Stakeholders ’ engagement in sustainability development and reporting : Evidence from Brazil

This study examined the parameters of sustainability development (SD), sustainability reporting (SR) and the degree of stakeholders” engagement (SE) in the process of social control (SC) of the municipalities of ABCD of the greater São Paulo, Brazil. Historically, social responsibility reporting was initiated by multinational companies (MNC) to abridge the information gap between the organizations and its stakeholders. Thus, with increased attention towards sustainable business, reporting social and environmental dimension of operations – alongside their economic impacts – has become rather common. In this same line of thought, in Brazil where transparency of public administration borrows a leaf from the fiscal responsibility Act (FRA) creates a rule of thumb that can be regularly monitored and supervised by stakeholders by imitating sustainable reporting. In this intent, transparency in public management has gone beyond disclosure of the instruments of fiscal transparency, and extends to the implementation of the concept of accountability, by enabling citizens to monitor and effectively participate in the acts of governance that cut across the society. As we are aware that stakeholder is a centrepiece of the reporting process worldwide, the SE has become very relevant. The municipalities of Santo Andre, São Bernardo do Campo, São Caetano do Sul, and Diadema –ABCD region selected for examination are very relevant to the Brazilian context in that they count as models for SD that is emulated by other municipalities of the country. As a result of the aforementioned, our research inquires into: what characterizes how, why, by whom and to which direction sustainability reporting is nurtured in Brazilian municipalities of ABCD? In order to provide for this question, we adopted a descriptive analysis of multi-case studies for the models of participation of the stakeholders in the sustainable enforcement. We performed content analysis on documents which focused on online interim reports for the periods of 2008, 2009 and 2010 retrieved from the archive of ABCD municipalities considering the criteria proposed by Global Reporting Initiative (GRI). Overall, our analysis of the data makes us to infer that in order to understand the SR in the Brazilian public agencies one ought to know the cornerstone of accountability and transparency that relies on the fiscal responsibility act. Thus, we built up the concept of “SR”, by posing some propositions which could support researchers and practitioners to interpret the contextual background to understand reporting in an emerging economy such as Brazil. This in turn paves way for further studies such as comparing the SD and SR of the municipality in emerging countries with that of the developed economy.


INTRODUCTION
The current organizational initiatives focusing disclosure companies and stakeholders.Therefore, with increased attention directed towards SR, reporting social and environmental dimensions of operationsalongside their economic impacts -SR has become rather imperative.While research has documented SR and looked at reports' contents, studies on MNC reporting as institutionalised phenomenon, considering evolving patterns at the firm level, have been lacking (Kolk, 2010:367).This has expanded its horizon to include issues concerning environmental degradation that indisputably covers the world climate concerns.In this same line of thought, local organizations (private and public agencies) have taken the lead to implement the CG style that considers corporate social responsibility, ethical, transparent, equitable and accountability policies, not to mention other checks and balances.
Thus, recently the current trend of accountability and transparency in the reporting process has started to oblige organizations to voluntarily communicate information on environmental and other non-financial performance, social and economic to their stakeholders during disclosure.This process has configured a sustainability reporting, in accordance with the GRI, which means that the organization has reported on all indicators and has provided an explanation about indicators that have not reported against in the financial statements.This exercise is recognized as an important mechanism for improving corporate sustainability performance.That is, based on generating business value through measurement and management of environmental risks and opportunities, and reporting this information in a more fashionable manner, that responds to the growing expectation of customers, business partners, investors and the community at large.
In the Brazilian public agency, most particularly in the city management context, engagement of stakeholders in sustainability reporting cover issues relating to: the ability to comply with the rules of FRA; the capability of the municipalities to obtain revenues in a sustainable manner in all the segments of her community apart from the States and Federal allocations; the capabilities to implement a social economic and environmental policies; the capabilities to install through a social control measures the stakeholders working group in the reporting process; the capabilities of the stakeholder engagement challenges to handle a localized incident; and the capabilities to implement the ICT to enhance the SR standards.This is emphasized in Brazil (2000), according to Article 9, subsection 4 of the Fiscal Responsibility Act, before the end of May, September and February of each year the executive (Federal, State and Municipal) would have to demonstrate and evaluate the compliance with the fiscal targets of every quarter in a public audience, by so doing report the sustainable development.This consists in oral exposition in the plenary of the municipal government so that all and sundries would be in the know Imoniana et al. 10635 of the reporting exercise, thereby characterizing a sustainability reporting.The SE in the strategic planning, budgetary dispensation and control, and the sustainability reporting in the municipalities of the democratic societies are privileges of very few modern societies and some transition economies.However, this involvement is in a growing trend, as one would find in Brazil and South Africa from the emerging economies not to mention Italy in Europe.South African Constitution and its sector policies promote equitable involvement and benefit among women and men in decision-making and development.Policy requirements prescribe either equal or partial allocations, the latter functioning to foster incremental progress towards equity […] women are not confident when it comes to community development roles.They must be trained to be confident.Some of them do not even go to participate in meetings, but those that do, often appoint men to leading positions such as chairpersons of committees (Sithole et al., 2006).These same authors concluded that, economically, the municipalities as in, eThekwini, Hibiscus Coast, and Msinga, ( 2007) are perceived to have survival and sustainability challenge that ranges from big, to medium and small respectively.This perception of sustainability status correlates with the varied size of urbanisation and the size of revenue generated by the economic activities that these municipalities are able to attract and sustain.
Curiously in the Nigerian context, Idemudia (2010) finds that the Nigerian government has facilitated or inhibited corporate social responsibility (CSR) practices, and the ramifications for corporate social development.It demonstrates that the nature of the Nigerian state, the country's rentier economy, and the contested nature of CSR have prevented the Nigerian government from providing an enabling environment for CSR, which, together with oil companies' failures, undermine the possibility of corporate social development in the Niger Delta.

