IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v130y2015i2p375-387.html
   My bibliography  Save this article

The Role of the Private Sector in Global Climate and Energy Governance

Author

Listed:
  • José Andrade
  • José Puppim de Oliveira

Abstract

The private sector plays an active role in implementation of mechanisms concerning the mitigation of climate change. In spite of that, the corporate actors play a limited direct role in international arenas when it comes to negotiating the design of climate and energy regime. The climate and energy governance in the United Nations system remains mostly state-centric, but the active participation of corporate actors in negotiation of climate and energy regimes is essential to increase the effectiveness of their governance. Business is not just a subject of a regulatory climate and energy imposed by the state; rather, business is an intrinsic part of the fabric of climate and energy governance, as “rule-maker,” particularly in the many voluntary regimes. However, the architecture in place should guarantee that the private sector does not highjack the decisions and its positions are balanced by other non-governmental actors in the process. This article analyzes the role that the private sector can play in the global climate and energy governance. The private sector does not only play a “rule taker” role in the climate change and energy regime. Indeed, they are not passive observers as they influence through indirect means. The results suggest that the private sector is able to play a key role in global climate and energy governance based on the principle of multi-stakeholder participation in global decision-making, but the architecture should be able to balance the goods and bads of private direct influence in international regimes. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • José Andrade & José Puppim de Oliveira, 2015. "The Role of the Private Sector in Global Climate and Energy Governance," Journal of Business Ethics, Springer, vol. 130(2), pages 375-387, August.
    • Handle: RePEc:kap:jbuset:v:130:y:2015:i:2:p:375-387
    DOI: 10.1007/s10551-014-2235-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10551-014-2235-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-014-2235-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jennifer Clapp, 2005. "Global Environmental Governance for Corporate Responsibility and Accountability," Global Environmental Politics, MIT Press, vol. 5(3), pages 23-34, August.
    2. Robert Falkner, 2003. "Private Environmental Governance and International Relations: Exploring the Links," Global Environmental Politics, MIT Press, vol. 3(2), pages 72-87, May.
    3. Andreas Rasche & Dorothea Baur & Mariëtte Huijstee & Stephen Ladek & Jayanthi Naidu & Cecilia Perla & Esther Schouten & Michael Valente & Mingrui Zhang, 2008. "Corporations as Political Actors – A Report on the First Swiss Master Class in Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 80(2), pages 151-173, June.
    4. Jose-Manuel Prado-Lorenzo & Isabel-Maria Garcia-Sanchez, 2010. "The Role of the Board of Directors in Disseminating Relevant Information on Greenhouse Gases," Journal of Business Ethics, Springer, vol. 97(3), pages 391-424, December.
    5. Burkard Eberlein & Dirk Matten, 2009. "Business Responses to Climate Change Regulation in Canada and Germany: Lessons for MNCs from Emerging Economies," Journal of Business Ethics, Springer, vol. 86(2), pages 241-255, March.
    6. Levy, David L. & Kolk, Ans, 2002. "Strategic Responses to Global Climate Change: Conflicting Pressures on Multinationals in the Oil Industry," Business and Politics, Cambridge University Press, vol. 4(3), pages 275-300, November.
    7. Cedric Dawkins & John Fraas, 2011. "Coming Clean: The Impact of Environmental Performance and Visibility on Corporate Climate Change Disclosure," Journal of Business Ethics, Springer, vol. 100(2), pages 303-322, May.
    8. Levy David L. & Kolk Ans, 2002. "Strategic Responses to Global Climate Change: Conflicting Pressures on Multinationals in the Oil Industry," Business and Politics, De Gruyter, vol. 4(3), pages 1-27, November.
    9. Jennifer Clapp & Peter Dauvergne, 2005. "Paths to a Green World: The Political Economy of the Global Environment," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532719, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shiro Hori & Sachi Syugyo, 2020. "The function of international business frameworks for governing companies’ climate change-related actions toward the 2050 goals," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(3), pages 541-557, September.
    2. Kealy, Tony, 2017. "Stakeholder outcomes in a wind turbine investment; is the Irish energy policy effective in reducing GHG emissions by promoting small-scale embedded turbines in SME's?," Renewable Energy, Elsevier, vol. 101(C), pages 1157-1168.
    3. Ebiyon Idundun & Andrew S. Hursthouse & Iain McLellan, 2021. "Carbon Management in UK Higher Education Institutions: An Overview," Sustainability, MDPI, vol. 13(19), pages 1-16, September.
    4. Barbara Kump, 2021. "When do threats mobilize managers for organizational change toward sustainability? An environmental belief model," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2713-2726, July.
    5. Jose de Oliveira & Celio Andrade, 2016. "The political economy of clean energy transitions at sub-national level: Understanding the role of international climate regimes in energy policy in two Brazilian states," WIDER Working Paper Series 050, World Institute for Development Economic Research (UNU-WIDER).
