Social risks are now moving up on the agenda of risk management for corporates across the world, and especially for developing countries. This is because the marginalized and vulnerable sections of the society are also crucial stakeholders in the value chain of businesses. Companies are becoming proactive about environmental and social issues that expose them to risk. This they do by identifying and tracking such risks and by focusing on designing firm-wide responses that build business resilience.
What are social risks?
- Perceived/real negative impacts on, and threats to individuals, groups of individuals, communities, and societies from social changes triggered by development related activities and the actions of various stakeholders.
- Inclusive of and not exclusive to issues such as labour conditions, health impacts, demographic trends, environmental sustainability, political stability as well as impact on economic opportunities.
- Risks that result in an increase in poverty, inequality, dislocation of vulnerable sections of the society, loss of livelihood disruption, loss of social and communal harmony, the loss of human livelihood and life, and adversely affect the environment.
The objective of the report is to:
- bring the concept of social risk management to the forefront
- stimulate a constructive dialogue involving corporations and institutions
- present the different types of social risks and impact/ threats posed by them, in the Indian context
- present the need for a forward looking approach to social risk management, and the potential tools and methodologies available
- highlighting the role that the private sector has to play