The way our decisions and actions can affect future generations is surrounded by uncertainty. This is evident in current discussions of environmental risks related to global climate change, biotechnology and the use and storage of nuclear energy. The aim of this paper is to consider more closely how uncertainty affects our moral responsibility to future generations, and to what extent moral agents can be held responsible for activities that inflict risks on future people. It is argued that our moral (...) responsibility to posterity is limited because our ability to foresee how present decisions and activities will affect future people is limited. The reason for this is primarily that we are in a situation of ignorance regarding the pace and direction of future scientific and technological development. This ignorance reduces our responsibility in a temporal dimension because in most areas it is impossible to predict the interests and resource needs of future generations. In one area, however, we have fairly reliable knowledge about future people. It is reasonable to assume that future human beings will have the same basic physiological (physical and biological) needs as we have. On this basis, it is argued that we can be held responsible for activities causing avoidable damage to critical resources that are necessary to provide for future physiological needs. Furthermore, it is suggested that it is prima facie immoral to impose risks upon future generations in cases where the following conditions are fulfilled: (1) the risk poses a threat to the ability of future generations to meet their physiological needs, and (2) the risk assessment is supported by scientifically based harm scenarios. (shrink)

Recently, international funding agencies and practitioners in the area of corporate social responsibility and small and medium enterprises have argued that microfinance institutions could promote the adoption of environmentally friendly business practices in microenterprises in developing countries. This article explores the potential and limitations of MFIs in promoting the spread of environmental risk management techniques and practices in microenterprises using a case study of an MFI-sponsored pilot program in this area in El Salvador. The author argues that caution (...) should be exercised about the role that MFIs can play in relation to inducing change to the environmentally harmful practices of micro-entrepreneurs. In fact, this study reveals that the MFI had some difficulties in building internal skills and reconciling its environmental and performance objectives, limiting its ability to assist microenterprises in the area of environmental management. Furthermore, the pilot program, as it was designed, did not sufficiently take into account the psychological and financial barriers that constrain micro-entrepreneurs’ capacity to engage in any meaningful environmental behavior change. Finally, factors such as the lack of an adequate legal framework and local infrastructure also countered the effort of the MFI and limited the potential of microenterprises for effectively engaging in environmental risk management practices. The article concludes by outlining the implications of this analysis for future research, policy, and practice in this area. (shrink)

Precaution is a relevant and much-invoked value in environmental risk analysis, as witnessed by the ongoing vivid discussion about the precautionary principle (PP). This article argues (i) against purely decision-theoretic explications of PP; (ii) that the construction, evaluation, and use of scientific models falls under the scope of PP; and (iii) that epistemic and decision-theoretic robustness are essential for precautionary policy making. These claims are elaborated and defended by means of case studies from climate science and conservation biology.

Public decisions on environmental risk have traditionally been weighed in terms of the principle of efficiency and its methodologies, such as cost-benefit and risk-benefit analysis. These original essays argue for moving beyond the market paradigm toward making policy that incorporates environmental values. Scholars representing a broad range of disciplines present a thorough analysis and methodological investigation of environmental risk and the potential for integrating environmental values into the policymaking process. They address the normative (...) and theoretical roots of environmental risk, describe the distinct domain that exists for environmental values as opposed to economic values, and look at the conflicts between economic and environmental values within the applied context of the NIMBY (not in my back yard) phenomenon. (shrink)

In this paper we present six criteria for assessing proposed solutions to environmental risk problems. To assess the final criterion-the criterion of ethical responsibility-we suggest another series of criteria. However, before these criteria can be used to address ethical problems, business persons must be wiIling to discuss the problem in ethical terms. Yet many decision makers are unwilling to do so. Drawing on research by James Waters and Frederick Bird, we discuss this “moral muteness”-the inability or unwillingness to (...) use morallanguage to solve moral problems-and suggest some underlying causes of moral muteness. (shrink)

