National culture traits, especially higher power-distance, uncertainty avoidance and low trust, can negatively affect the development of an adequate informational architecture for risk management. The inadequate informational architecture open breaches for relevant governance voids in regard to risk management. Governance voids favors the opportunistic search for short-term financial results in disregard for operational risks, increasing untamed operational risks with consequences for workers safety and environmental damage. Research on 5 large Brazilian organizations confirm these findings.
Countries and organizations with high power distance cultures have higher number of labor and operational accidents. This research seeks to understand, empirically what causes this results and why adequate risk governance doesn´t evolve on those national contexts for more sustainable results.
Culture/trust/governance
Geert Hofstede (2001) for references on culture.
(Schoorman, Mayer and Davis 2007) on trust. (Fukuyama, 1995; North, 1990; Ostrom, 1990) on trust and development. Low-trust countries have relatively lower economic performance: (Beinhocker, 2006; Inglehart and Welzel; 2005). Lower trust has negative impact on productivity, competitiveness (Migueles and Zanini, 2021) and safety management (Zanini and Migueles, 2018) and on the evolution of cooperation (Ostrom, 1990) – for trust and performance.
Oliver Williamson (1996) for governance and opportunism.
Discourse analysis on 16 classrooms of executive education (total of 528 individuals/their papers/reports and teamwork)
5 In-depth interviews with each of positions: top executives, board members, safety middle managers and 15 focus-groups with shopfloor workers.
The qualitative investigation in 16 classrooms of executive education and 5 large Brazilian companies provides evidence that High power distance/ high uncertainty avoidance and low trust negatively affect the development of a reliable information architecture on risk management. The derived uncertainty regarding to risks (caused by the absence of a reliable information architecture) favors the opportunism of shareholders interested in short-term result. Sub investment increases risks for workers and environment.
Understanding the impact of national culture on risk governance is relevant to reduce the governance voids that allows for short-term opportunism in the search for maximum financial returns in disregard for risks for workers, surrounding communities and the environment.
Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. Sage publications.
Hämäläinen, P., Takala, J., & Saarela, K. L. (2006). Global estimates of occupational accidents. Safety science, 44(2), 137-156.
Gladwell, M. (2008). Outliers: the story of success. New York, New York: Back Bay Books.
Migueles, C.; Zanini, M.T. (2021). O Elo Perdido: Cultura, Produtividade e Competitividade. FGV Editora.