Research questions and objectives
In regard to the aforementioned, the current study inquires into what characterizes how, why, by whom and to which directions SR is nurtured in the municipalities of ABCD of Brazil?In so doing, this study compares and contrasts the guidelines of sustainability reporting and the degree of engagements of stakeholders in the process of social control of the ABCD region of greater São Paulo, Brazil with a view to pinpointing the reasons for their differences.
As ancillary objectives, we: a) Identify the sustainability reporting criteria, based on Article 48 of Brazilian Supplementary Law nº 101 of May, 4 2000; b) Identify the communal participation of stakeholders; c) Identify the levels of compliance of global reporting Initiative by the different management profiles in the municipal governance; and d) Determine the means of enhanced level of engagement.

Contribution of the study
This study throws more light into the parameters of sustainability development, reporting and the degree of stakeholders' engagement in the process of social control of the municipalities of the ABCD Region of São Paulo.Thus, it assisted in determining the degree of social culture, accessibility and responsiveness of using the reporting structure as a contribution to the accountability of government in pursuit of social democracy.
Furthermore, should one ask what has the knowledge of economic indicators as priorities had in the past impacted in sustainability reporting?Certainly, we would observe from this study that it has assisted in adequate planning and implementation of strategic controls in order to meet up with compliance.
In effect, since GRI and guidelines for SD and SR seems to present a best practise, this study mapped alongside the Brazilian FRA and SR to show the realities of the environment of ABCD region.
The analysis of the multiple cases (ABCD municipalities) looks as a jump start and would pave way for further analysis en bloc for other regions of the country.
Thus, as literature is very scanty when we talk about sustainability reporting, it is important to revisit the issue of number of organisations computing sustainability reports while that of public administration is a biting one.This is corroborated by Skouloudis and Evangelinos (2009) who sees a significant gap present within these reports demonstrate that there is substantial room to be explored.

LITERATURE REVIEW
In this area, we recapitulate the main topics in the literature that would eventually enhance the comprehension of the study which proceeds as thus: Firstly, stakeholder, responsibility and engagement; Secondly, sustainable development/reporting and; lastly sustainability reporting and corporate social responsibility.