Using the example of air pollution, I criticize a restricted utilitarian view of environmental risks. It is likely that damage to health due to environmental pollution in Western countries is relatively modest in quantitative terms (especially when considering cancer and comparing such damage to the effects of some life-style exposures). However, a strictly quantitative approach, which ranks priorities according to the burden of disease attributable to single causes, is questionable because it does not consider such aspects as inequalities (...) in the distribution of risks. Secondly, the ability of epidemiological research to identify some health effects is limited. Third, the environment has symbolic and aesthetic components that overcome a strict evaluation of damage based on the impairment of human health. It is not acceptable that priorities be set just balancing the burden of disease caused by pollution in the environment against economic constraints. As an example of a computation that inherently includes economic analysis, I refer to the proposal of an estimator of mortality in coal mining, i.e., a rate which puts deaths in the numerator and tons of coal extracted in the denominator. According to this estimator, mortality due to accidents decreased from 1.15 to 0.42 in the period 1950–1970 in the United States, for each million tons of coal extracted. However, considering the steep decline in the workforce in the same period, the traditional mortality rate (deaths over persons-time) actually increased. The proposal of a measure of mortality based on the amount of coal extracted is just one example of the attempts to influence decisions by including an economic element (productivity) in risk assessment. This paper has three purposes: One, to describe empirical research concerning the health effects of environmental pollutants; two, to discuss the scientific principles and methods used in the identification of environmental hazards; and three, to critically discuss some of the ethical principles which are applied in medicine and in the assessment and management of risk. (shrink)

Despite the application of 2.5 million tons ofpesticides worldwide, more than 40% of all potentialfood production is lost to insect, weed, and plantpathogen pests prior to harvest. After harvest, anadditional 20% of food is lost to another group ofpests. The use of pesticides for pest control resultsin an estimated 26 million human poisonings, with220,000 fatalities, annually worldwide. In the UnitedStates, the environmental and public health costs forthe recommended use of pesticides total approximately$9 billion/yr. Thus, there is a need for (...) alternativenon-chemical pest controls, and genetic engineering(biotechnology) might help with this need. Diseaseand insect pest resistance to various pests has beenslowly bred into crops for the past 12,000 years;current techniques in biotechnology now offeropportunities to further and more rapidly improve thenon-chemical control of disease and insect pests ofcrops. However, relying on a single factor, like theBacillus thuringiensis toxin that has beeninserted into corn and a few other crops for insectcontrol, leads to various environmental problems,including insect resistance and, in some cases, athreat to beneficial biological control insects andendangered insect species. A major environmental andeconomic cost associated with genetic engineeringapplications in agriculture relates to the use ofherbicide resistant crops (HRC). In general, HRCtechnology results in increased herbicide use but noincrease in crop yields. The heavy use of herbicidesin HRC technology pollutes the environment and canlead to weed control costs for farmers that may be2-fold greater than standard weed control costs. Therefore, pest control with both pesticides andbiotechnology can be improved for effective, safe,economical pest control. (shrink)

Standard approaches to defining and evaluating environmental risk tend to reflect technocratic rather than democratic values. One consequence is that institutional mechanisms for achieving citizen participation in risk decisions rarely are studied or evaluated. This article presents a survey of five institutional mechanisms for allowing the lay public to influence environmental risk decisions: public hearings, initiatives, public surveys, negotiated rule making, and citizens review panels. It also defines democratic process criteria for assessing these and other (...) participatory mechanisms. (shrink)

Despite significant scientific uncertainties and strong public opposition, there appears to be an “iron triangle” of industry, government,and consultants/contractors promoting the siting of the world’s first permanent geological repository for high-level nuclear waste and spent fuel, proposed for Yucca Mountain, Nevada. Arguing that representatives of this iron triangle have ignored important epistemological and ethical difficulties with the proposed facility, I conclude that the business climate surrounding this triangle appears to leave little room for consideration of ethical issues related to public (...) safety, environmental welfare, and citizen consent to risk. If my analysis of the Yucca Mountain case is correct and typical, then some of themost pressing questions of business ethics may concern how to break the iron triangle or, at least, how to expand it into a quadrilateral that includes the public. (shrink)

