Essentials of Enterprise Risk Management

CHAPTER 8

ERM and Social Responsibility

Introduction

In the past decade, social responsibility has evolved to become an important element of risk management. A key part of the reputational image of the firm, integrating social responsibility into the enterprise risk management framework of the firm is an effective strategy to keeping the firm’s stakeholders satisfied and the organization’s reputation in high esteem. Increasingly reports, surveys and rankings are conducted on the social license to operate.¹ The trustworthiness, environmental footprint, social responsibility and overall perceived quality of citizenship of the firm is increasingly being questioned and becoming a factor in the success of the organization. The perceived social responsibility ...