Stakeholder's responsibility and engagement
According to Hummels (1998Hummels ( :1408) ) stakeholders are individuals and groups who have a legitimate claim on the organisation to participate in the decision making process simply because they are affected by the organisation's practices, policies and actions.
In sustainability reporting (GRI, 2005:7-8), public agencies have a civic responsibility to properly manage public goods, resources and/or facilities in a way that supports sustainable development.
The Brazilian Law no.4,438 of October 2006 institutes as a responsibility for every Municipal Government (Public Agency) to obligatorily develop a Director Strategic Plan for their municipalities, especially when its inhabitant is within the range of 20,000 or more.However, we have seen the experience of municipalities with less than 20,000 in population (Joanópolis in the State of São Paulo) developing a participative strategic plan with the assistance of Celso Daniel Chair of City Management in the year 2007 with the participation of this researcher.This shows that the management of the municipality is sensitized about the need of providing for transparency of their government in relation to their stakeholders.The stakeholder's engagement (SE) is very important in the context of sustainability reporting in Brazil.This is fully documented through the audience in which they participate in the plenary of the municipalities in support of participatory budgeting.Stakeholders engagement (SE) is a fundamental step of the reporting process because of its role in defining materiality and relevance of the information communicated (Manetti, 2011:110).

Sustainable development/reporting
According to Veltmeyer (2007) development' in this new intellectual context is expected to be more equitable and socially inclusive, human in scale and form, participatory and empowering, and sustainable in terms of both the environment and livelihoods.
The author adds that, at the level of agency, development should be initiated from within (civil society) and below (the grassroots) rather than from the outside (overseas development assistance) and above (the government or state).Skouloudis and Evangelinos (2009) add that sustainability reporting integrates information on the economic, environmental and social performance of an entity into a single publication.
Sustainability as per Finch (2005) leads to analysis of the five major frameworks covered in the literature: (1) agency view; (2) corporate social performance view; (3) resource-based view; (4) supply and demand view; and (5) the stakeholder view, which is the dominant view.
Thus considering the corporate social performance view, in the Brazilian context, Rocha and Abreu (2003) demonstrates a success story of sustainable development of SENAI (Serviço Nacional de Aprendizagem Industrial) the Brazil National Service for Industrial Apprenticeship, which contributed to the development projects in Brazil.
All these initiatives have to be reported in an appropriate format, in a proper media, and in a timely manner so that it would reach the stakeholders in order that it could be replicated in a bigger and larger scale.SR is meaningless if it is not grounded within concepts of accountability and democracy centred on the rights, needs and empowerment of all stakeholders upon whom the accounting organisation has an impact (O'dwyer et al., 2005).
Along the same thought, (GRI, 2005:8) emphasizes that, public agencies have the objectives to promote the public interest and are expected to lead example in reporting publicly and transparently on their activities.
The guideline follows the sustainable development process.Generally, in all literatures researched among which are GRI (2005GRI ( ), O'dwyer et al. (2005)), Guthrie and Farneti (2008) to mention just a few, all focuses on Social development (welfare of the public), Environment development (handling of the soil and the resources) and Economic development (optimization of the revenues derivable).
All indicators developed and brought forward in this process are meant to assist in the monitoring of sustainable development.In the municipalities selected for analysis they are guided by the indexes established in the budgets of the municipalities and in the course of participatory budget the stakeholders used indicators to monitor the commitments of the public agencies.
By and large, in order to avoid rancour rethinking organizational element of a particular social movement seems to be the right track to social development.Companies may use sustainability accounting and reporting to maintain the status quo (Tinker et al., 1991) and we conceive engagement research in sustainability accounting and reporting as the urgent response to the social and environmental crisis (Carol and Carlos, 2007)

Sustainability reporting and corporate social responsibility
While the discourse surrounding sustainability reporting is even more worrisome today, in the public administration, the shareholder's concern about the corporate social responsibility grows.Gallego (2006) expatiated that information arising thereof is used as economic, social, and environmental indicators for a measurement of sustainable development.Public agencies have a civic responsibility to properly manage public goods, resources and/or facilities in a way that supports sustainable development objectives and promotes the public interest (GRI, 2005:7-8).
Considering better sustainability reporting practices, Guthrie and Farneti (2008) analyzed voluntary sustainability reporting practices in public sector organisations in Australia, focusing on patterns of disclosure.
While Sobhani et al. (2009) believes that, these sociopolitical and organizational changes reported might influence the social responsibilities of the corporate bodies that might ultimately be reflected in the disclosure practices of the listed companies.The authors conclude from a global perspective, that the level and the extent of disclosure are found to be meagre.