The question of environmental responsibility is addressed through comparisons between Hannah Arendt’s and Ulrich Beck’s accounts of the emergent and globally threatening risks associated with acting into nature. Both theorists have been extraordinarily influential in their respective fields but their insights, pointing toward the politicization of nature through human intervention, are rarely brought into conjunction. Important differences stem from Beck’s treatment of risks as systemic and unavoidable side effects of late modernity. Arendt, however, retains a more restrictive anthropogenic view (...) of political action which, while recognizing its unpredictable consequences for human (and nonhuman) others, includes a direct link between individually initiated acts and the taking of ethical responsibility. This latter account best explains the ethical motivations behind much environmental activism. (shrink)

Recent research exposing environmental and social externalities of biofuels has undermined the earlier national consensus that they would provide climate mitigation and rural development benefits, but support for ethanol remains strong in Iowa. The objective of this paper is to understand how stakeholder groups in Iowa have framed the benefits and risks associated with ethanol’s impact on the local economy and environment. Our case study draws on in-depth, semi-structured interviews conducted with key informants from agricultural organizations, environmental organizations, (...) and government departments in the state. We find that in Iowa, widespread support for ethanol production exists among government, energy, and farm groups, and that they frame ethanol production as economically beneficial to rural communities and agriculture, while minimizing the possibility of associated environmental risks. Although participants from environmental organizations in Iowa express apprehension about the environmental impacts of expanded corn ethanol production, their unease is muted in relation to economic benefits and in relation to other environmental issues, and few have publicly voiced their concerns. To understand these findings, we draw from the environmental sociology literature that examines the role of powerful natural resource interests in framing the importance of resource extraction and commodity production to community identity and economy and in delegitimizing and naturalizing associated environmental issues and problems. We argue that powerful natural resource interests in Iowa both naturalize environmental problems related to ethanol production and engage in diversionary reframing to emphasize the economic benefits while minimizing or rejecting the potential environmental risks. (shrink)

The current paper synthesizes theory and data from the field of life history (LH) evolution to advance a new developmental theory of variation in human LH strategies. The theory posits that clusters of correlated LH traits (e.g., timing of puberty, age at sexual debut and first birth, parental investment strategies) lie on a slow-to-fast continuum; that harshness (externally caused levels of morbidity-mortality) and unpredictability (spatial-temporal variation in harshness) are the most fundamental environmental influences on the evolution and development of (...) LH strategies; and that these influences depend on population densities and related levels of intraspecific competition and resource scarcity, on age schedules of mortality, on the sensitivity of morbidity-mortality to the organism’s resource-allocation decisions, and on the extent to which environmental fluctuations affect individuals versus populations over short versus long timescales. These interrelated factors operate at evolutionary and developmental levels and should be distinguished because they exert distinctive effects on LH traits and are hierarchically operative in terms of primacy of influence. Although converging lines of evidence support core assumptions of the theory, many questions remain unanswered. This review demonstrates the value of applying a multilevel evolutionary-developmental approach to the analysis of a central feature of human phenotypic variation: LH strategy. (shrink)

In this essay, I argue that environmental risk is a strategic situation that places the individual citizen in the position of an imprisoned rider who is being exploited without his or her knowledge by the preferences of others. I contend that what is at stake in policy decisions regarding environmental risk is not numerical probabilities or consistent, complete, transitive preferences for individual welfare, but rather respect for the human agency of the individual. Human agency is a (...) prerequisite to one’s utility function and is threatened and exploited in the strategic situation that produces the imprisoned rider. This problem is created by the policy maker’s assumption that his or her task is to assume rational preferences and aggregate them. The guidelines for evaluation and justification of policy should move beyondwelfare preferences and involve an active state protecting human agency and empowering the imprisoned rider. Only in this way can we free all citizens from fear of exploitation by those who would impose collective and irreversible risk on each of them in violation of their unconditional right to their own agency. (shrink)

