive Branch
•Legislative Branch
•Judicial Branch
There are 27 states and more than 5,500 individual municipalities, each of which is
run by a mayor.

6. Socio Economic Challenges
×Socioeconomic inequalities & Poverty
×Lack of Education
×Crime
×The Infant Mortality Rate (IMR)

7. Culture
• Core culture of Brazil is derived from the Portuguese Culture because of
colonization. Portuguese language, Roman Catholic and colonial architectural styles
are the main derivatives of Portuguese culture.
• Some aspects like religion, cuisine, music, dance of Brazilian culture were influenced
by the contributions of Africans, Italians, Germans, Japanese, Jewish
and Arab immigrants who arrived in large numbers in the South and Southeast of
Brazil.
• Religion: Roman Catholic is the main religion in Brazil (almost 75%). Brazil has
the largest number of Catholics in the world. Brazilians enjoy complete freedom to
practice their own religious beliefs.
• Ethnic groups: 55% whites, 38% mestizo, 7% blacks, amerindians and Asians
• Language: Only country in America speaking Portuguese.
• Important part of Brazilian national identity and giving it a national culture distinct
from those of its Spanish-speaking neighbors.
• Virtually the only language used in newspapers, radio, television, and for business
and administrative purposes
• LIBRAS – sign language also used in education and government services
• Learning secondary language (English/Spanish) compulsory till 12th grade.
• 180 Amerindian languages, spoken in remote areas

8. Culture
• Family values:
• Big, extended families
• Women play a equal role in family. Patriarchal society – Men – provider, Women
– support family
• Folkways:
• Address to colleagues and supervisors is informal—the use of first names is very
common
• Eye contact is important in communication – sincerity and interest
• A touch on the arm or a pat on the back is common in normal conversation
• Clothing – conservative
• Punctuality is expected but people are often late, delayed and casual.
• Mores:
• Issues like corruption, poverty, crime are sensitive
• Brazilians are hot blooded; they display their emotions openly and don’t hold
back their feelings
• It’s common to see young couples kissing, hugging, and exhibiting passionate
behavior in public places
• The "OK" sign used in North America (thumb and index finger joined in an "o")
closely resembles an offensive Brazilian hand gesture. In Brazil the "thumbs-up"
sign is used to indicate approval.

9. Hofstede’s Dimension
69
38
49
76
44
59
80
70
60
50
40
30
20
10
0
Power Distance Individualism Masculinity Uncertainty
Avoidance
Pragmatism Indulgence
BRAZIL
Power Distance
Individualism
Masculinity
Uncertainty Avoidance
Pragmatism
Indulgence

10. Business Etiquettes
Informality shapes communication.
Before working together Brazilians need to know who they are doing business with
Face-to-face meetings are preferred to written communication, although when it comes to
business agreements-Brazilians value detailed legal contracts
Normally the highest-ranking person is the one who makes the decisions-Power Distance
When a person is criticized, he/ she loses face with the others in the meeting. The one who
makes the criticism also loses face, as an unwritten rule has been disobeyed.
Brazilians negotiate with People, rather than companies
During introductions at a meeting, business cards are exchanged with everyone.

12. Social Enterprise Landscape in Brazil
Interest in social entrepreneurship is growing widely
in Brazil. Several developed countries have stepped
forward to develop policies to support this area not
only as a tool to fulfill the government failures such
as poverty, health, education, unemployment among
others, but also because of all the benefits that social
enterprises have in relation to society. Social
enterprise is becoming a part of the norm in Brazil, a
valid option for starting or growing a business.

13. Fight for Peace

14. Fight for Peace
Fight for Peace works with youths most
adversely affected by or involved in crime,
gangs or violence; ex-offenders; not in
education, training or employment (NEET) or
those who have been excluded from school. It
uses boxing & martial arts combined with
education and personal development to realize
the potential of young people in communities
that suffer from crime and violence.