METHODOLOGY
The current study is descriptive and it analyzed multiple cases of Imoniana et al. 10637 municipalities in ABCD region of São Paulo.In this approach, we performed critical theoretical review of the literature concerning sustainability reporting and later realized archival content analysis of data which focused on online interim reports for the periods of  , 2011).This is also in line with Adams and Frost (2006) who mentioned that it is a medium for sustainability reporting given the relatively recent advent of the web, and the purported advantages as a communication tool.
According to Godoy (1995) the strategy of case study is adopted to give answers to research questions of which there are no much possibilities of control on the phenomenon studied.
In consonance with this approach, Yin (1990) states that to use the case study approach, certain items must be elaborated so as to sustain the direction for the investigation process, they are: research questions, study presuppositions, unit of analysis, linking data to presuppositions and criteria for interpretation of data.
In addition to the aforementioned case study which should serve as a base of conclusion for other cases should impact socially or politically the environment in which it is installed, apart from economic significance in terms of market and competition.Of these mentioned variables the municipalities of ABCD do have a considerable role.
Furthermore, we borrowed a leaf from the GRI guidelines as presented by Guthrie and Farneti (2008) to guide our assembling of alignment of the four municipalities in regard to the public agency indicators of sustainability reporting (Table 1).The said study analyses voluntary sustainability reporting practices in seven Australian public sector organisations which use the Global Reporting Initiative (GRI) guidelines.Reporting practices are diverse and the use of the GRI public agency supplement fragmented, with the annual report being only one of several media used by organisations for sustainability disclosures (Guthrie and Farneti, 2008).
The following sketch ought to bring to the knowledge of the populace the highlights of certain indicators as they express some meanings to them in patterns of accessibility, broadness, and intelligibility of the communication tool.
Thus, to guide the data analysis, we take on to the suppositions that, the acute streamline of the Strategic or Director Plan towards harnessing of all the resources of the municipalities of ABCD region of São Paulo is influenced by the sustainable development experienced by these regions.
In the following area, we analyze the data gathered from interim reports of the four ABCD municipalities for the periods of 2008, 2009 and 2010.

DATA ANALYSIS
Upon classifying data derived from the online interim reports published by the four municipalities and associated documents, we analyzed the realities of the four environments based on the criteria proposed by Global Reporting Initiative (GRI, 2005:8) and guidelines for sustainability development and reporting proposed by Dumay et al. (2010) totally remodelled to suite the necessities of Brazilian environment.The summaries of our analysis for the municipalities of ABCD region have been grouped in separate sketches for public agency alignment with sustainability guidelines in Tables 2, 3, 4 and 5.
In effect, watching closely well with the aforementioned tables, we would observe that since the ABCD municipalities exceeds 20,000 inhabitants, they all have Director Strategic Plans to enhance sustainable development and reporting as indicated in

PA02
State the definitions of sustainable development used by the public agency, and identify any statements or principles adopted to guide sustainable development polices.
PA03 Identify the aspects for which the organization has established sustainable development policies.PA04 Identify the specific goals of the organization for the each aspects listed in PA3.PA05 Describe the process by which the aspects and goals in both PA3 and PA4 were set.PA06 For each goal, provide a description of the indicators.PA07 Describe the role of and engagement with stakeholders with respect to the items disclosed PA11 Describe procurement policy of the public agency as relates to sustainable development.PA12 Describe economic, environmental, and social criteria that apply to expenditures and financial commitments PA13 Describe linkages between the public agency's procurement practices and its public policy priorities.

