Key Concepts 3 Flashcards
(45 cards)
Climate Change as a Critical Challenge
The conflict between economic growth and environmental protection is the primary issue corporations face, shifting the focus from “saving the planet” to transforming human consciousness
Corporate Responsibility (Wright & Nyberg, 2017) (FLN)
● Framing: Corporations frame climate change as compatible with business goals, often associating their image with positive environmental values while distancing themselves from harm.
● Localising: Translating global climate challenges into business-specific initiatives, assigning economic value to climate actions.
● Normalising: Embedding climate actions into daily operations while minimizing disruption to traditional business models
From Grand Challenge to Business as Usual (TFLSDPEF)
- Triggering Events: Climate-related crises and external critiques (from NGOs, media, etc.) push companies to respond to environmental concerns.
- Framing: Companies initially frame climate change as a business concern, focusing on risk management or opportunities. However, this framing is critiqued for distracting from core profitability goals.
- Localizing: Companies adapt climate initiatives into practical actions like:
○ Incorporation: Developing eco-friendly products or roles.
○ Commensuration: Turning actions into quantifiable metrics.
○ Proselytization: Promoting these actions internally and externally. - Splitting: Companies may engage in symbolic actions without meaningful implementation (e.g., greenwashing).
- Deterioration and Critique: Over time, financial pressures cause climate actions to be critiqued for their impact on profitability.
- Purification and Dilution: Companies scale back or reframe climate initiatives to focus on core business goals, abandoning or diluting environmental commitments.
- Embedding: Some companies delay the normalization of business-as-usual through temporary compromises but eventually revert due to market constraints.
- Fiduciary Duty: Managers are limited by their duty to prioritize shareholder value, restricting long-term integration of environmental concerns
Dissonance
The tension between corporate actions and external expectations about climate responsibility
Regulatory Risk
Potential consequences of carbon taxes or mandatory restrictions
Market Risk
The threat from competitors adopting green technologies
Reputational Risk
Public perception of environmental harm can damage brand image
Physical Risk
Climate-related disasters directly impact infrastructure
Corporate Environmentalism Critiques (Wright & Nyberg, 2017): Greenwashing
Presenting a false image of environmental responsibility to align with societal values, without genuine ecological efforts
Corporate Environmentalism Critiques (Wright & Nyberg, 2017): Capitalism’s Growth Imperative
Economic growth, driven by fossil fuels, is incompatible with radical decarbonization and climate change mitigation
Temporal Disconnect
Businesses have short-term profit objectives, while climate change requires long-term solutions
Complicity
Companies are often responsible for causing the issues they claim to address, making radical change difficult
Shareholder Value Synonymous with Egosystem
Prioritizing shareholder wealth over systemic environmental consequences, with externalities being disregarded
Externalities
Costs or benefits caused by an economic actor that do not directly affect the actor itself, often leading to environmental degradation
Polycentric Governance (Ostrom & Polanyi)
Multiple centers of decision-making working towards the common good, supporting sustainable resource use
Commons
Shared resources managed collectively for mutual benefit
Circular Economy Systems (Patala, Albareda, & Halme, 2022)
Systems where resources are reused, recycled, or remanufactured in a closed loop, involving collective action among businesses and stakeholders for sustainability
Systemic Collective Action
Cooperation between businesses and other stakeholders for sustainability through shared resource management
Closed-Loop Economic Systems
Resources are maintained and reused across multiple organizations, emphasizing collaboration to manage resources efficiently
Challenges in Circular Economy Systems (4)
● Lack of Perceived Value: Residual materials are often undervalued.
● Lack of Scale: Efficient systems require infrastructure to manage resources on a large scale.
● Lack of Resource Information: Limited sharing of leftover materials between companies.
● Lack of Governance Mechanisms: Public-sector involvement is needed to address environmental costs.
Rivalrous Goods
Physical resources (e.g., oil, food) that are depleted with use
Non-Rivalrous Goods
Digital resources or data that can be used by multiple people without depletion
Cosmolocalism
A combination of digital commons (open knowledge) and local production, emphasizing sustainability and local empowerment
Monopolization of Non-Rivalrous Goods
Companies like Google and Amazon dominate digital infrastructures, leading to “tech feudalism.”