    6. Janusz Reichel & Agata Rudnicka & Błażej Socha, 2023. "Energy Poverty—Do Energy Companies Care? Study Results from European Energy Companies," Energies, MDPI, vol. 16(18), pages 1-15, September.
    7. Ye, Wei & Chaiyapa, Warathida, 2024. "Impact of governance on resilience in the energy transition. An analysis of China and Germany," Utilities Policy, Elsevier, vol. 87(C).
    8. Hyunju Shin & Alexander E. Ellinger & Helenka Hopkins Nolan & Tyler D. DeCoster & Forrest Lane, 2018. "An Assessment of the Association Between Renewable Energy Utilization and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 151(4), pages 1121-1138, September.
    9. Jayme Walenta, 2020. "Climate risk assessments and science‐based targets: A review of emerging private sector climate action tools," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(2), March.
    10. Jose A. Puppim de Oliveira & Celio Andrade, 2016. "The political economy of clean energy transitions at sub-national level: Understanding the role of international climate regimes in energy policy in two Brazilian states," WIDER Working Paper Series wp-2016-50, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samuel Tang & David Demeritt, 2018. "Climate Change and Mandatory Carbon Reporting: Impacts on Business Process and Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 437-455, May.
    2. Binh Hoang Duc & Khang Do Ba, 2017. "Business responses to climate change: strategies for reducing greenhouse gas emissions in Vietnam," Asia Pacific Business Review, Taylor & Francis Journals, vol. 23(4), pages 596-620, August.
    3. Breeda Comyns, 2016. "Determinants of GHG Reporting: An Analysis of Global Oil and Gas Companies," Journal of Business Ethics, Springer, vol. 136(2), pages 349-369, June.
    4. Konstantinos Evangelinos & Ioannis Nikolaou & Walter Leal Filho, 2015. "The Effects of Climate Change Policy on the Business Community: A Corporate Environmental Accounting Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 257-270, September.
    5. Jeremy Galbreath, 2011. "To What Extent is Business Responding to Climate Change? Evidence from a Global Wine Producer," Journal of Business Ethics, Springer, vol. 104(3), pages 421-432, December.
    6. Matthias Damert & Rupert J. Baumgartner, 2018. "Intra‐Sectoral Differences in Climate Change Strategies: Evidence from the Global Automotive Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 27(3), pages 265-281, March.
    7. Matthew P. Johnson & Theresa S. Rötzel & Brigitte Frank, 2023. "Beyond conventional corporate responses to climate change towards deep decarbonization: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 921-954, June.
    8. Zahra Borghei, 2021. "Carbon disclosure: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5255-5280, December.
    9. Martínez-Ferrero, Jennifer & Prado-Lorenzo, José Manuel & Fernández-Fernández, José Miguel, 2013. "Responsabilidad social corporativa vs. responsabilidad contable," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 16(1), pages 32-45.
    10. Matthias Damert & Rupert J. Baumgartner, 2018. "External Pressures or Internal Governance – What Determines the Extent of Corporate Responses to Climate Change?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 473-488, July.
    11. Glen Dowell & Thomas Lyon, 2024. "Beliefs Matter: Local Climate Concerns and Industrial Greenhouse Gas Emissions in the United States," Journal of Business Ethics, Springer, vol. 194(3), pages 609-632, October.
    12. Hao Tan, 2017. "Making impact through industry-focused research: An Asia Pacific perspective," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 487-503, September.
    13. Julia Hamprecht & Jan Schwarzkopf, 2014. "Subsidiary Initiatives in the Institutional Environment," Management International Review, Springer, vol. 54(5), pages 757-778, October.
    14. Christopher Durugbo & Joseph Amankwah‐Amoah, 2019. "Global sustainability under uncertainty: How do multinationals craft regulatory policies?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1500-1516, November.
    15. George Ferns & Kenneth Amaeshi & Aliette Lambert, 2019. "Drilling their Own Graves: How the European Oil and Gas Supermajors Avoid Sustainability Tensions Through Mythmaking," Journal of Business Ethics, Springer, vol. 158(1), pages 201-231, August.
    16. Agni Kalfagianni, 2014. "Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities," Journal of Business Ethics, Springer, vol. 122(2), pages 307-320, June.
    17. Wittneben, B.B.F., 2007. "The Clean Development Mechanism: Institutionalizing New Power Relations," ERIM Report Series Research in Management ERS-2007-004-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Dong Ding & Bin Liu & Millicent Chang, 2023. "Carbon Emissions and TCFD Aligned Climate-Related Information Disclosures," Journal of Business Ethics, Springer, vol. 182(4), pages 967-1001, February.
    19. Thomas A. Tsalis & Ioannis E. Nikolaou, 2017. "Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 826-843, September.
    20. Su-Yol Lee & Young-Hoon Kim, 2015. "Antecedents and Consequences of Firms’ Climate Change Management Practices: Stakeholder and Synergistic Approach," Sustainability, MDPI, vol. 7(11), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:130:y:2015:i:2:p:375-387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.