Corporate social responsibility for natural disaster: a new method for organizational risk management

Abstract

One of the major challenges faced by global leaders and the citizens is the climate change. Climate Action is one of the Sustainable Development Goal (SDG) given by the United Nations (UN). The climate change has led to an unprecedent increase in the flood risk in Malaysia. The recent flood situation is an example for the increase in the magnitude of the natural disaster. In this scenario it is imperative to have a holistic plan to face this challenge. One of the key stakeholders who can help to counter this challenge is the private sector companies on the other hand, natural disasters might affect the sustainability of the organization as well. The relationship of corporate social responsibility to risk management is one area which is underexplored in the business and society literature. Therefore, this study proposes a conceptual model relating CSR for natural disaster for organizational risk management. The study is a qualitative study, which is a desk study and review of literature related to this area of research. The main contribution of this study will be the development of a fundamental framework for CSR in natural disaster for organizational risk management. If the companies realize the importance of CSR in disaster management for organizational risk management, they will be taking proactive measures to focus their CSR efforts on natural disasters. This will provide a win-win solution for the companies as well as the other stakeholders involved in the natural disaster management.