Erin, You make some interesting observations. Thank you. Some thoughts.
I think there are tipping point in all things.
There is a mental blockage for people as individuals called cognitive dissonance. This can be described as the mental dilemma people feel when they realise their cognition (knowledge and understanding through thought, experience, and the senses) and there actions (actions that respond to a situation) are inconsistent or contradictory. This situation will remain in a state of homeostasis until an external proposition is presented that has the ability to 'TIP' them into action. So for individuals: personal experiences, beliefs, culture, stories learnt through childhood, friends, personal conviction, fear to act differently or be criticised or worse will all play against being brave to make a change that runs against everything. You have create a proposition that overcomes all these restraints.
And then there is the business community. Businesses are either relying on their past success to determine their future or are being driven by their shareholders, customers or the business environment,
However, for businesses there Strategic Dissonance: When a company's strategies, goals and actions are misaligned or contradictory, it leads to dissonance that creates barriers to performance (Wilkins & Ouchi, 1983) or adoption of an alternative set of goals or processes. To overcome this dissonance the gain must be of greater value than the perceived strategic constraints.
The climate challenge / crisis as a problem, and I suggest, it needs to personalised for the individual almost to create a risk that could disturb their personal physiological needs (Maslow) such as biological requirements for survival, e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep. If any of these requirements are potentially compromised, I suggest it will create a 'Tipping Point' and adoption of change.
For companies it's about survival, customer perception, aligning a sense of purpose and identity. Again if any of these (by no means an exhaustive list) are at risk this will also cause a 'Tipping Point'
The climate crisis is an enormous battle. There are many who want to change and are making changes quietly in the background. I know this because I have student projects assisting businesses to re-strategize. And for students they are presented with data and assignments that cause them to consider and re-evaluate their actions.
Erin - thanks for sharing your thinking. I think that you are hitting a nail on the head. As I ruminated on this piece I realised that perhaps a greater focus in society in the coming years should be on building out more of the new business / social models that employ new technology, solutions and ways of thinking, rather than attempting to upgrade / convert existing ones. Incumbents will never vote for change, or being asked to invest again - they have already, and their model works fine as is. Only by either (i) making it some financially disadvantageous, or (ii) changing the regulatory landscape and crowding out the incumbents, can real change happen eg. horse to car, phasing out coal (mining, power stations etc), adoption of the internet etc. Corporations are in the end led by people, and so will react in the same way that people do - approaching new developments with their existing frames of reference, worried about being a first mover, fear of failure etc. Time to focus more on building the new economy / society rather than trying to upgrade all of the old infrastructure (that will be slower and less likely to deliver the change we need). As a result, over time, like we saw in the 1800's and 1900's, we will leave relics behind that were not meant to be sustained.
Public corporations are unlikely to put the environment ahead of profit for a reason. The law governing the duty of directors (in every jurisdiction) requires it. Ask any corporate lawyer.
That law says simply, "The duty of directors is to act in the best interests of the corporation and its shareholders." There's no exception for times when doing so results in harm to the environment (or various other elements of the public interest (e.g., human rights, the public health and safety, the dignity of employees or the wellbeing of the communities in which the company operates). There should be.
This is relatively easy to accomplish. The possibility of making this change is aided by the fact that it is simple and the law that it changes is essentially the same everywhere. This makes is capable of becoming a topic for discussion among almost everyone. "Should corporations have the inherent right to cause severe harm to the environment (and other elements of the public interest) until governments are able to pass laws prohibiting it?"
Good thoughts, though I don’t see governments leading this shift anytime soon. Best path forward may be to build companies within the capitalist system that drive emissions reduction, waste reduction, etc. So we build within the system. But totally recognize that we can’t rely on billion-dollar corporations to lead the energy transition.
Erin, You make some interesting observations. Thank you. Some thoughts.
I think there are tipping point in all things.
