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An Inconvenient Truth: How Organizations Translate Climate Change into Business as Usual
Abstract
Climate change represents the grandest of challenges facing humanity. In the space of two centuries of industrial development, human civilization has changed the chemistry of the atmosphere and oceans, with devastating consequences. Business organizations are central to this challenge, in that they support the production of escalating greenhouse gas emissions but also offer innovative ways to decarbonize our economies. In this paper, we examine how businesses respond to climate change. Based on five in-depth case studies of major Australian corporations over a 10-year period (2005–2015), we identify three key stages in the corporate translation of climate change: framing, localizing, and normalizing. We develop a grounded model that explains how the revolutionary import of grand challenges is converted into the mundane and comfortable concerns of “business as usual.” We find that critique is the major driver of this process by continuously revealing the tensions between the demands of the grand challenge and business imperatives. Our paper contributes to the literature on business and the natural environment by identifying how and why corporate environmental initiatives deteriorate over time. More specifically, we highlight the policy limitations of a reliance on business and market responses to the climate crisis.
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“Wright and Nyberg (2017) argue that the organizations in pursuit of their economic gains have in the past lobbied against carbon emissions initiatives and further delayed constructive action.”
From Climate change and COP26: Are digital technologies and information management part of the problem or the solution? An editorial reflection and call to action (2022) · cites this paper as Wright and Nyberg (2017)
In the citing paper
“These are clear indications that human influence on climate systems is clear and growing (Wright & Nyberg, 2017).”
From Climate change and COP26: Are digital technologies and information management part of the problem or the solution? An editorial reflection and call to action (2022) · cites this paper as Wright & Nyberg, 2017
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“Wright and Nyberg (2017) argue that the organizations in pursuit of their economic gains have in the past lobbied against carbon emissions initiatives and further delayed constructive action.”
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“Studies have addressed environmental outcomes, such as changes in toxic (Li & Zhou, 2017) and carbon emissions (Wright & Nyberg, 2017); green innovations (Lampikoski, Westerlund, Rajala, & Moller, 2014); social innovations (Mithani, 2017); and human resource outcomes, such as diversity and gender…”
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“Wright & Nyberg (2017) provide insights into how the “grand challenge” of climate change is subsumed under business as usual and results in nonradical changes in practices.”
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“Such logics rationalize global crises into “the mundane and comfortable concerns of ‘business as usual’” (Wright & Nyberg, 2017, p. 1633).”
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“Future researchers interested in examining factors that impact the degradation of the natural environment such as climate change (Ferraro et al., 2015; Howard-Grenville et al., 2014; Wright & Nyberg, 2017) would be well-served by studying the industry level of analysis.”
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“Research under the label has proliferated – from topics we would expect like climate change, pollution, and inequality (e.g., Mair et al., 2016; Porter et al., 2020; Wright and Nyberg, 2017), to less expected ones like sport and population health (Inoue et al., 2019).”
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“Physical climate change exposures are inherently forward-looking and long-term, surpassing typical managerial and business cycle time frames (Bansal et al., 2018; Carney, 2015; Flammer et al., 2021; Wright & Nyberg, 2017).”
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“Yet, businesses tend to respond to urgent and increasing ecological crises of global warming, extreme weather, rising sea levels, pollution, extinction and animal-borne diseases by sticking to a business-as-usual approach (Wright & Nyberg, 2017).”
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“In doing so, corporate commitments to tackle climate change were effectively diluted as climate initiatives were realigned ‘with the dominant market discourse of maximizing shareholder value’ (Wright and Nyberg, 2017: 1651).”
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Decision-Making Options for Managing Risk
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“Hence, the purpose of their activism may dilute when internal activists become absorbed into the corporate machinery (Wright & Nyberg, 2017).”
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MethodInfluentialParadox Peers: A Relational Approach to Navigating a Business–Society Paradox
Pamphile, V. D. (2021) · Academy of Management Journal · doi:10.5465/amj.2019.0616 · Cited by 73
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“Our findings suggest that having a lack of shareholder support might be one reason why managers are not willing to commit to climate change mitigation schemes (Wright & Nyberg, 2017).”
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Chatterjee, A., Ghosh, A., & Leca, B. L. (2022) · Academy of Management Journal · doi:10.5465/amj.2019.1348 · Cited by 78
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“Examples include the refugee crisis (Kornberger, Leixnering, Meyer, & Höllerer, 2018), natural disaster (Williams & Shepherd, 2016), global health (Vakili & McGahan, 2016), climate change (Wright & Nyberg, 2017) and inequality in rural India in our own study (Mair et al., 2016).”
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Pinkse, J., Demirel, P., & Marino, A. (2023) · Industry and Innovation · doi:10.1080/13662716.2023.2269112 · Cited by 68
“As net-zero innovation involves a significant departure from business-as-usual (Wright and Nyberg 2017), most firms’ internal knowledge will fall short of inducing the required levels and types of innovations.”
