Eighteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

The 2017 wildfires had devastating environmental, social, demographic, and economic impact in Portuguese rural areas. Many lost their lives, homes, jobs, crops, and companies that, in the wake of the disaster, had to quickly react and respond to their stakeholders. This paper sheds light on how companies acted in the aftermath of an environmental disaster, from a stakeholder perspective. Through twenty-six semi-structured interviews to managers and decision makers from local companies, results show that companies were affected in different ways and responses varied according to the degree of suffered damage. Companies had active roles in managing stakeholders’ relationships and expectations, by providing alternatives and quick answers to the crises that ensued the disaster. The response was effective, so workers could have a sense of normality and feel their jobs and income secure; clients would receive their orders; and suppliers their payments. State support was pivotal in the return to normality and triggered the acquisition and adoption of modern and resource efficient equipment. Companies made small long-term changes. They acquired own fire fighting hardware and equipment, or demanded responsibility from landowners and local government, but substantial mitigation procedures and preparedness remain to be adopted by companies, for managers believe that is a State obligation. We conclude that companies recovered faster from the disaster due to strong, positive connections with close and interdependent stakeholders.