PA14
Percentage of the total value of goods purchased that were registered with voluntary environmental or social labels and/or certification programmes, broken down by type.
PA1 of Tables 2, 3, 4 and 5 respectively, this makes them comply with the requirements of the Brazilian Fiscal Responsibility Act, the main driver of sustainable development in Brazil.
As per PA2, statement of the definition of sustainability reporting used by the public agency, and identification of statements or principles, their wordings look alike, in general, they emphasize that Management transparency is one of the commitment of the municipal public management, tool that enhances the access of the populace with updates of information about revenues and expenditures; payrolls, procurements and it also enable the stakeholders to exercise democracy.
The identification of the aspects for which the organization has established sustainable development policies PA3 tends skewed.When we compare Santo André, São Caetano, São Beranardo and Diadema; São Bernardo seems to be braver in terms of implementation of PA03 when it exceeds the provision for Article 48 of Brazilian Law 101 of 4th May 2000 by additionally emphasizing apart from policies about economics, social and environmental, covers infra-structure; urban transit and transport; habitation; preservation of assets, culture and use of the soil.São Caetano is in the same line with the development of physical and territorial development policies in addition to the mandatory ones.Santo André and Diadema have their skewness in a separate direction to maintain status quo.As per PA04, the main goals of the agencies do vary, Santo André -keeps track of variation in revenue management; São Bernardo -Technical sub-committees of the areas of director plan, charged to study and propose policies for sustainable development of SBC; São Caetanoefficient accountability by participatory budgeting; and Diadema -constantly feed the financial system for the State and Municipal Management (SIAFEM -Sistema Administração Financeira Estadual e Municipal) with data relating to monitoring of budgetary execution of the Agency.Overall, in PA05, the agencies' goals have been set considering restrictions which one can observe in the statements of Revenues and Expenditures but fundamentally anchoring it on Fiscal Responsibility Act (FRA).Regarding PA06 which guide towards reporting of indicators look very timid.None of the ABCD municipalities ventured to show sustainability indicators in the reporting process.However, in the periodic bulletins produced in some of the allied journal sponsored by the municipalities, some of the indicators were shown.Users are given a tedious job to locate these indicators with extra job.
Concerning PA07, all the municipalities emphasized participatory budgeting owing to a special section on the FRA to show that record of audience with stakeholders in the plenary were presented and budget and realizations have been debated and approved.
With respect to guidance PA11, all the municipalities showed that their procurement procedures reporting all over their corporate web site is duly clarified.This no doubt could enable any stakeholder to give complains or enumerate his or her discontentment about administrative procedures and seek redress if any, for the procurement process.
The ABCD region has been privileged in the past (between 50s and 80s) considering matters of revenue when it was seen as the base of Brazilian development.That is, with the concentration of the Automobile industries (GM, VW, Mercedes, Scania, Rolls Royce Motors, to mention just a few) which always worked with the spare parts industries by generating income.This no doubt described the economic, environmental, and social criteria that apply to expenditures and financial commitments of the allied municipalities.Suffice it to say that of the four municipalities of ABCD region Diadema is the less favoured economically, however, through time it has strived to develop its social and environmental aspects which tries to bring it to near equilibrium in relation to the others.
In respect of PA13, even though São Bernardo do Campo is seen as the richest neighbour, its priorities do not look so different from others in as much as it customized expenditures in terms of Revenue.Something is unanimous, each of the municipality has healthcare as utmost priority and the budgets reflect on this.São Bernardo has earmarked for Health Expenses R$ 352,907,482.55worth 22.46% its revenue for the period ending December, 2010.We have a total sewage disposal and portable water for our pregnant women, for newly born and we have improved this system all the while.Adding to this number of projects was development that makes us obtain these indicators, affirmation of the coordinator of social actions (Municipality of São Caetano do Sul, 2011).
In Santo André efficiency is derived from the comparison with FRA indicators of revenue, expenditures and financial commitments.It also relates to how far they have gone with reference to administering debt burdens with suppliers.São Bernardo's efficiency is essentially derived from the comparison with FRA indicators of revenue, expenditures and financial commitments.São

PA05
Describe the process by which the aspects and goals in both PA3 and PA4 were set.
Goals were set as regards the use of the soil, environmental education for the use of materials; cost reduction and economic sustainability.

PA06
For each goal, provide a description of the indicators.
As an explanation of economic sustainability when analyzing energy use (175,000 Kwh) and generation of jobs in Santo André, we found that the year 2010 marked the resumption of productive activity after the recession of 2009.
Still, the levels of electricity use in industry are presented below that of 2008 PA07 Describe the role of and engagement with stakeholders with respect to the items disclosed By emphasizing participatory budgeting, a special section shows the record of audience with stakeholders in the plenary where budget and realizations have been debates and approved.

PA11
Describe procurement policy of the public agency as relates to sustainable development.
The procurement policies oblige the Agency to make all procurements available to the public, where it is not needed or is exempted information is made available in the corporate web page.

PA12
Describe economic, environmental, and social criteria that apply to expenditures and financial commitments Expenditures and financial commitments have been planned in line with the limits of FRA.However, Career Development Plan was approved recently and the will likely increase payroll by 5% after 2010.Among other commitments is the Court of Justice has released a lump sum of R$ 4.4 million to pay Precatory for 82 beneficiaries for the period preceding 2010.

