Climate protection and economic prosperity often seem to be at opposite ends and discussed as if they are contradictory. This chapter endeavours to ask and answer the question: How can climate change prevention be reached without being harmful to the economy, and perhaps even fostering it? This question is analysed on a normative and conceptual level with direct implications for climate change prevention. The answers developed support the emergence of a global climate policy. This policy reflects the needs of ecological, entrepreneurial and economic as well as social sustainability. In essence, we suggest to auction emission rights globally and redistribute the proceeds per capita globally. The chapter also contains an exploration of how such payout can be administrated. We also propose to shift from emissions to ‘immission’ focus. Relocating the point of control upstream makes a global climate change policy more viable and the respective climate regime easier to enforce.
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André C. Presse and Falko Paetzold
Van V. Miller and Michael J. Pisani
Governance of corporate sustainability conduct presents a particularly burdensome challenge because it relies on voluntary codes of conduct, minus regulatory mandates. Two major codes are examined and found to be seriously deficient in terms of institutional legitimacy. To deal with this issue, this chapter proposes the use of sustainability science at the corporate level to provide usable knowledge for the governance of corporate sustainability conduct. The proposal, built around five key questions, is then illustrated with two descriptive cases that examine water usage by two large multinational corporations in India and the United States.
Simon J.D. Schillebeeckx, Mark Workman and Charles Dean
We review how scarcity of natural resources has been framed over time and propose a new frame that ties the availability of source resources to the capacity of sink resources to absorb negative externalities caused by resource extraction and use alongside a techno-economic, market and socio-political dimension. This new frame builds on and further develops the emerging construct of the resource nexus, which focuses on the interdependence between natural resources, ecosystems and social systems. We then focus on the question of what this new frame means for organizations that operate within a resource nexus ‘environment’, and reinterpret the meaning of dynamism, complexity and uncertainty within a natural environment context. We end this chapter with an exploration of what this means for management and suggest that developing anti-fragility, boosting flexibility and supporting openness and collective action will become important strategic considerations for those organizations that seek to thrive in the resource nexus.
Connie Van der Byl and Birgitte Grøgaard
The oil and gas industry is vital in the global economy. It is also a turbulent industry, characterized by market volatility and exogenous shocks. Yet, the oil and gas industry has largely been ignored in the management literature. In this chapter, we highlight some of the risks contributing to industry uncertainty and examine how firms adapt and develop resilience. Using the dynamic capabilities framework, we describe how successful firms develop capabilities for sensing, seizing and reconfiguring to mitigate the risks and capitalize on opportunities.
Roh Pin Lee, Ronny Reinhardt, Florian Keller, Sebastian Gurtner and Lutz Schiffer
Political and industrial decision makers have to promote technological innovations that pave the way for a low-carbon economy while ensuring the security and competitiveness of raw material supplies. In this complex decision-making environment, it is highly challenging to obtain a holistic and well-grounded overview of the wider institutional environment affecting industrial value chains. This chapter illustrates the managerial relevance and implications of a raw materials transition through a case study of the German chemical industry. Utilizing a cradle-to-gate approach, an integrated techno-economic-environmental evaluation of viable carbon resource alternatives for producing organic chemicals is conducted. The results illustrate the complexity and diversity of issues decision makers face. Additionally, qualitative factors are considered to illustrate motivators and risks that could influence decisions about whether to invest in alternative carbon feedstock. Finally, management theories and practices that could support strategic decision makers in resolving the conflicting demands of the institutional environment are discussed.
Bettina Bastian, Ulf Henning Richter and Christopher L. Tucci
The resource-based view of the firm (RBV) has emerged as a dominant perspective in strategic management, aiming to explain how unique firm resources and capabilities lead to sustained competitive advantage. In this book chapter, we apply the RBV to the context of finite natural resources and show that the RBV criteria do not suffice to understand performance differences given political risk resulting from the fixed location of natural resources and auto-consumption that drives natural resource depletion. Using a property rights perspective, we outline factors that enhance the explicatory power of the RBV for the extractive sector. We develop four scenarios that link natural resource endowment, depletion, political risk, firm performance, innovation and diversification.
Forough Zarea Fazlelahi and J. Henri Burgers
Transaction Cost Economics and the Resource-Based View are two traditional lenses to explain vertical integration decisions. However, these lenses face limitations in considering the persistence of such decisions over time. Drawing on imprinting theory, this chapter provides a theoretical link between the initial natural resource characteristics surrounding a firm’s birth and its choice and persistence of vertical integration. The main argument is that initial natural resource conditions have an imprinting effect on the vertical integration decisions made by firms in the extractive industries. A process through which imprinting happens is explained. We discuss several propositions concerning the kind of influence different initial natural resource characteristics have on firm decisions. Our main contribution is presenting a natural imprinting view that can explain the enduring effect of natural environment characteristics on firms’ ownership structures in the extractive industries.
Organizational Strategy, Behaviour and Dynamics
Edited by Gerard George and Simon J.D. Schillebeeckx
Gerard George, Simon J.D. Schillebeeckx and Teng Lit Liak
This chapter is a reprint from an editorial in the Academy of Management Journal. The article investigates how resources have been discussed and theorized over the last decades and finds that despite their omnipresence in economics, engineering and policy, managerial thought on natural resources is largely missing. Yet, important questions on how firms deal with scarcity of natural resources, how they are managed in a sustainable way, and how they inspire all kinds of organizational action abound. We discuss organizational, institutional and societal responses to scarcity and present ways to continue research on the ‘Grand Challenge’ of natural resources within the field of management. Finally, we present a conversation with Teng Lit Liak, a businessman, politician and environmental champion in Singapore on his perspectives on the natural environment.
Edited by Gerard George and Simon J.D. Schillebeeckx
The book aims to develop thought leadership on managing natural resources and stimulate the emergence of a community of management scholars that will advance research in this exciting area. We invited scholars from around the world to share conceptual and empirical research in which natural resources take centre stage and present 11 chapters that all contribute in important ways to both management theory and thinking as well as to the natural resource agenda. We explicitly draw the connection between the sustainable development goals of the United Nations and natural resources and explore how the chapters in this book address many of these goals in a way that husbands management theory with real impact.