15. Five Pillars:
• Boxing & Martial Arts: Fight for Peace believes that boxing & martial
arts offer a broad appeal and important values to young people: discipline,
respect, self-control, identity, a feeling of belonging and pride, amongst
others.
 Education: The Education pillar offers support and new opportunities for
learning to young people who find themselves out of education or with
learning difficulties.
 Employability: All members of Fight for Peace have the opportunity to
be trained and prepared for the job market.
 Youth Support Services: Fight for Peace’s Social Support team
individually accompanies all the young people who are members at the
Rio and London academies.
 Youth Leadership: Fight for Peace creates new leaders inside and
outside of the organization, by giving its members responsibilities and
influence.

16. Values of FFP
The organization believes in the values of
 Acceptance
Champion
Solidarity
 Inspiring &
 Being Fearless.
The objective of all the projects is to allow these young
people to reach the greatest potential of their personal
development.

17. Fight for Peace- Organization support model
 FFP has been working since 2000.
 Founder Luke Dowdney has been helping young people in the Maré favela to realize their
full potential for more than a decade.
 His academy has grown from helping 10 disadvantaged young people in its first year, to
training and educating more than 2,500 every year.
 Although it started with boxing, over time it has expanded to help children in other ways.
Now it runs a range of classes, giving the young people an education and a sense of
purpose.
 The brand became so strong in the favela that people started stealing FFP T-shirts from
washing lines.
 Recognizing the power of the brand, and looking for ways to continue funding the work of
FFP, Dowdney and his team set up a sports clothing social enterprise called Luta.
 As Luta's "We give half" slogan suggests, 50% of all profits go directly back to helping
Fight for Peace and the communities it works with.

18. Social Impact
The University of East London published an external evaluation of our organization
which found that young people at Fight for Peace:
– Resist becoming involved in crime and desist from criminality and drug
trafficking
– Contribute to overcoming divisions and create positive relationships in local
communities
– Learn and practice conflict resolution and peace-making skills
– Attend education course and take examinations
– Improve their fitness and to lead a healthy lifestyle so that they can improve their
boxing and martial arts skills, and get fitter
– Train harder and to a high standard

19. 2012 IMPACT HIGHLIGHTS
FFP International secured a £1.2m
grant from the IKEA Foundation to
deliver the Global Alumni
Programme to 120 CBOs over the
next three years.
It is making a real difference
to young people both here in
Rio and at the academy in
London.
British Olympic Boxing
Gold Medalists Anthony
Joshua & Nicola Adams
visit the Rio Academy,
calling it “a humbling
experience to meet the
people involved with FFP”
(Anthony) and “an
inspiring project making a
huge difference to young
people and their
communities” (Nicola).
Of the Rio Academy’s Pathways
education project participants, since
joining Fight for Peace:
•99% want more from their lives;
•91% have a better relationship with
their family and
•87% find it easier to do things alone.

20. CASE II - SITAWI
• Condition of Social Sector in Brazil:
• Social sector in Brazil has undergone a growth spurt
• The current estimate is that Brazil is home to more than 400,000 non-profits,
excluding religious ones
• 74 % of nonprofits, including hospitals and universities, have no paid
employees and only 6 percent have more than 10 staff.
• Even though social sector is booming there is a concern about sustainability
and effectiveness

21. • SITAWI (Flourish or develop in Swahili) –
Social sector fund
• Goal: supporting projects with a focus on
social impact
• Social lending
• Positioning: Between a Foundation and a
bank
 Strategic support—much more than a bank
but less than many foundations’ capacity-building
programs
 Integrate this support through the provision
of below-market loans
• Market-rate loans in Brazil have interest
rates of 35 to 50 percent
• Not affordable to target clients due to lack
of collateral
•Founder - CEO
•Leonardo
Letelier
•Ashoka’s full
economic initiative
director in Brazil
•Senior
engagement
manager at
McKinsey &
Company.
Founded in 2005

22. CASE II - SITAWI
• Provided strategic consulting services to
companies, foundations, and larger nonprofits,
offering advice on “social impact with a business
mindset” to make payroll.
• Focus was to provide midsized loans ($50,000 to
$250,000) to organizations for which social impact
is a core mission and business is the supportive
engine
• Social enterprises are nonprofits and are less
comfortable working with a for-profit fund or bank
• SITAWI structured its fund as non profit, also
helped in foundation and donor support

