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Understanding managers' views of global environmental risk
Stephen D Hill1, Dixon Thompson
1Environmental and Resource Studies, Trent University, Peterborough, Ontario, Canada K9J 7B8. stephenhill@trentu.ca
Environmental Management
|March 4, 2006
Summary
Managers prioritize global environmental risks like climate change and biodiversity loss based on issue salience, knowledge, and perceived effectiveness of responses. These factors shape their mental models for environmental risk management.
Area of Science:
- Environmental Management
- Corporate Social Responsibility
- Risk Perception
Background:
- Organizations face increasing pressure to address global environmental risks.
- Understanding managerial perspectives on climate change and biodiversity loss is crucial for effective environmental strategy.
- Varying levels of attention and priority are given to these risks by different managers.
Purpose of the Study:
- To investigate senior corporate managers' views on climate change and biodiversity loss.
- To understand the factors influencing the prioritization of global environmental risks.
- To develop a theoretical framework explaining managers' mental models of environmental risk.
Main Methods:
- In-depth interviews with 28 senior corporate managers in Canada.
- Grounded theory approach for data collection and analysis.
- Inclusion of managers with and without direct environmental responsibilities across various sectors, predominantly energy.
Main Results:
- Identified four key factors influencing managers' appraisal of environmental risk threat: salience, intrinsic value of nature, knowledge, and perceived resilience of nature.
- Identified four key factors influencing managers' view of response strategy appeal: avoidability, perceived costs and benefits, fairness and equity, and effectiveness.
- Highlighted the importance of decision-making time horizon in both risk appraisal and response strategy evaluation.
Conclusions:
- Managerial mental models of environmental risk are shaped by a complex interplay of cognitive, ethical, and practical considerations.
- Effective environmental risk management requires addressing how managers perceive threats and evaluate response strategies.
- Future strategies should consider the influence of time horizons on managerial decision-making regarding environmental issues.
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