Inherent Negatives: Managing Risk and Reputation, Reconsidering Corporate Social Responsibility

Abstract

This paper introduces the idea of inherent negatives, that is, risks inherent in the business model and value chain that increase the more successful the enterprise is. We argue that a systematic approach to these risks can be taken through a model that manages both downside risks (including issues management) as well as upside value creation, through, for example, brand building and reputation management and include ways of evaluating upstream and downstream risk which are often overlooked. We place this model in the context of contemporary discussions of Corporate Social Responsibility suggesting that CSR aligned with the business model is necessary for sustainable CSR while risk must be sufficiently mitigated before either CSR as currently understood or new trends in the relationship between business and society can be realized.