Hostname: page-component-76fb5796d-qxdb6 Total loading time: 0 Render date: 2024-04-25T14:30:52.766Z Has data issue: false hasContentIssue false
  • English
  • Français

The business – government nexus: Impact of government actions and legislation on business responses to climate change

Published online by Cambridge University Press:  03 December 2020

Sheela Sree Kumar Open the ORCID record for Sheela Sree Kumar [Opens in a new window] ,
Bobby Banerjee Open the ORCID record for Bobby Banerjee [Opens in a new window] ,
Fernanda de Paiva Duarte Open the ORCID record for Fernanda de Paiva Duarte [Opens in a new window]  and
Ann Dadich Open the ORCID record for Ann Dadich [Opens in a new window]
Sheela Sree Kumar*
Affiliation:
School of Business, Western Sydney University, Sydney, Australia
Bobby Banerjee
Affiliation:
The Business School, City, University of London, London, UK
Fernanda de Paiva Duarte
Affiliation:
School of Business, Western Sydney University, Sydney, Australia
Ann Dadich
Affiliation:
School of Business, Western Sydney University, Sydney, Australia
*
*Corresponding author. Email: s.sreekumar@westernsydney.edu.au
Get access Rights & Permissions [Opens in a new window]

Abstract

Australia has committed to reducing emissions under the Paris Agreement by 2030, in alignment with the United Nations' (UN) Sustainability Development Goal (SDG) climate action. This article investigates the responses of Australian high-emission businesses to Australian government action and legislation in relation to climate change, specifically the carbon tax, and how this knowledge can assist in delineating future carbon legislation. A qualitative study of the responses of 17 high-emission businesses and three industry associations to carbon legislation during the implementation of the carbon tax in Australia identified the use of resistive, reactive or cooperative strategies by the businesses. Issues related to carbon legislation identified by businesses included differences in time orientation, multiple regulations, political uncertainty, international positioning and the need for long-term and consolidated policies. Given these findings, this article argues that well-designed top-down legislative measures are necessary to steer businesses towards a carbon-neutral regime.

Keywords

Australiabusiness strategycarbon taxclimate changegovernment legislationwicked problems
Type
Research Article
Information
Journal of Management & Organization , Volume 26 , Special Issue 6: Wicked Problems and Sustainable Development Goals , November 2020 , pp. 952 - 974
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

