The Mediating Role of CSR in the Relationship between ERM systems and corporate reputation.

A wide range of risks can lead companies into a crisis, where certain stakeholders fail to receive value or may even experience a negative impact. An enterprise risk management (ERM) system can minimise the likelihood that risks jeopardise corporate social responsibility (CSR) performance. ERM systems help companies to behave more responsibly and sustainably with each and every stakeholder. They also increase the likelihood of meeting stakeholder expectations, thereby enhancing corporate reputation. This paper analyses the relationship between ERM systems, CSR performance and corporate reputation. The analysis is based on a sample of Spanish companies over the period 2008 to 2015. The results confirm that ERM system quality is conducive to CSR performance. The results also reveal that ERM systems affect corporate reputation through their effect on CSR performance. Managers can link their risk management policies to CSR to achieve and maintain a sustainable distribution of value amongst stakeholders and thereby strengthen their firm's corporate reputation. [ABSTRACT FROM AUTHOR]