환경위험과 기업성과, 그리고 경영전략

Korea, a small open economy country with a large amount of carbon emissions, is one of the countries with the greatest concern about environmental problems amid the global trend of placing importance on the environment after the COVID-19 pandemic. Accordingly, for several years, the Korean government has declared ‘Carbon Neutral 2050’ in order to transit to a low-energy, low-carbon economic structure that meets global standards, and has implemented policies such as promoting investment in eco-friendly facilities. One of the specific policies is the ‘Greenhouse Gas and Energy Target Management System’, which regulates the greenhouse gas emissions of firms. The key point of this system is to designate firms to manage goals in national greenhouse gas emissions by saving energy and improving energy efficiency to achieve the target. Firms selected for management can emit greenhouse gas within the level permitted by the government, and if they fail to comply, they will be subject to administrative sanctions. Therefore, firms with high greenhouse gas emissions or energy consumption are at high environmental risks, including sanctions-related costs, reduced profits, and reputational damages. Previous studies have also reported that environmental risk caused by inefficient management have a negative impact on firm performance. Further, I focus on the moderating effect of business strategy. This study examines whether the negative effect of environmental risk on firm performance is mitigated in prospector that pursue innovation from a long-term perspective, rather than defender that are interested in generating profits by minimizing production costs from a short-term perspective. This study finds that the negative effect of environmental risk on firm performance is weaker in firms with prospector strategy than defender strategy. This finding means that the negative effect of environmental risk on firm performance is differentiated according to the business strategy that represents the policy for achieving the corporate goal. This study sheds the role of business strategy that firms can select while environmental risks affecting firm performance. Based on this, I suggest the implication that firms’ stakeholders should consider a strategy that incorporates the characteristics of CEO (Chief Executive Officer) when evaluating firms’ environmental risks.