In this essay, I argue that environmental risk is a strategic situation that places the individual citizen in the position of an imprisoned rider who is being exploited without his or her knowledge by the preferences of others. I contend that what is at stake in policy decisions regarding environmental risk is not numerical probabilities or consistent, complete, transitive preferences for individual welfare, but rather respect for the human agency of the individual. Human agency is a (...) prerequisite to one’s utility function and is threatened and exploited in the strategic situation that produces the imprisoned rider. This problem is created by the policy maker’s assumption that his or her task is to assume rational preferences and aggregate them. The guidelines for evaluation and justification of policy should move beyondwelfare preferences and involve an active state protecting human agency and empowering the imprisoned rider. Only in this way can we free all citizens (a priori) from fear of exploitation by those who would impose collective and irreversible risk on each of them in violation of their unconditional right to their own agency. (shrink)

Legitimation of public policies that support the widespread plantings of transgenic crops presuppose, among other conditions, that evidence supports that there are no unmanageable environmental risks and there are no better ways to produce enough nourishing food that can dispense with the transgenics-oriented ways. This paper discusses: the kinds of scientific inquiry that are needed to address adequately, the connections between investigations of and , and how these investigations are related with controversial social values.A legitimação de políticas públicas que (...) apóiam o cultivo de lavouras transgênicas em larga escala pressupõe, entre outras condições, que os dados empíricos garantem não haver riscos ambientais não-administráveis e, a não-existência de modos melhores de produzir alimentos sem a utilização de técnicas transgênicas. O artigo discute: Os tipos de investigação científica necessários para um exame adequado da condição , como as investigações sobre e se relacionam entre si, e como tais investigações se relacionam com valores sociais controvertidos. (shrink)

Prior research suggests that voluntary environmental governance mechanisms operate to enhance a firm’s environmental legitimacy as opposed to being a driver of proactive environmental performance activities. To understand how these mechanisms contribute to the firm’s environmental legitimacy, we investigate whether environmental corporate governance characteristics are associated with voluntary environmental disclosure. We examine an increasingly important attribute of a firm’s disclosure setting, namely the disclosure of greenhouse gas (GHG) information. GHG information represents proprietary non-financial information (...) about the firm’s exposure to environmental concerns and is related to the firm’s operations and future profitability. Thus, we expect governance participants would view such information as a potentially important strategic device for managing stakeholders’ demands for information concerning environmental risks. We find that the presence of an environmental committee and a Chief Sustainability Officer (CSO) is positively associated with the likelihood of GHG disclosure and that CSOs are associated with disclosure transparency. Further analysis reveals that the likelihood of disclosure is associated with committee size, number of committee meetings, expertise of committee members and CSO, and overlap between the environmental committee and audit committee. Only expertise of the environmental committee members and the CSO are associated with GHG disclosure transparency, while larger committees tend to be associated with lower transparency. Our results are particularly important to those with interests in evaluating the potential role that corporate governance mechanisms play in responding to stakeholder concerns about environmental risks. Directors and officers who are considering appointment to similar governance positions, may wish to consider what attributes would make such governance positions more influential. (shrink)

The papers in this special issue of Human Nature collectively consider societal and individual responses to a wide variety of environmental and social risks. The first paper considers societal level effects of pathogen risk on collectivism and conformity, avoidance of outsiders, and in-group loyalty in a worldwide cross-cultural sample. The second deals with societal-level effects of resource unpredictability on the nature and conduct of warfare in eastern Africa. The third deals with effects of volcanic eruptions and earthquakes and (...) mediating factors on individual perceptions of risk in Mexico and Ecuador. The final paper deals with effects of various types of father absence on women’s reproductive life histories in Bangladesh. (shrink)

Although much attention has been given to the role of community stakeholders in developing environmental risk- management policies, most local and national initiatives are better known for their failings than their successes. One reason for this continuing difficulty, we contend, is a reluctance to address the many difficult value trade-offs that necessarily arise in the course of creating and evaluating alternative risk- management options. In this paper we discuss six reasons why such trade-offs are difficult and, for (...) each, present helpful techniques from the decision sciences along with case study examples of successful applications. (shrink)

