A recent survey by The Economist Intelligence Unit identified both the top influencers of – and benefits derived from – corporate environmental risk management (CERM) programs. Two things are curious about these survey results. First, customers and investors rank relatively low in influence (fourth and seventh, respectively) despite the fact that “better corporate reputation” among these groups ranks as the primary benefit for launching CERM in the first place.
Second, “regulators” and “government” exert significant influence – second only to “executive management” – on companies to initiate CERM programs; in terms of benefits, however, “improved relations with regulators” ranks only eighth.
Risk Manager Responses from Recent Survey by The Economist Intelligence Unit
The high level influence of regulators and government suggests that corporations consider regulatory compliance as the primary measure of CERM success. This focus is understandable given the stiff fines imposed for non-compliance.
Moreover, it also suggests that corporations believe that regulatory compliance is the way to improve its reputation with customers and investors. Yet, while compliance is arguably important with customers and investors, it is simply the place to start.
When it comes to customer and investor groups, focusing solely on regulatory compliance is like driving a car by looking through the rear-view mirror. Quite simply, regulations do not necessarily reflect current consumer and investor expectations regarding corporate actions toward the environment; instead, they reflect those held in the past when the regulations were passed.
This is an important distinction because consumer and investor expectations regarding corporate environmental responsibility continuously evolve. As such, it is likely that current expectations have far surpassed current regulations in place today. Take climate change, for example. There is a growing consensus that carbon must be regulated, yet no binding limits yet exist in the US.
There are other cases where customers or investors actively challenge management’s environmental policies. For example, led by members of the Rockefeller family, ExxonMobil shareholders have made it clear that they believe that when it comes to climate change, compliance with existing regulations is not enough for this oil giant.
As such, corporations that primarily focus on regulatory compliance are likely falling short when it comes to improving their reputation with consumers and investors. Instead, management should try to better understand current customer and investor expectations toward the environment, and how these sentiments evolve with time. This will require corporations to take action that go beyond current regulatory mandates. It will also require recognition that customers and investors hold greater “influence” on CERM decisions than what is commonly realized today.


June 3, 2008 at 3:21 pm
Interesting subject
April 14, 2009 at 6:46 pm
На Ваш блог знакомый в аську ссылку кинул. Оказалось ,что не зря Понравилось. Тепрь постоянно читать буду
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April 27, 2009 at 1:38 am
Интересно и позновательно, а будет еще что-то по этой теме?
April 27, 2009 at 1:04 pm
Я в принципе, мало, что смыслю в этм посте, но постараюсь все таки понять.
May 1, 2009 at 9:26 pm
Очень интересно!!! Только не очень могу понять как часто обновляется ваш блог?
May 3, 2009 at 7:29 pm
Я в принципе, мало, что смыслю в этм посте, но постараюсь все таки понять.
May 8, 2009 at 11:25 pm
Огромное вам человеческое спасибо, очень актуальная заметка.
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May 25, 2009 at 10:24 pm
пока я жив, я буду помнить ваш ресурс
заношу в букмарки….
May 25, 2009 at 10:37 pm
Нет ничего нового под небом…
May 26, 2009 at 1:44 am
Отличный пост получился у вас
May 26, 2009 at 5:29 am
Взял от жизни всё, что и было установлено в ходе обыска.
May 26, 2009 at 8:04 am
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May 26, 2009 at 12:41 pm
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June 6, 2009 at 4:49 am
oriclub
June 20, 2009 at 1:48 pm
Nice post keep èm coming
thimbs up
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