There is a mental blockage for people as individuals called cognitive dissonance. This can be described as the mental dilemma people feel when they realise their cognition (knowledge and understanding through thought, experience, and the senses) and there actions (actions that respond to a situation) are inconsistent or contradictory. This situation will remain in a state of homeostasis until an external proposition is presented that has the ability to 'TIP' them into action. So for individuals: personal experiences, beliefs, culture, stories learnt through childhood, friends, personal conviction, fear to act differently or be criticised or worse will all play against being brave to make a change that runs against everything. You have create a proposition that overcomes all these restraints.
And then there is the business community. Businesses are either relying on their past success to determine their future or are being driven by their shareholders, customers or the business environment,
However, for businesses there Strategic Dissonance: When a company's strategies, goals and actions are misaligned or contradictory, it leads to dissonance that creates barriers to performance (Wilkins & Ouchi, 1983) or adoption of an alternative set of goals or processes. To overcome this dissonance the gain must be of greater value than the perceived strategic constraints.
The climate challenge / crisis as a problem, and I suggest, it needs to personalised for the individual almost to create a risk that could disturb their personal physiological needs (Maslow) such as biological requirements for survival, e.g., air, food, drink, shelter, clothing, warmth, sex, and sleep. If any of these requirements are potentially compromised, I suggest it will create a 'Tipping Point' and adoption of change.
For companies it's about survival, customer perception, aligning a sense of purpose and identity. Again if any of these (by no means an exhaustive list) are at risk this will also cause a 'Tipping Point'
The climate crisis is an enormous battle. There are many who want to change and are making changes quietly in the background. I know this because I have student projects assisting businesses to re-strategize. And for students they are presented with data and assignments that cause them to consider and re-evaluate their actions.
Much to be done.
Erin - thanks for sharing your thinking. I think that you are hitting a nail on the head. As I ruminated on this piece I realised that perhaps a greater focus in society in the coming years should be on building out more of the new business / social models that employ new technology, solutions and ways of thinking, rather than attempting to upgrade / convert existing ones. Incumbents will never vote for change, or being asked to invest again - they have already, and their model works fine as is. Only by either (i) making it some financially disadvantageous, or (ii) changing the regulatory landscape and crowding out the incumbents, can real change happen eg. horse to car, phasing out coal (mining, power stations etc), adoption of the internet etc. Corporations are in the end led by people, and so will react in the same way that people do - approaching new developments with their existing frames of reference, worried about being a first mover, fear of failure etc. Time to focus more on building the new economy / society rather than trying to upgrade all of the old infrastructure (that will be slower and less likely to deliver the change we need). As a result, over time, like we saw in the 1800's and 1900's, we will leave relics behind that were not meant to be sustained.
Public corporations are unlikely to put the environment ahead of profit for a reason. The law governing the duty of directors (in every jurisdiction) requires it. Ask any corporate lawyer.
That law says simply, "The duty of directors is to act in the best interests of the corporation and its shareholders." There's no exception for times when doing so results in harm to the environment (or various other elements of the public interest (e.g., human rights, the public health and safety, the dignity of employees or the wellbeing of the communities in which the company operates). There should be.
This is relatively easy to accomplish. The possibility of making this change is aided by the fact that it is simple and the law that it changes is essentially the same everywhere. This makes is capable of becoming a topic for discussion among almost everyone. "Should corporations have the inherent right to cause severe harm to the environment (and other elements of the public interest) until governments are able to pass laws prohibiting it?"
There's a lot to like about your essay, but it could be improved by talking to a good corporate lawyer. See www.codeforcorporatecitizenship.com. I'd be happy to assist. Bob Hinkley (rchinkley1711@gmail.com)
Good thoughts, though I don’t see governments leading this shift anytime soon. Best path forward may be to build companies within the capitalist system that drive emissions reduction, waste reduction, etc. So we build within the system. But totally recognize that we can’t rely on billion-dollar corporations to lead the energy transition.