Reseach On Theories & Approaches Of Corporate Environmental Risk And Value Management

Industry manufacturing is the backbone of national economy and the source of environmental pollution. Althrough there have been many theoretical researches on the ethical & moral perspectives of sustainable environment, the fundamental of corporate environmental issues is environment-induced economical risks of finanal loss and operational interruption. From economic perspective, the companies need to establish the environmental risk management system to deal with the changing context of business sustainability and increasing environment related risks, and to mitigate the risk cost, increase the competitive advantages, financial gains and company value. Only the companies implement environmental-economic sustainable practices, the macro –level sustainable environment can be achieved.With the framework of corporate “triple bottom line”, this research is to analyze and construct the concepts and connotations related to the corporate environment risks and values first. Then the mechanisms of environment risks are investigated such as risk factors, transferring paths, and path-dependent features of financial impacts. The appoachs of corporate envriomental risk and value management are presented, ie, the environmental-economic sustainability value management, risk management and control with the aim of providing theorectical and practical instructions on establishing coporate environment risk management systems.In this dissertation, the research contents consist of three parts:Part 1: The theorectical analysis. From the perspective of the business “triple bottom line”, the theorectical basis is discussed and construced for environmental-economic sustainability risk management, consisting of comptemporay enterprise theory, sustainbal development, stakeholder theory. The definitions are presented consisting of coporate sustainable development and sustainability, environmental-economic sustainability management, coporate environment risk and values etc. From system perspective, this study analyses and presents the essential of environment issue is the inter-relation among corporate legal economic system, earth ecological system, mankind social economical system. In business economic way, the essential of corporate environment risk management is analysed and clarified as corporate-specific value management related to each business activity as three basic attributes of corporate envrioment issue are revealed as technical, economic and of economic-externality.Secondly, the combination analysis framework of corporate environment risk and value is dicussed and given according to the procedural method of risk management, the strategic advantage analysis and engineering risk analysis. The environment risk path and inter-relation are investigated and given among material system, stakeholders, and internal factors. The transferring path of environment economic risks is constructed and analysed.The analysis framework of financial impacts induced by environmental risk issues is discussed and given. By using the life-cycle method, the path-dependent features and mechanisms of financial impacts are analysed. The financial risk math model is constructed and analysied. The financial value factors and mechanism of corporate environment risk management are discussed further. Based on cashflow NPV analysis, the financial impact factors and mechanisms are explored.Part 2: The approaches of constructing corporate environment risk management system: environmental-economic sustainability value management, risk management and control. The theorectical perspectives of environment- economic relation are discussed. This study proposed the positive environment- economic relation within the context of sustainable deveploment.Based on the analysis of the characteristics of steel enterprise and its impact on the environment, we use four first class indexes, i.e. economic efficiency index,resource and energy efficiency index, ecological environmental efficiency index and circular economy index and sales revenue, economic value added and 14 level two indexes of the eco-efficiency of steel enterprise evaluation index system established by analysis of expert investigation and analytical hierarchy process.We determine the index weight, then we empirical study on eco-efficiency evaluation of Chinese steel enterprise by using the grey comprehensive evaluation model of center-point triangle whitenization weight functionBased on strategic management, corporate capability, the balance scorecard strategic model, consolidating mode, process, constructing elements and strategy map etc, are studied under “triple bottom line” business sustainability value management framework.The drivers and cause-effect relations of empirical researches on environment-economic relation are discussed. Based on contingency, management control,and risk management, the theorectical model of environmental-economic sustainability risk management factors and control system is presented. It is studied that corporate internal control systems consist of sustainable environment accounting system, organizational structures and other management systems, and engineering management control system, as well as their interactions. The engineering management strategies are studied. The conceptual framework of environment cost management system is presented.Part 3: empirical studies. The questionairs are designed for two industry studies conducted in 2006 and 2009. Based on the findings of multi-regression statistical analysis, the path transferring in theoretical model of corporate environment risk management is further revised.The findings of empirical studies show the environmental institutional changes of China government have much impact on changing company environment practices. The external factors in environmental-economic risk management are the main drivers of environmental performance, of which the legal factor is the primary driver.The data analysis provides the rationale evidence to the models of risk management factors and path as proposed in this study. The empirical results indicate the internal risk management system hasn’t been established in the questionnaire companies.