ASX. (2011). ASX Energy and Environment markets. Retrieved from http://www.asx.com.au/products/about_energy_environment_markets.htmGoogle Scholar
Banerjee, S. (2001). Corporate environmental strategies and actions. Management Decision, 39(1), 36–44.CrossRefGoogle Scholar
Baxter, T. (2019). The emissions reduction fund was deeply flawed – and no rebranding will change this, opinion. The Guardian. Retrieved from https://www.theguardian.com/commentisfree/2019/feb/25/the-emissions-reduction-fund-was-deeply-flawed-and-no-rebranding-will-change-thisGoogle Scholar
Bebbington, J., & Larrinaga-Gonzalez, C. (2008). Carbon trading: Accounting and reporting issues. European Accounting Review, 17(4), 697–717.CrossRefGoogle Scholar
Bradford, J., & Fraser, E. D. G. (2008). Local authorities, climate change and small and medium enterprises: Identifying effective policy instruments to reduce energy use and carbon emissions. Corporate Social Responsibility and Environmental Management, 15(3), 156–172. doi: 10.1002/csr.151CrossRefGoogle Scholar
Brouhle, K., & Harrington, D. R. (2009). Firm strategy and the Canadian voluntary climate challenge and registry (VCR). Business Strategy & the Environment (John Wiley & Sons, Inc), 18, 360–379.CrossRefGoogle Scholar
Clean Energy Regulator. (2013). The NGER scheme. Retrieved from http://www.cleanenergyregulator.gov.au/NGER/Google Scholar
Clean Energy Regulator. (2016). Carbon pricing mechanism: About the mechanism. Retrieved from http://www.cleanenergyregulator.gov.au/Infohub/CPM/About-the-mechanismGoogle Scholar
Creswell, J. W. (2013). Qualitative inquiry and research design choosing among five approaches (3rd ed.). California, USA: Sage Publications.Google Scholar
Delmas, M., & Toffel, M. (2004). Stakeholders and environmental management practices: An institutional framework. Business Strategy & the Environment (John Wiley & Sons, Inc), 13, 209–222.CrossRefGoogle Scholar
Department of Climate Change. (2012). Australia's action on climate change. Retrieved from Canberra, ACT.Google Scholar
Department of Climate Change and Energy Efficiency. (2011). Australia's emissions. Retrieved from http://www.climatechange.gov.au/en/climate-change/emissions.aspxGoogle Scholar
Department of the Environment and Energy. (2015). Australia's 2030 climate change target, Canberra, ACT. Retrieved from http://www.environment.gov.au/climate-change/publications/factsheet-australias-2030-climate-change-targetGoogle Scholar
Department of the Environment and Energy. (2017). National Inventory Report 2017, Canberra, Australia. Retrieved from https://publications.industry.gov.au/publications/climate-change/system/files/resources/gas-group/national-inventory-report-2017-volume-1.pdfGoogle Scholar
Duarte, F. (2015). Barriers to sustainability: An exploratory study on perspectives from Brazilian organizations. Sustainable Development, 23(6), 425–434. doi:10.1002/sd.1603CrossRefGoogle Scholar
Engau, C., & Hoffmann, V. (2011). Strategizing in an unpredictable climate: Exploring corporate strategies to cope with regulatory uncertainty. Long Range Planning, 44(1), 42–63.CrossRefGoogle Scholar
Etzion, D. (2007). Research on organisations and the natural environment, 1992 – present: A review. Journal of Management, 33(4), 637–664.CrossRefGoogle Scholar
Fremeth, A. R., & Richter, B. K. (2011). Profiting from environmental regulatory uncertainty: Integrated strategies for competitive advantage. California Management Review, 54(1), 145–165.CrossRefGoogle Scholar
Griffiths, A., Haigh, N., & Rassias, J. (2007). A framework for understanding institutional governance systems and climate change: The case of Australia. European Management Journal, 25(6), 415–427.CrossRefGoogle Scholar
Hannam, P. (2017). ‘Bastard child’: Review of controversial emissions fund finds ‘significant risk’. The Sydney Morning Herald. Retrieved from https://www.smh.com.au/environment/climate-change/bastard-child-review-of-controversial-emissions-fund-finds-significant-risk-20171211-h02hbw.htmlGoogle Scholar
Hoffman, A., & Georg, S. (2012). A history of research on business and the natural environment: Conversations from the field. In Georg, S. & Hoffman, A. (Eds.), Business and the natural environment; critical perspectives on business and management (Vol. 1, pp. 1–58). Oxford, UK: Routledge.Google Scholar
IPCC. (2014). Climate change 2014: Impacts, adaptation, and vulnerability. Part A: Global and sectoral aspects. Retrieved from Cambridge, United Kingdom and New York, NY, USA: https://www.ipcc.ch/report/ar5/wg2/Google Scholar
Jones, C., & Levy, D. (2007). North American business strategies towards climate change. European Management Journal, 25(6), 428–440. doi: 10.1016/j.emj.2007.07.001CrossRefGoogle Scholar
Kavalski, E. (2011). From the cold war to global warming: Observing complexity in IR. Political Studies Review, 9(1), 1–12. doi: 10.1111/j.1478–9302.2010.00221.xCrossRefGoogle Scholar
Kolk, A. (2008). Developments in corporate responses to climate change in the past decade. In Hansjurgens, B. A. A. R. (Ed.), Climate change, sustainable development and risk: An economic and business view (pp. 1–10). New York: Physica Publishers.Google Scholar
Kolk, A., & Pinkse, J. (2007). Multinationals’ political activities on climate change. Business & Society, 46(2), 201–227.CrossRefGoogle Scholar
Kvale, S. (1996). Interviews: An introduction to qualitative research interviewing. Thousand Oaks, CA: Sage Publications.Google Scholar
Lazarus, R. J. (2010). Super wicked problems and climate change: Restraining the present to liberate the future. Environmental Law Reporter, 40(8), 10749–10756.Google Scholar