PA13
Describe linkages between the public agency's procurement practices and its public policy priorities.
The highest priority of the Agency spending lies within the social development (R$ 1, 6 billion) which is practically the same thing as Social development.

PA14 Administrative Efficiency
The efficiency is derived from the comparison with FRA indicators of revenue, expenditures and financial commitments apart from administering debt burdens with suppliers.In 2010 fiscal year the Agency deposited into the accounts of Federal Justice the equivalent of 2% of its revenue to cover precatory owed to 82 beneficiaries of more than 20 years that has grown to approximately R$ 35,227,782.41.

PA04
Identify the specific goals of the organization for each aspects listed in PA3.
Technical sub-committees of the areas of director plan are charged to study and propose policies for sustainable development of SBC.Specifically, through the ordinary Laws of the Municipality (no. 6045/2010;6024/2010;6021/2010;5991/2009, etc) ratifies the various city council for every subarea of the Director Plan to ensure adequate execution to meet up their acceptable indicators.

PA05
Describe the process by which the aspects and goals in both PA3 and PA4 were set.
The goal above were set considering restrictions which one can observe in the statements of Revenues, Expenditures, as it relates to compliance with Fiscal Responsibility Act (FRA).

PA06
For each goal, provide a description of the indicators published and show how.

PA07
Describe the role of and engagement with stakeholders with respect to the items disclosed A special section shows the record of audience with stakeholders in the plenary where budget and realizations have been debates and approved.

PA11
Describe procurement policy of the public agency as relates to sustainable development.
SBC procurement policy aims to supply material to meet up projects.Contract goods & services, receive stock, authorize inclusion and disposal, issue certificates to contractors, and develop skills for jobs done in-house.

PA12
Describe economic, social and environmental criteria that apply to revenue, expenditures and financial commitments.

PA13
Describe link between the public agency's procurement practices and its public policy priorities.
A priority of current government of SBC is Health.Intends to complete the Clinical Hospital, increase number of beds in ITU-Intensive Therapy Unit.The relationships health figures for the period ending December 2010 was: Total Revenue R$1,571,985,085.77and Health Expenses R$ 352,907,482.55worth 22,46%.

PA14 Administrative efficiency
The efficiency is derived from the comparison with FRA indicators of revenue, expenditures and financial commitments.
Caetano do Sul has its efficiency derived from comparing FRA indicators of revenue, expenditures and financial commitments.It also compares its results with the Brazilian public administrations burden of employee payrolls.Diadema seems to have a tight administrative efficiency derived from the comparison with FRA indicators of expenditures and financial commitments considering the meagre revenue as compared to the rest.

