RT Journal Article
T1 Managing Reputational Risk through Environmental Management and Reporting: An Options Theory Approach
A1 Piñeiro Chousa, Juan Ramón
A1 Vizcaíno González, Marcos
A1 López Cabarcos, María Ángeles
A1 Romero Castro, Noelia María
K1 Corporate social responsibility
K1 Corporate reputation
K1 Reputation management
K1 Risk management
K1 Financial risk
AB Reputation is a complex and multidimensional concept that may be organized in downside and upside reputational risk. In this article, we present a formal modelling for the management capabilities of environmental management and reporting over reputational risk, considering that reputational risk is becoming increasingly important for organizations and it directly depends on the information available about companies’ environmental performances. As long as the effectiveness of communication and disclosure plays a key role in the process, the usefulness of environmental management and reporting as a hedging instrument for reputational risk is addressed through different levels of information transparency. When considering a scenario of voluntary reporting, we show that environmentally concerned companies can reduce the cost of environmental management as a reputational risk strategy, as well as reducing the potential loss of reputational value from reputational threats and increasing the potential profit from reputational opportunities. In the context of mandatory reporting, we highlight the role of assurance companies as bearers of the risk of bad reputations for non-concerned companies. As a result, this novel approach applies theoretical oriented research from options theory to reputational risk management literature, so that it benefits from the option’s well known theory, robustness, and conclusions
PB MDPI
YR 2017
FD 2017
LK http://hdl.handle.net/10347/22650
UL http://hdl.handle.net/10347/22650
LA eng
NO Pineiro-Chousa, J.; Vizcaíno-González, M.; López-Cabarcos, M.Á.; Romero-Castro, N. Managing Reputational Risk through Environmental Management and Reporting: An Options Theory Approach. Sustainability 2017, 9, 376
DS Minerva
RD 28 abr 2026