Levy, D. (2000). Applications and limitations of complexity theory in organization theory and strategy. In Rabin, J., Miller, G. J. and Hildreth, W. B. (Eds.), Handbook of strategic management (Second ed., pp. 67–87). New York: Marcel Dekker.CrossRefGoogle Scholar
Levy, D., & Egan, D. (2003). A Neo-Gramscian approach to corporate political strategy: Conflict and accommodation in the climate change negotiations*. Journal of Management Studies, 40(4), 803–829. doi: 10.1111/1467-6486.00361CrossRefGoogle Scholar
Levy, D., & Rothenberg, S. (2002). Heterogeneity and change in environmental strategy: Technological and political responses to climate change in the automobile industry. In Ventresca, A. H. A. M. (Ed.), Organizations, policy and the natural environment: Institutional and strategic perspectives (pp. 173–193). Stanford: Stanford University Press.Google Scholar
Mackay, B., & Munro, I. (2012). Information warfare and new organizational landscapes: An inquiry into the ExxonMobil–Greenpeace dispute over climate change. Organization Studies, 33(1), 1507–1536.CrossRefGoogle Scholar
MacKenzie, I. A. (2018). Australia's emissions reduction fund is almost empty. It shouldn't be refilled. Retrieved from Victoria, Australia: https://theconversation.com/australias-emissions-reduction-fund-is-almost-empty-it-shouldnt-be-refilled-92283Google Scholar
Millán, N. (2010). Turbulent climate for change. Building Operating Management, 57(6), 23–24, 26,28–29.Google Scholar
Ministry for the Environment. (2020). The transition to a low-emissions and climate-resilient Aotearoa New Zealand. Retrieved from https://www.mfe.govt.nz/climate-change/climate-change-and-government/climate-change-programme#programmeGoogle Scholar
Nachmany, M., Fankhauser, S., Setzer, J., & Averchenkova, A. (2017). Global trends in climate change legislation and litigation. Retrieved from London.Google Scholar
Northrop, M. (2004). Leading by example: Profitable corporate strategies and successful public policies for reducing greenhouse gas emissions. Widener Law Journal, 14, 21–80.Google Scholar
Nyberg, D., Spicer, A., & Wright, C. (2013). Incorporating citizens: Corporate political engagement with climate change in Australia. Organization, 20(3), 433–453. doi: 10.1177/1350508413478585CrossRefGoogle Scholar
Okereke, C. (2007). An exploration of motivations, drivers and barriers to carbon management. European Management Journal, 25(6), 475–486.CrossRefGoogle Scholar
Pearse, R. (2017). Pricing carbon in Australia: Contestation, the state and market failure (1st ed.). Milton: Taylor and Francis.CrossRefGoogle Scholar
Pinkse, J., & Kolk, A. (2010). Challenges and trade-offs in corporate innovation for climate change. Business Strategy & the Environment (John Wiley & Sons, Inc), 19(4), 261–272.Google Scholar
Power, S. (2018). Australia's climate safeguard mechanism Retrieved from Commonwealth of Australia: https://parlinfo.aph.gov.au/parlInfo/download/library/prspub/6369992/upload_binary/6369992.pdfGoogle Scholar
Rice, J., & Martin, N. (2016). Influencing climate change regulations: Examining responses from large-scale firms. Journal of Environmental Planning and Management, 59(1), 44–61. doi: 10.1080/09640568.2014.983220CrossRefGoogle Scholar
Sangle, S. (2011). Adoption of cleaner technology for climate proactivity: A technology–firm–stakeholder framework. Business Strategy and the Environment, 20(6), 365–378. doi: 10.1002/bse.692Google Scholar
Sree Kumar, S. (2019). Corporate strategies in response to climate change: A complexity based study of Australian businesses from the high emission industries. (Doctor of Philosophy Reasearch), Western Sydney University, Sydney, Australia. Retrieved from https://researchdirect.westernsydney.edu.au/islandora/object/uws%3A53271Google Scholar
Sullivan, R. (2009). The management of greenhouse gas emissions in large European companies. Corporate Social Responsibility and Environmental Management, 16(6), 301–309. doi: 10.1002/csr.187CrossRefGoogle Scholar
Talberg, A., Hui, S., & Loynes, K. (2016). Timeline of Australian climate change policy. Research Paper Series 2015–16, pp. 1–25. Retrieved from http://parlinfo.aph.gov.au/parlInfo/download/library/prspub/4590624/upload_binary/4590624.pdf;fileType=application/pdfGoogle Scholar
Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13–35. doi: 10.1525/cmr.2016.58.4.13CrossRefGoogle Scholar
UN. (2015). Transforming our world: The 2030 agenda for sustainable development. Retrieved from 4th Plenary Meeting, General Assembly: https://www.un.org/en/ga/search/view_doc.asp?symbol=A/RES/70/1Google Scholar
UNFCCC. (2015). Report of the Conference of the Parties on its twenty-first session, held in Paris from 30 November to 13 December 2015. Retrieved from http://unfccc.int/resource/docs/2015/cop21/eng/10a01.pdf#page=2Google Scholar
Webb, J. (2012). Climate change and society: The chimera of behaviour change technologies. Sociology, 46(1), 109–125. doi: 10.1177/0038038511419196CrossRefGoogle Scholar
Wittneben, B., & Kiyar, D. (2009). Climate change basics for managers. Management Decision, 47(7), 1122–1132.CrossRefGoogle Scholar
Wittneben, B., Okereke, C., Banerjee, S., & Levy, D. (2012). Climate change and the emergence of new organisational landscapes. Organization Studies, 33(11), 1431–1450.CrossRefGoogle Scholar
World bank. (2019). State and trends of carbon pricing. Retrieved from Washington DC.Google Scholar
Xynas, L. (2011). Climate change mitigation: Carbon tax – is it the better answer for Australia? Australian Tax Forum, 26(3), 339–395.Google Scholar