DISCUSSION AND CONCLUDING REMARKS
This study examined the parameters of sustainability development, reporting and the degree of stakeholders' engagement in the process of social control of the municipalities of ABCD of the greater São Paulo, Brazil.
In general, the ABCD municipalities have shown that they act on need-to-know reporting, thereby focusing on sustainability reporting by essentially including mandatory reporting (economic, social and environmental) for public sector in compliance with Supplementary Law 131 of 27th May, 2009 of Article 48 of Brazilian (Law 101 of 4th May 2000) of Fiscal Responsibility Act.Therefore, the elements of voluntary reporting that tends to consolidate the GRI have not been really felt.Notwithstanding, the municipality of São Caetano do Sul has taken the bull by the horns by reporting in addition to mandatory items by addressing information such as: physical and territorial sustainable development.This is interesting as we borrow a leaf from Dumay et al. (2010) that cited […] public and third sector organizations have yet take up sustainability reporting with the same fervour as the private sector.
In a broader perspective, a concern about transparency of public accounts in the municipalities of Great ABCD has won more prominence with the publication of Complementary Law No. 101/2000.Thus, considering the stage in which ABCD is today and comparing it with the GRI, transparency of these municipalities could be termed to be incipient as they follow just the FRA format.Some design their reports according to different stakeholders; others disclose according to sections of their business, or environmental and social issues.Some companies just follow externally developed guidelines, such as the Global Reporting Initiative (GRI) guidelines (Zhang et al., 2007:97).
Overall, transparency should characterize all activities performed by public managers, so that citizens have access and understanding of what government officials have realized from time to time.That is, in the context of fiscal transparency, it means the possibility of clearly monitoring, transparent budget execution and public finances.
The transparency of fiscal management in Brazil, from the FRA has become a legal requirement that can be regularly monitored and supervised by stakeholders.However, a transparent public management goes beyond the disclosure of the instruments of fiscal transparency, but extends to the implementation of the concept of accountability, by enabling citizens to monitor and Imoniana et al. 10641 effectively participate in the acts of government that impact across society at large.The government portals are the new channels to provide services, information and communication between citizens and their government.Charts reflect the many government portals, without entering the citizen as subject of the informational process that involves the City and Society.These portals do not reflect coherently, the citizen's perspective, but that of agency.According to Cruz et al. (2010), the implementation of public services and posting resources through electronic portals require comprehension of the citizen, sensitivity and planning by the management.Thus it is necessary to determine the degree of social culture, accessibility and responsiveness of using this service, as it is undeniably a contribution to the accountability of government and encouraging in pursuit of social democracy.
Furthermore, should one ask what has the knowledge of economic indicators as priorities had in the past impacted in sustainability reporting?Certainly, we would observe from this study that it has assisted in adequate planning and implementation of strategic controls.
In fact, a reduction in investment shown in economic development plans has begun to signal some signs of concern as the ABCD region witness migration of industries to other municipalities of the country.The collegiate of the Mayors of the municipalities of ABCD seems to be expediting on this issue that looks crucial for their sustainability by giving the most priority attention on value creation to maintain their municipality.It is commonly recognized that nowadays social and environmental aspects, and more in general stakeholder-linked issues, are becoming important corporate value drivers (Zambon and Del Bello, 2005:130).
Considering the relatively small revenue of Diadema as compared with other municipalities of ABCD, generating extreme socioeconomic deprivation, even though tries to meet up with basic social demands one would not be mistaking if one tries to associate its state of sustainable development with the crime rate while comparing it with brother municipalities.In order to comprehend sustainable development and reporting in the municipalities of the Greater São Paulo regions and probably have some prognostics about other municipalities of Brazil, it is worthwhile to take a good look at the macro determinants that affect the administration of such agencies that entirely rest on the Fiscal Responsibility Act.By comparing the main indicators of sustainability reporting that is mandatory by the Fiscal Responsibility Act the municipalities seem to be more concerned about the social problems, probably as a result of federal allocations to offset their administrative bills than concentrating reporting per se to the fullest extent that would reach the prescriptions of Global Reporting Initiatives.
In this regard, we conclude that the fiscal responsibility act is the cornerstone of sustainability reporting, in other words, accountability and transparency in the Brazilian public agencies should come first.

PA04
Identify the specific goals of the organization for the each aspects listed in PA3.
Efficient Accountability by participatory budgeting, water/sewage for all, transport counts with implementation of metro, transparency installed internal audit, health coordination installed physical education and prevention of sexually transmitted diseases through quick diagnosis, etc PA05 Describe the process by which the aspects and goals in both PA3 and PA4 were set.
Through participatory budgeting and the likely involvement of every level of government of the municipality, one sees the absolute transparency in the definition of viable goals in line with revenues.

PA06
For each goal, provide a description of the indicators.
No specific indicator has been specifically shown on the corporate Web page.However, through the analysis of the financial statements all indicators: employees, infrastructure-investments, educations, health, etc are line with FRA.Of the most priorities of the municipalities of ABCD region São Caetano is the best.For instance it has the least death tool of newly Born of Brazil.Being 9 deaths to 1,000 babies as reported by the Secretary of Heath of the State of São Paulo.

PA07
Describe the role of and engagement with stakeholders with respect to the items disclosed All the stakeholders participate fully through participatory budgeting.This establishes periodic audiences in the Council plenary for the hearing on items of the municipal budget.

PA11
Describe procurement policy of the public agency as relates to sustainable development.
Special reporting link have been given to procurements and for *everyone to access their interests.

PA12
Describe economic, environmental, and social criteria that apply to expenditures and financial commitments Considering a good number of industries and spare parts producers in the Municipality São Caetano have no course for alarm albeit the tax disputes among municipalities far from the ABCD region who tries to woo the entry of such industries with the promise of tax holidays.São Caetano has the highest HDI (human development indicator -0.919) in Brazil compared to the EU for instance Forli-Cesena Province, Italy is 0.849.It is the forth city if Brazil in matters of savings.

