Sustainability risk management implementation and its impact on the corporate survival of environmentally sensitive listed companies in Malaysia
The changes in business environment such as technological expansion and globalisation are reshaping the business landscape and have increased pressure to companies to place greater emphasis on the emerging sustainability risks. Sustainability risk management (SRM) is an extension to Enterprise Risk...
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| Format: | Thesis |
| Language: | eng eng |
| Published: |
2018
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/7639/1/s93982_01.pdf https://etd.uum.edu.my/7639/2/s93982_02.pdf |
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| Summary: | The changes in business environment such as technological expansion and globalisation are reshaping the business landscape and have increased pressure to companies to place greater emphasis on the emerging sustainability risks. Sustainability risk management (SRM) is an extension to Enterprise Risk Management (ERM) approach to manage the broad spectrum of risks arising from sustainability issues such as climate change, resources depletion and natural catastrophes with the aim to maximise environmental, social and economic performances for corporate survival while preserving communities and the environment. The purpose of this research is to examine the impact of sustainability risk management (SRM) implementation and SRM key factors on the corporate survival of environmentally sensitive listed companies in Malaysia. Further, the study also determine the moderating effect of ERM level of implementation on the relationship between SRM key factors and corporate survival relationship.
The study adopts a triangultion method, which is a combination of a survey and a case study. A total of 53 survey responses are collected and four companies are interviewed. The findings of the study revealed that only compliance has significant effect on the corporate survival of environmentally sensitive listed companies. Findings also confirmed that ERM level of implementation does not moderates the relationship between SRM key factor of compliance and corporate survival. This study makes several theoretical contributions and provides further insights about the extent of sustainability risk integration into ERM practices in Malaysia. The findings of the study showed that environmentally sensitive companies are in the early stages of SRM implementation. In the context of current business environment, companies can no longer spot the known risks but also keep watching and estimating the unknown events that may have extreme impact on their businesses. The results of this study offer
valuable insight to environmentally sensitive companies, regulators, and researchers to further understand the effects of SRM implementation on corporate survival. The study recommends that sound risk culture, adequate risk management tools and effective business continuity planning would be beneficial to environmentally sensitive companies in responding to the emerging environmental and social risks. |
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