Risk governance as a way to improve corporate sustainability
There is a growing demand for companies to take their responsibility regarding sustainable business practices. They are key actors in changing the way we live towards a sustainable, just and prosperous society. But profit is still prioritized at the cost of sustainability too often, resulting in headlines on for instance oil spills, deforestation and exploitation of cheap labor. Dr. Steffie Vereijken – van den Bosch strongly believes risk governance is an effective way for companies to drive their corporate sustainability. She aims to pave the way for effective regulatory frameworks that include this overlooked aspect of business governance.
What does risk governance have to do with corporate sustainability?
Risk governance is a key aspect of sustainable business practices that has not yet received the attention it deserves. Effective risk governance helps companies to identify and manage the sustainability risks associated with their operations, to ensure they meet their sustainability goals and stakeholder expectations and to comply with regulatory (disclosure) requirements. By exploring how risk governance can drive corporate sustainability, my research aims to provide valuable insights for policymakers, business leaders, and others committed to fostering sustainable and transparent business practices.
Like many, I believe in the power of collective action
How did you discover this subject?
My journey began during my PhD project on the governance and disclosure of sustainability risks, when I recognized the urgency and complexity of the issue. Research on corporate sustainability requires in-depth (legal) knowledge and touches upon many different aspects and disciplines. This research therefore greatly benefits from my expertise and my multidisciplinary background in business law and economics. Moreover, sustainability is not just a professional interest – it has become a personal passion. Like many, I believe in the power of collective action where we all can – and should – contribute to the overall goal of a more sustainable and equal society. My research and personal interests are therefore perfectly aligned.
What have you found so far?
My research has shown that mandatory disclosure rules affect the so-called ‘laggards’, i.e. those companies that are lagging behind in terms of their corporate sustainability and disclosure practices. For a long time, the voluntary efforts of companies have fallen short as many companies still prioritize profit over sustainability, too often resulting in unsustainable business practices. Recent years have witnessed a shift from voluntary to mandatory legislation being introduced at both the EU and national level. It acts as a ‘stick’ for companies that pushes them to improve their governance practices. Moreover, my research highlights the importance of tailored legislation, accompanied by sufficient guidance for companies on how to integrate sustainability in their businesses and governance practices, to drive meaningful change in a particular business environment.
What do you hope to achieve?
Ideally, my Starting grant project forms the impetus for legislative action on corporate sustainability and transparency. Imagine a world where every company, regardless of size or sector, is accountable for its environmental and social impacts. Through my research, I aim to pave the way for strong and effective regulatory frameworks, contributing to a future where sustainable business practices prevail and leading to a fairer society for all.
Dr. Steffie Vereijken - van den Bosch’s project ‘Regulating and stimulating corporate sustainability from a risk governance perspective’ is supported with a Starting grant and forms part of one of Tilburg Law School’s four core themes: Connecting Organizations in a Sustainable Society.