PA13
Describe links between the public agency's procurement practices and its public policy priorities.
Priorities in São Caetano that is Health.The agency's procurements practices matches with it public policies in this regard.The municipality presents the least prenatal death in the state of São Paulo.

PA14 Administrative efficiency
The efficiency is derived from the comparison with FRA indicators of revenue, expenditures and financial commitments apart from comparing the Brazilian public administrations burdenemployee payrolls.

PA04
Identify the specific goals of the organization for the each aspects listed in PA3.
Constantly feed the (SIAFEM -Sistema Administração Financeira Estadual e Municipal) system with data relating to monitoring of budgetary execution of the Agency.

PA05
Describe the process by which the aspects and goals in both PA3 and PA4 were set.
The goal above were set considering restrictions which one can observe in the statements of Revenues, expenditures, besides figures showing the needs for compliance with Fiscal Responsibility Act (FRA)

PA06
For each goal, provide a description of the indicators.
N/A. Specific indicators are not shown however, systems printouts shows financial statements and budgetary realization.

PA07
Describe the role of and engagement with stakeholders with respect to the items disclosed In Diadema the population accompanies the audiences held in public plenary of the municipality where the statements are shown and discussed.

PA11
Describe procurement policy of the public agency as relates to sustainable development.
The procurement procedures and stakeho0lders involved are shown in the Web page of the agency PA12 Describe economic, environmental, and social criteria that apply to expenditures and financial commitments Of the four municipalities of ABCD region Diadema is the less favoured economically, however, through time it has strived to develop it social and environmental aspects which tries to brings it to near equilibrium in relation to the others.The relationships of financial commitments for the period ending December 2010 is: Total actual expenditures was R$ 619, 889,767.87.Actual revenue for the periods was R$ 679,671,146.54PA13 Describe public agency's procurement practices and its public policy priorities.
Priorities of Diadema have been summed up in three principal items (Infrastructure, Daycares, Education and health).For these items a budget of R$667,307,953.00 has been earmarked.

PA14 Administrative efficiency
Diadema seems to have a tight administrative efficiency is derived from the comparison with FRA indicators of revenue, expenditures and financial commitments.
This notwithstanding, the municipalities have tried to streamline their Strategic Director Plan towards harnessing all the resources of their municipalities.However, the growing population constrains have overweighed the budgetary allocations from the federal government (and other current revenues) that fall short of resources to effectively tackle social aspects of sustainable development.Thus, this rapid population growth with no commensurable massive migration control polices for the industries to other municipalities of Brazil, makes us note that a creation of a sustainable value requires that the installing companies of the ABCD regions consider the essence of sustainable development that reigns within GRI and other best practices.
Thus, one is able to build up the concept of "sustainability reporting" which could support researchers and practitioners to interpret the contextual background for understanding reporting in an emerging economy through institutionalisation saying that it is the degree of engagement of stakeholders in the social control and development process.
As an insight for further studies, we believe that there are other relevant questions to be considered in order to stimulate the continuing growth in understanding of the broader aspects of sustainability development and reporting, in this intent, we would recommend comparing the stakeholders' engagement in sustainability development and reporting of the municipalities in emerging countries with that of the developed economy.

Table 4 .
Public agency alignment with sustainability guideline -São Caetano do Sul.

of the Art of the implementation of the indicator by São Caetano do Sul
Obligatory aspect in compliance with Supplementary Law 131 27th May, 2009 of Article 48 of Brazilian Law 101 of 4th May 2000 and a breakdown in policies for a good number of area such as: Agents from the Villa, Standby attendance, counsellors coordination of social actions, arbitration, sewage/water, college of technology, memory revival, social fund, sports/tourism, urban services, heath, economic dev, inland revenue, environment dev., mobility studies, works, security and information technology.

Table 5 .
Public agency alignment with sustainability guideline -Diadema municipality.

of the Art of the implementation of the indicator by Municipality of Diadema
Obligatory aspect in compliance with Supplementary Law 131 27th May, 2009 of Article 48 of Brazilian Law 101 of 4th May 2000.And at the corporate web site you can monitor budgetary dispensation, revenue, expenditures as well as the state of art of Fiscal Responsibility and reports on public audience.