Tag: government

Towards a Realization of Sustainability Ambitions?

By Lars Thøger Christensen

Governments are increasingly being sued by citizens and NGOs for not living up to their sustainability ambitions.

Recently, for example, three German farmers along with Greenpeace arraigned Chancellor Angela Merkel’s government for failing to achieve its ambition to reduce Germany’s CO2 emission by 40 percent in 2020, as measured from 1990. Already last year, the government acknowledged that it would not be able to meet its goal. It expects to achieve a 32 percent reduction. The consequences for the farmers, the complainants argue, are dire in terms of long periods of drought and other extreme weather conditions that threaten to destroy their livelihood.

In other parts of the world – including USA, Peru, Colombia and Fiji – similar cases and complaints are arising. It is difficult not to sympathize with these complaints and their underlying concern for our shared planet.

>>It was therefore remarkable that the administrative court in Berlin rejected what was the first climate complaint against the German government.<<

The complainants, the court argued, have no basis for demanding a specific set of actions from the government whose climate protection program 2020 was described as a “political aspiration”. According to German media, the judge said that society needs to respect the executive power’s discretion and room for maneuvering. Understandably, this ruling has spawned lots of criticism.

Governments are currently not legally required to live up to their sustainability aspirations.

This case calls on us to discuss what it takes to make sure that sustainability aspirations are actually being fulfilled by governments as well as by corporations. First, however, we need to consider whether a different decision by the German court – a decision that backed the claims by the farmers and Greenpeace – would have ensured a faster and more certain goal fulfillment. In a short-term perspective, that is quite likely. Although such ruling probably would have been appealed, it would at the same time have applied immense pressure on the government to launch more intense climate initiatives here and now. The more wide-ranging effects of such ruling, however, might not have been in the interest of the sustainability agenda. 

What happens if governments and corporations are legally forced to walk their talk?

Without exonerating empty sustainability talk and lack of sufficient climate initiatives, it is important to acknowledge that governmental and corporate aspirations serve multiple functions in changing and improving existing practices. While sustainability aspirations may be used to impress and seduce voters and consumers, something that is often the case, they are simultaneously likely to shape expectations and mobilize stakeholders to apply pressure for action.

Here, the level of optimal pressure is crucial. If governments and corporations know that unfulfilled promises and aspirations will be met with damaging court cases that support their complainants, they will be less likely to announce ambitious goals, and more inclined to articulate ideals that they already, or almost already, live up to. In such cases, changes may happen slower than society may desire.

>>Conversely, lack of stakeholder pressure is likely to result in “aspirational inflation” or overbidding, thereby reducing the performative power of aspirational talk to instigate changes.<<

Under which conditions should we expect governments and corporations to live up to their own aspirations?

Obviously, the aspirations in question need to engage with salient social, political or environmental issues in order to attract external attention and interest. Most sustainability aspirations are likely to fulfill that criterion. 

At the same time, aspirations need to be bold and challenging in order to mobilize conflicting opinions and critical comments.

Without visionary idea(l)s and without critical attention and interest from stakeholders, aspirations are likely to be soon forgotten or perhaps ignored. Lofty organizational aspirations define a collective horizon of excellence that empowers stakeholders – internal as well as external – to expect and demand better practices. To ensure that the aspirations are taken seriously by all parties, they simultaneously need to be announced in public media of high status. Public announcement communicates the formal status of the ambitions to external audiences but simultaneously signals their authority and truth-value to organizational members. Hereby, they have the potential to stimulate both internal and external involvement and activism. Without such conditions, the German climate protection program 2020 might not even have reached 32 percent of CO2 reduction.

Aspirations need to be visionary, bold and public to mobilize pressure for action.

Obviously, the emphasis on consistency between words and action is important in forcing organizations to take their own words seriously. At the same time, such emphasis might breed a growing fear of criticism – a fear that can lead organizations to restrain their announcement of ambitions in the hope of escaping public attention and scrutiny. This risk is important to keep in mind when deciding how to apply pressure on governments and organizations to honor their own words.

Suggestions for further readings:

Christensen, L.T., Morsing, M., & Thyssen, O. (2013). CSR as aspirational talk. Organization, 20(3), 372-393.

Font, X., Elgammal, I., & Lamond, I. (2017). Greenhushing: the deliberate under communicating of sustainability practices by tourism businesses. Journal of Sustainable Tourism, 25(7), 1007-1023.

Girschik, V. (2018). Shared responsibility for societal problems: The role of internal activists in reframing corporate responsibility, Business & Society. https://doi.org/10.1177/0007650318789867

Haack, P., Schoeneborn. D., & Wickert, C. (2012). Talking the talk, moral entrapment, creeping commitment? Exploring narrative dynamics in corporate responsibility standardization. Organization Studies, 33(5-6), 815-845.

