The Role of Enterprise Risk Management in Sustainable Decision-Making: A Cross-Cultural Comparison

Sustainability

Xin Liu¹ 

[1] School of Business, Pacific Lutheran University, Tacoma, WA 98447, USA;

关键词: culture;    decision-making;    enterprise risk management;    sustainability;   

DOI  :  10.3390/su11102939

来源: DOAJ

【 摘 要 】

The goal of this paper is to examine how cultural differences moderate the effectiveness of an organization’s enterprise risk management (ERM) program in sustainable decision-making. Using an experimental design, this study found that Chinese participants, characterized by a stronger prevention focus, were more proactive in mitigating environmental, social and governance (ESG)-related risks under a loss-framed risk management philosophy, whereas American participants, characterized by a stronger promotion focus, were more proactive in mitigating ESG-related risks under a gain-framed risk management philosophy. This interactive effect of matching the risk management philosophy frame to the participants’ regulatory focus was mediated by their perceived processing fluency. The implications for the literature and practice are discussed.

【 授权许可】

Unknown