It is now widely acknowledged that social theorists can make an important contribution to our understanding of environmental risk. There is however a danger that the current ascendancy of social theory will encourage a tendency to assimilate issues around environmental risk to those at stake in entrenched debates between realist and constructivist social theorists. I begin by citing a recent example of this trend, before going on to argue that framing the issues in terms of a (...) monism/pluralism dichotomy would make for a more informative analysis. Nothing that realists and constructivists can make common cause against risk monism, I turn, in the second half of the paper, to setting out a positive case for risk pluralism. Citing some fictional examples of risk behaviour, I show how different individuals might rationally adopt different perspectives on the same risk. I conclude by exploring some implications of the truth of risk pluralism for two current approaches to environmental decision-making. I argue that the importance of risk pluralism lies in its capacity to highlight the shortcomings of the latter approach. (shrink)

Societal evaluation of new technologies, specifically nanotechnology and genetically engineered organisms , challenges current practices of governance and science. Employing environmental risk assessment for governance and oversight assumes we have a reasonable ability to understand consequences and predict adverse effects. However, traditional ERA has come under considerable criticism for its many shortcomings and current governance institutions have demonstrated limitations in transparency, public input, and capacity. Problem Formulation and Options Assessment is a methodology founded on three key concepts in (...) risk assessment and three in governance . Developed through a series of international workshops, the PFOA process emphasizes engagement with stakeholders in iterative stages, from identification of the problem through comparison of multiple technology solutions that could be used in the future with their relative benefits, harms, and risk. It provides “upstream public engagement” in a deliberation informed by science that identifies values for improved decision making. (shrink)

Societal evaluation of new technologies, specifically nanotechnology and genetically engineered organisms, challenges current practices of governance and science. When a governing body is confronted by a technology whose use has potential environmental risks, some form of risk analysis is typically conducted to help decision makers consider the range of possible benefits and harms posed by the technology. Environmental risk assessment is a critical component in the governance of nanotechnology and genetically engineered organisms because the uncertainties and (...) complexities surrounding these technologies pose such risk potential. However, GEOs are unique technologies, and there is widespread, international recognition that many traditional forms of ERA are not well-suited for evaluating them. Nanotechnology products are also likely to need different models of risk assessment, as there is very little information on their fate, transport, and impacts in the environment. (shrink)

In this article, a framework is suggested to deal with the analysis of global environmental risk governance. Climate Change is taken as a particular form of contemporary environmental risk, and mobilised to refine and characterize some salient aspects of new governance challenges. A governance framework is elaborated along three basic features: (1) a close relationship with science, (2) an in-built reflexivity, and (3) forms of governmentality. The UNFCCC-centered system is then assessed according to this three-tier framework. (...) While the two-first requisites are largely met, the analysis of governmentality points to some institutional weak spots. (shrink)

Social decision-making involving risks ideally results in obligations to avoid expected harms or keep them within acceptable limits. Ambitious goals aimed at avoiding or greatly reducing risks might not be feasible, forcing the acceptance of higher degrees of risk (i.e. unrealistic levels of risk reduction are revised to comport with beliefs regarding abilities). In this paper, the philosophical princi- ple ‘ought implies can’ is applied to the management of complex risks, exempli- fied by the risks associated with climate (...) change. In its common interpretation, the principle states that we cannot expect an agent to perform something that lies beyond his or her abilities. However, it is here argued that this principle requires setting thresholds for legitimate claims of inabilities that justify the waiving of normative demands. This paper discuss three claims: (1) that caution is required before revising a risk-reducing goal that is perhaps exceedingly ambitious; (2) that claims on abilities are not only descriptive, but also value-laden; and (3) that the function of a goal has to be clarified before risk-reducing goals are revised. Risk-reducing goals that initially seem unrealistic arguably serve performance- enhancing purposes in risk management. Neglecting such goals could lead to choosing less desirable, but certainly feasible, risk-reducing goals. (shrink)

