CSR und Risikomanagement - Institute for Sustainability

Abstract
In the aftermath of the starting financial crisis in 2008 risk management of companies received
growing attention. Obviously the landscape of risks companies are facing is changing due to
globalization. The Stern Report on climate change and the TEEB study on biodiversity demonstrate
that also risks arising within the context of the megatrends of sustainability become more
important. But there is reasonable evidence that the formal and legally required risk management
is not able to deal with these risks adequately. On the other hand companies that have
integrated CSR into their corporate strategy and their management seem to have a more prospected
view regarding these global developments.
Against this background the present study analyses the interconnections between risk management
and CSR. The results are based on a literature study, an analysis of annual reports of
German and international companies, interviews with German and international experts and discussions
at the German Multistakeholder Workshop on CSR.
One of the initial assumptions was that the formal risk management has to be modified to consider
all risks deriving from the megatrends of sustainability. During the research process, this
assumption was disproved because the formal risk management is shaped by legal requirements,
which usually demand a time frame of two years. Although there are discussions within
the risk management experts to deploy the formal risk management for a wider range of risks,
this position is far from being mainstream. As the risks resulting from megatrends of sustainability
are rather mid long term, they will not be covered fully by the formal risk management
process. Therefore, they need to be identified and managed by CSR-management.
The main findings are:
Risks arising from sustainability megatrends such as climate change, scarcity of resources,
shortage of energy sources and demographic change are becoming increasingly
important for a large number of companies and have to be managed appropriately.
A mature, sophisticated CSR-management contributes to the mitigation of sustainability
risks. Beyond the formal risk management, CSR-management is able to identify uprising
social and ecological risks at an early stage and create awareness for these risks within
the relevant departments and business units. Thus CSR-management is risk management
for sustainability risks.
It is recommended to use the knowledge of the CSR-professionals regarding sustainability
trends for the recurring adjustments of corporate strategy.
Short-term social and ecological risks should be integrated systematically into formal risk
management by appropriately involving CSR-management in the risk management
process.
The point is not where the sustainability risks are considered but that they are taken adequately
into account at all.