Kim, E-H., & Lyon, T. P. (2014). Greenwash vs. brownwash: Exaggeration and undue modesty in corporate sustainability disclosure. Organization Science, 26(3), 705-723.

About the Author

Lars Thøger Christensen is Professor of Communication and Organization at the Copenhagen Business School, Denmark

Photo by Ahmed Bibi on Unsplash

The Government of Business Responsibility

By Erin Leitheiser.

Governments play an important role in shaping the roles and responsibilities of business in society.

Promoting responsibility directly and indirectly

Whilst I have previously blogged about how business sometimes leads government in helping promote the public good, this in no way means that governments are not actively seeking to shape and promote responsible business conduct. Governments do this in a variety of ways, and frequently. As such, this post provides an overview of some of the notable policies put into place in just the last few months by governments world over, as well as some reflections about what this means for business responsibility.

Can companies be held liable for climate change?

According to a newly-filed suit, proponents hope that the answer will be “yes”. Following a 3-year investigation of Exxon Mobile, New York’s attorney general is suing the company not for its role in creating climate change (legal theories on these grounds have yet to gain much support) but for defrauding its shareholders by not following through on its promises to factor climate change risks – primarily regulatory and financial – into its business decisions.

Takeaway: Shareholders continue to represent a powerful avenue for legal action, and if successful, this case could break new ground on linking environmental and fiduciary responsibilities.

Everyday plastic objects pollute oceans and beaches.

Single-use plastics banned in Europe

The European Parliament voted for a sweeping ban on single-use plastics – such as straws, cotton swabs, plates and cutlery – due to come into force in 2021. Affected products have “valid alternatives” available and are estimated to represent more than 70% of the plastics polluting our oceans.

Takeaway: If business doesn’t move quickly enough to re-conceptualize products more sustainably, governments will increasingly exercise their power to exclude such products from the marketplace altogether.

Information Accessibility

In India, the Department of Telecommunications recently approved some of the strictest legislation regarding net neutrality, which protects Indians’ rights to have free and fair access to the internet. Providers will not be allowed to prioritize, promote, curtail, throttle or in any other way manipulate users’ access to content. In a de-evolution, the US recently repealed such protections for its residents. Google has increasingly come under fire for Dragonfly, it’s forthcoming censored search engine for the Chinese market.

Takeaway: The manipulation of citizens’ access to information is unethical, even if profitable.

California Leading the U.S. (and the world?)

Over the summer California established ambitious goals for 100% clean electricity and carbon neutrality by 2045. Last month, it became the first state to require publicly-traded companies to include women on the boards of directors. Now in October, the state has signed into law legislation requiring drug stores and hospitals to fund take-back programs to curb the improper disposal of needles and leftover prescription drugs which can lead to accidental poisonings and environmental harms.

Takeaway: State- or other non-federal level governments are sometimes the most nimble in their speed and vision for promoting business responsibility.

California paved the way to become a carbon neutral state.

NAFTA updated to promote sustainable forestry

Updates to NAFTA – the North American Free Trade Agreement – aim to crack down on illegal logging and promote sustainable forestry. In particular, it hopes to help address the deforestation of the Amazon – happening in large part due to demand by the NAFTA countries – by promoting sustainability within the logging industries of the U.S. and Canada.

Takeaway: By re-structuring the rules of the marketplace, governments can both address sustainability problems (e.g. deforestation) as well as promote more sustainable industry alternatives.

Updates to NAFTA against illegal logging and sustainable forestry.

What do businesses think of the ever-changing regulatory environment? While business is typically painted as anti-regulation, this is hardly a universal truth. Companies – particularly the more responsible ones – often want legislation. For example, Apple’s chief executive Time Cook recently spoke to the European Parliament where he warned against the weaponization of personal data, praised Europe’s new GDPR regulations, and called for similar (tougher) regulation in the U.S. as well. (Though it’s worth noting that companies may embrace or eschew responsibilities and legislation on a case-by-case basis; for example, Apple has just been hit with a 10 million Euro fine for its strategy of “planned obsolescence” of its phones).

Governments have and will continue to play an important role in shaping the roles, responsibilities and expectations of business in society.

Erin Leitheiser is a PhD Fellow in Corporate Social Responsibility and Sustainability at Copenhagen Business School. Her research interests revolve around the changing role and expectations of business in society. Prior to pursuing her PhD, she worked as a CSR manager in a U.S. Fortune-50 company, as well as a public policy consultant with a focus on convening and facilitating of multi-stakeholder initiatives. She is supported by the Velux Foundation and is on Twitter as @erinleit.

Photos by: Jason Blackeye on Unsplash, and from pixabay.