While there is an extensive literature on how the precautionary principle should be interpreted and when precautions should be taken, relatively little discussion exists about the fair distribution of costs of taking precautions. We address this issue by proposing a general framework for deciding how costs of precautions should be shared, which consists of a series of default principles that are triggered according to desert, rights, and ability to pay. The framework is developed with close attention to the pragmatics of (...) how distributions will affect actual behaviours. It is intended to help decision-makers think more systematically about distributional consequences of taking precautionary measures, thereby to improve decision-making. Two case studies—one about a ban on turtle fishing in Costa Rica, and one about a deep-sea mining project in Papua New Guinea—are given to show how the framework can be applied. (shrink)

In certain cases of sudden death, forensic experts may discover during an investigation or autopsy that family members of the deceased are also at risk of harm—from genetic disease, for instance. But do they have a duty to warn them? Looking at similar duties of physicians and researchers to warn third parties of risk suggests they do.

A central point of debate over environmental policies concerns how future costs and benefits should be assessed. The most commonly used method for assessing the value of future costs and benefits is economic discounting. One often-cited justification for discounting is uncertainty. More specifically, it is risk aversion coupled with the expectation that future prospects are more risky. In this paper I argue that there are at least two reasons for disputing the use of risk aversion as a (...) justification for discounting when dealing with longterm decisions, one technical and one ethical. Firstly, I argue that technically, it implies an inconsistency between theory and practice. And secondly, I argue that discounting for uncertainty relies on a form of individualism which, while reasonable in standard microeconomic theory where an agent chooses how to spread her own consumption over her own lifetime, is inappropriate in the context of intergenerational social decisions. (shrink)

Amongst the environmental and social externalities generated by Australian agriculture are a number of risks both to the health and safety of communities living near sites of agricultural production, and to the end consumers of agricultural products. Responses to these potential risks – and to problems of environmental sustainability more generally – have included a number of programs to variously: define “best-practice” for particular industries; implement “Quality Assurance” procedures; and encourage the formation of self-help community “Landcare” groups. Taken (...) together, these programs appear to deal comprehensively with both the social and environmental risks associated with agricultural production and products. However, these programs may also be interpreted as strategies that actually encourage the further intensification of agriculture, while attempting to reassure consumers that their food is safe and that farmers are doing “all they can” to protect the environment. Investigation of the Australian cotton and beef industries illustrates a number of strategies that have become evident between farmers, agri-science agencies, and the retail sector to manage these risks and define good farming practices in ways that satisfy their own perceived interests. Contrary to the image, therefore, of “green consumption” that is emerging as an integrated concern for “clean” (and thereby “healthy”) and sustainably produced foods, it appears that mainstream agricultural industries have bifurcated these concerns in ways that distract attention from production and processing methods, leaving conflict over on-farm production methods a characteristic only of those industries believed to have direct health impacts on nearby communities. (shrink)

We examine the link between a firm’s environmental and social disclosures and measures of its risk including total, systematic, and idiosyncratic risk. While we do not find any link between a firm’s E and S disclosures and its systematic risk, we find a negative and significant association between these disclosures and a firm’s total and idiosyncratic risk. These are novel findings and are consistent with the predictions of the stakeholder theory and the resource-based view of (...) the firm suggesting that firms which make extensive and objective E and S disclosures promote corporate transparency that can help them build a positive reputation and trust with their stakeholders. This in turn can help mitigate the firms' idiosyncratic/operational risk. These findings are important for all corporate stakeholders including managers, employees, and suppliers who have a significant economic interest in the survival and success of the firm. (shrink)