23. CASE II - SITAWI
• First Loan: Daspu, a clothing brand owned by Davida,
a prostitute rights association that needed to finance
its winter 2009 collection
• Solidarium, a social enterprise that provides business
support and market access to small artisan
associations, which had a large order from Wal-Mart
Stores
• Simple working capital loans given from the pocket at
rates of 1 percent a month and were repaid within
three months.
• In 2009, as the financial crisis hit Brazil, several
commitments to fund SITAWI were withdrawn
• Avina Foundation granted $250,000, enabling
SITAWI to formally start the fund

24. Social Impact
• Provided loans to nonprofits with business units and
for-profits with a clear social mission that promote
civil rights and provide health care, social services,
and income opportunities benefiting more than 10,000
people
• Other enterprise funded by SITAWI
Microcredit institution ICC/Banco do Povo
($250,000): to allow it to expand its reach to more
people developing small businesses
community bank Banco Palmas ($140,000): to enable
it to fund new loans to its best customers
 São Paulo poverty alleviation and social service
agency Caspiedade ($330,000 in two separate loans):
to make up for delays in payments from government
contracts

25. SITAWI – Current focus
• Estimated 20,000 social enterprises and nonprofits
for which sales of products or services generate
more than 20 percent of income
• Market-building efforts will create a demand to
launch a for-profit fund with the same strong
social mission focus
• New financial products tailored to the social
sector, such as loan guarantees, performance
contracts, and hybrid products.

26. Challenges
NGOs linked to politicians involved in corruption
Tax and legal structure in social sector is weak
Tax benefits for donations to art and sports but not
for NGOs supporting social organizations

27. Conclusion
• The economic growth miracle of Brazil has not translated into equitable income
distribution or poverty eradication. The countless problems of poverty and gross income
inequality exist largely because of very high concentration of wealth and rampant official
corruption
• Brazil is a land of contrasts. The richest 10% of people in Brazil have access to over 40%
of the country’s income. On the other hand, the poorest 10% receive about 1% of the
income. This paints a grim picture for those with little or no financial stability.
• Its cities combine modern skyscrapers, suburban houses, and impoverished slums-favelas.
Home to as many as 25 million people.
• A life of crime is often the only alternative for unemployed youth with no economic
opportunities.
• Brazil with the rest of the BRIC nations have a long way to go before their current
economic development translates into benefits for the majority of the population.

28. Bibliography
• Brazil.org.za. 2014. Brazil Politics - Intro. [online] Available at:
http://www.brazil.org.za/politics-intro.html#.UyGLedIW1H8 [Accessed: 14 Mar 2014].
• Brownsdon, R. 2013. Brazil's social entrepreneurs are making the most of safer favela
conditions. [online] Available at: http://www.theguardian.com/social-enterprise-network/
2013/jul/12/opportunities-social-entrepreneurs-rise-brazil [Accessed: 14 Mar 2014].
• CHALLENGE EVENTS AT FIGHT FOR PEACE LONDON. 2014. Fight for Peace, [blog] 18
February 2014, Available at: http://www.fightforpeace.net/challenge-events-at-fight-for-peace-london
[Accessed: 14 Mar 2014].
• Fightforpeace.net. 2014. Pathways | Fight For Peace. [online] Available at:
http://www.fightforpeace.net/projetos/novos-caminhos [Accessed: 14 Mar 2014].
• Frommer, A. 2014. Etiquette in Brazil | Frommer's. [online] Available at:
http://www.frommers.com/destinations/brazil/707706#ixzz2vmOvsmqa [Accessed: 14 Mar
2014].
• Kofas, J. 2014. BRAZIL: ECONOMIC GROWTH AND SOCIOECONOMIC INEQUALITY. WORLD
EVENTS, CULTURE & CIVILIZATION, [blog] 11 May 2011, Available at:
http://jonkofas.blogspot.in/2011/05/brazil-economic-growth-and.html [Accessed: 14 Mar
2014].
• Library of Congress. 2014. Brazil Structure of Government - Flags, Maps, Economy, History,
Climate, Natural Resources, Current Issues, International Agreements, Population, Social
Statistics, Political System. [online] Available at:
http://www.photius.com/countries/brazil/government/brazil_government_structure_of_gover
nm~236.html [Accessed: 14 Mar 2014].
• http://www.ssireview.org/articles/entry/journey_into_brazils_social_sector

29. Thank You