Paulina P.Y. Wong, Mike S.F. Hui and Angus W.H. Yip
Addressing Environmental, Social and Governance (ESG) issues has become a critical aspect of business strategy. Since ESG has primarily focused on ratings and measures for…
Abstract
Purpose
Addressing Environmental, Social and Governance (ESG) issues has become a critical aspect of business strategy. Since ESG has primarily focused on ratings and measures for reporting, there is a scarcity of methods to assist stakeholders in better comprehending corporate risk and addressing ESG-related issues and problems. The purpose of this paper is to propose a new model to narrow the critical gap.
Design/methodology/approach
This study is based on several well-known structural frameworks for managing risks and projects in various industries. Two case studies on topics related to environment (E) and social (S) responsibility are used to demonstrate the practical implementation of the CEPAR® model.
Findings
The CEPAR® model, a trademarked five-step methodology (the Challenge-Evaluation-Planning-Action-Review model) was developed by the International Chamber of Sustainable Development (ICSD). The method and guidelines are outlined for easier appreciation by stakeholders of corporations to analyze ESG-related challenges and dilemmas, then able to make principled decisions, take actions, and review the outcomes. Each phase of the new model adheres to the theoretical and practical frameworks for problem-solving and decision-making, emphasizing the iterate process of addressing challenges, evaluating materiality, planning actions, taking actions, and reviewing the outcomes.
Originality/value
The new model is applicable for business corporations and organizations seeking to gain insight and tackle crucial ESG issues, ultimately improving their short- and long-term decision-making and business opportunities.