In this study, we examine the relation between corporate environmental responsibility and risk in U.S. public firms. We develop and test the risk-reduction, resource-constraint, and cross-industry variation hypotheses. Using an extensive U.S. sample during the 1991–2012 period, we find that for U.S. industries as a whole, CER engagement inversely affects firm risk after controlling for various firm characteristics. The result remains robust when we use firm fixed effect or an alternative measure of CER using principal component (...) analysis or downside risk measures. To address the concern of endogeneity bias, we use a system equations approach and dynamic system generalized methods of moment regressions, and continue to find that environmentally responsible firms experience lower risk. These findings support the risk-reduction hypothesis, but not the resource-constraint hypothesis, along with the notion that the top management in U.S. firms is generally risk averse and that their CER engagement facilitates their risk management efforts. Our cross-industry analysis further reveals that the inverse CER-risk association mainly comes from the manufacturing sector, whereas in the service sector, CER tends to increase firm risk. (shrink)

Quantitative health risk assessment is a procedure for estimating the likelihood that exposure to environmental contaminants will produce certain adverse health effects, most commonly cancer. One instance of its use has been a California air toxics public “right-to-know” law. This article examines the ways in which credible health risk measurements were produced and challenged during the implementation of the California public policy. Fieldwork and documentary analysis finds that stakeholders negotiated within the formal constraints of the risk (...) assessment procedures but still expressed their competing visions for the implementation of the risk communication policy. The abstract results of the method were contextualized according to different time frames and allocations of uncertainty. Furthermore, the article demonstrates that the political process privileged consistency of measurement over accuracy, revealing political negotiations at a fundamentally technical level. The struggle and variation in interpretations can be explained best by the demand to organize the program around the discordant values of democratic accountability and technical efficiency. (shrink)

This paper is organised in three interconnected parts. First, contemporary political economic approaches to understanding the structure of the global economic system are outlined and synthesised. Specifically, it is suggested that the current structural configuration of the globe is a transitional phase between the spatially-bounded configuration hypothesised by world-system theory and the configuration hypothesised by globalisation theorists. Second, the contemporary problem of environmental degradation is situated in a global structural context. Third, an outline and critique of Ulrich Beck 's (...) theory of the ' Risk Society ' is presented to illustrate the increasing inadequacy of nation-state-centric theories in explaining the dynamic linkage between global capitalism and local environmental degradation. (shrink)

We investigate the association between a wide range of community-level environmental, social, and governance (ESG) outcomes and the credit risk of U.S. municipal finance fixed-income securities. We develop a novel dataset of multiple ESG outcomes for U.S. counties and connect it to a 2001-2020 panel of municipal bonds issued within those counties. Overall, we find supportive evidence that collective increases in community-level ESG factors (i.e., ESG outcomes) are associated with reductions in credit risk for U.S. municipal finance (...) instruments over time. We theorize that these associations arise from variations in investor perceptions and manifested changes in fiscal health over time as a function of changing ESG outcomes. Post hoc analyses leveraging quasi-exogenous shocks to uncertainty, as well as connecting ESG outcomes to various measures of fiscal health at the county-year level, and credit ratings at the bond-year level, help validate this theory. Our research suggests that even socially agnostic investors should investigate the environmental and social performance of a municipality as part of their credit due diligence. (shrink)

According to information asymmetry theory and stakeholder theory, this article explores the impact and mechanism of environmental, social, and governance information disclosure on the company’s future stock price crash risk based on the A-share listed companies from 2010 to 2019. We find that ESG information disclosure significantly reduces the company’s future stock price crash risk. This conclusion remains robust after a series of robustness tests, such as PSM-DID. The heterogeneity analysis shows that the negative relationship between ESG (...) disclosure and stock price crash risk is more significant in state-owned enterprises, companies with higher agency costs, and when companies in the bull market. The mechanism is that companies choose to disclose ESG information to alleviate information asymmetry problems and enhance corporate reputation capital, thus reducing the future stock price crash risk. This article shows that strengthening ESG construction will help improve the efficiency of China’s resource allocation and promote the capital market development. (shrink)

The present study aimed at investigating the heavy metals concentrations in the soils around “Larga de Sus” abandoned mine, evaluating the potential ecological risk of heavy metal pollution and highlighting ethical aspects related to risk assessment, ecological restoration, and soil remediation. The results of the chemical analysis showed that the soil in the study area is highly polluted with heavy metals since the average concentrations of Pb, and Ni in soil exceed their corresponding threshold established by the Romanian (...) legislation. The potential ecological risk index method developed by Hakanson was used to assess the potential risk of heavy-metal pollution. The results indicated that Pb and Ni showed severe and considerable potential ecological risk, while Cr had lightly ecological risk. In this case, remediation should be focused only on Pb or on all heavy metals even if they have lightly ecological risk? A scientific management technique cannot logically prescribe which choices should be selected. The interaction between human activity and the environment is complicated and difficult to quantify and risk management cannot and should not be based simply on risk assessment results. What is needed to make the right choice of the most appropriate alternative that fits our personality, culture, religion, and desires? The moral and ethical implications of ecological restoration and soil remediation have to be incorporated within the decision-making process in order to make optimum sustainable decisions and to achieve real environmental protection. (shrink)

The present study aimed at investigating the heavy metals concentrations in the soils around “Larga de Sus” abandoned mine (Zlatna, Romania), evaluating the potential ecological risk of heavy metal pollution and highlighting ethical aspects related to risk assessment, ecological restoration, and soil remediation. The results of the chemical analysis showed that the soil in the study area is highly polluted with heavy metals since the average concentrations of Pb (32.4–2318.1 mg/kg), and Ni (321.6–562.8 mg/kg) in soil exceed their (...) corresponding threshold established by the Romanian legislation. The potential ecological risk index method developed by Hakanson was used to assess the potential risk of heavy-metal pollution. The results indicated that Pb and Ni showed severe and considerable potential ecological risk, while Cr had lightly ecological risk. In this case, remediation should be focused only on Pb or on all heavy metals even if they have lightly ecological risk? A scientific management technique cannot logically prescribe which choices should be selected. The interaction between human activity and the environment is complicated and difficult to quantify and risk management cannot and should not be based simply on risk assessment results. What is needed to make the right choice of the most appropriate alternative that fits our personality, culture, religion, and desires? The moral and ethical implications of ecological restoration and soil remediation (e.g. tolerance of uncertainty, responsibility, moral duty, etc.) have to be incorporated within the decision-making process in order to make optimum sustainable decisions and to achieve real environmental protection. (shrink)

In this article, we examine how firms design executive compensation in light of their risk environment. Prior literature shows that corporate environmental responsibility (CER) of a firm inversely affects firm risk. We argue that firms with better CER performance benefit from the reduced firm risk, and therefore are more likely to provide greater managerial risk‐taking incentives to encourage the risk‐averse managers to undertake risk‐increasing but positive net present value (NPV) investments. Consistent with our (...) hypotheses, we find that a firm’s CER rating is positively associated with its CEO risk‐taking incentives (vega) in the following year. We also document cross‐sectional variations in the CER‐vega relationship, that is, a weaker association in the controversial industries. This study contributes to the literature by investigating the role of CER on executive compensation design from the perspective of risk management. (shrink)

Despite much research now being published on Environmental, Social, and Governance (ESG) investments and Initial Public Offerings (IPOs) withdrawal risk, there appears to be a lack of evidence on the prospective IPO withdrawal risk associated with voluntary disclosure of ESG policies. This paper investigates the influence of ESG disclosure on IPO withdrawal by comparing voluntary ESG disclosure to conventional IPOs in the international market. A large data set is employed here, containing 33,535 failed and successful IPOs from (...) 1995 to 2019 from several nations with their own legal systems, cultural norms, and economic systems. The findings reveal that voluntary disclosure of ESG practices does significantly reduce the likelihood of an IPO withdrawal, by as much as 48%. These findings strongly suggest that organizations engaged in ESG activities perceive voluntary disclosure as an incentive, to adhere to social expectations. Consequently, reducing the asymmetry of information between IPO participants minimizes the withdrawal risk these companies face, hence diminishing doubts about their legitimacy. The results have consequences for IPO businesses, investors, researchers, and regulators. (shrink)