BackgroundInfluentialKnight, L. A., Tate, W. L., Carnovale, S., Mauro, C. D., Bals, L., Caniato, F. F. A., Gualandris, J., Johnsen, T., Matopoulos, A., Meehan, J., et al. (2022) · Journal of Purchasing and Supply Management · doi:10.1016/j.pursup.2022.100753 · Cited by 85
Gurmani, J. K., Khan, N. U., Khalique, M., Yasir, M. U., Obaid, A., & Sabri, N. A. A. (2021) · Sustainability · doi:10.3390/su13105594 · Cited by 86
Transnational corporations, biosphere stewardship, and sustainable futures
Österblom, H., Bebbington, J., Blasiak, R., Sobkowiak, M., & Folke, C. (2022) · Annual Review of Environment and Resources · doi:10.1146/annurev-environ-120120-052845 · Cited by 70
Forcadell, F. J., & Aracil, E. (2019) · Business Strategy & Development · doi:10.1002/bsd2.45 · Cited by 73
Clune, C., & O’Dwyer, B. (2020) · Accounting Organizations and Society · doi:10.1016/j.aos.2020.101130 · Cited by 76
Temporal Orientation and Corporate Social Responsibility: Global Evidence
Choi, J. J., Kim, J., & Shenkar, O. (2022) · Journal of Management Studies · doi:10.1111/joms.12861 · Cited by 70
Does national ESG performance curb greenhouse gas emissions?
Long, H., & Feng, G. (2024) · Innovation and Green Development · doi:10.1016/j.igd.2024.100138 · Cited by 80
Firms’ responses to the COVID-19 pandemic
Klöckner, M., Schmidt, C. G., Wagner, S. M., & Swink, M. L. (2023) · Journal of Business Research · doi:10.1016/j.jbusres.2023.113664 · Cited by 73
“To the contrary, other, even more scarce, global crises do not originate from a specific region at a discrete point of time, but are globally present, such as the climate crisis (e.g., Reid & Toffel, 2009; Wright & Nyberg, 2017) (i.e., cause contagion).”
Grimes, M. G., & Vogus, T. J. (2021) · Organization Theory · doi:10.1177/26317877211005780 · Cited by 73
“Wright and Nyberg (2017), for example, document how ostensibly revolutionary aims regarding climate change and corporate environmental practice often get diluted by more pragmatic concerns, thereby encouraging a reversion to business as usual.”
BackgroundFrom efficiency‐driven to low‐carbon operations management: Implications for labor productivity
Sartal, A., Méndez, M. R., & Vázquez, X. H. (2019) · Journal of Operations Management · doi:10.1002/joom.1060 · Cited by 64
Parida, S., Ananthram, S., Chan, C., & Brown, K. A. (2021) · Journal of Cleaner Production · doi:10.1016/j.jclepro.2021.129764 · Cited by 64
Carbon neutrality: Operations management research opportunities
Zhang, Q., Wong, C. W. Y., & Klassen, R. D. (2024) · Journal of Operations Management · doi:10.1002/joom.1303 · Cited by 66
The carbon footprint of a knowledge organization and emission scenarios for a post-COVID-19 world
Geneidy, S. E., Baumeister, S., Govigli, V. M., Orfanidou, T., & Wallius, V. (2021) · Environmental Impact Assessment Review · doi:10.1016/j.eiar.2021.106645 · Cited by 72
“Wright and Nyberg (2017) see a central role for organizations, in particular.”
Strategic Responses to Grand Challenges: Why and How Corporations Build Community Resilience
Hamann, R., Makaula, L., Ziervogel, G., Shearing, C. D., & Zhang, A. L. (2019) · Journal of Business Ethics · doi:10.1007/s10551-019-04345-y · Cited by 70
The Role of Share Repurchases for Firms’ Social and Environmental Sustainability
Vaupel, M., Bendig, D., Fischer, D., & Brettel, M. (2022) · Journal of Business Ethics · doi:10.1007/s10551-022-05076-3 · Cited by 61
“Greenwashing occurs if “initiatives merely provide the appearance of environmental benefit” (Wright & Nyberg, 2017, p. 1635).”
BackgroundCorvellec, H., & Stål, H. I. (2019) · Scandinavian Journal of Management · doi:10.1016/j.scaman.2019.03.002 · Cited by 61
Schüßler, E., Lohmeyer, N., & Ashwin, S. (2022) · Academy of Management Journal · doi:10.5465/amj.2020.1614 · Cited by 60
Whyte, J., & Mottee, L. (2022) · International Journal of Project Management · doi:10.1016/j.ijproman.2022.10.007 · Cited by 55
Tailor-to-Target: Configuring Collaborative Shareholder Engagements on Climate Change
Slager, R. C., Chuah, K., Gond, J., Furnari, S., & Homanen, M. (2023) · Management Science · doi:10.1287/mnsc.2023.4806 · Cited by 59
Corporations and climate change: An overview
Wright, C., & Nyberg, D. (2024) · Wiley Interdisciplinary Reviews Climate Change · doi:10.1002/wcc.919 · Cited by 59
“One key avenue of corporate attention in responding to the climate challenge was improved eco-efficiency as a means of not only reducing a corporation's carbon footprint but also improving productivity and profitability (Dauvergne & Lister, 2013; Esty & Winston, 2006).”
InfluentialSelf-citationBrown, I. M. (2020) · Environmental Science & Policy · doi:10.1016/j.envsci.2020.02.013 · Cited by 59
“Growth in such schemes has, however, stimulated concerns regarding ‘greenwashing’, implying implementation is mainly symbolic and not robust enough to deliver timely decarbonisation (e.g. Polonsky et al., 2010; Wright and Nyberg, 2017).”
BackgroundMeasuring corporate Paris Compliance using a strict science-based approach
Rekker, S. A. C., Ives, M. C., Wade, B., Webb, L., & Greig, C. R. (2022) · Nature Communications · doi:10.1038/s41467-022-31143-4 · Cited by 58
Metadata
- Authors
- Wright, C., & Nyberg, D.
- Affiliations
- The University of Sydney (AU)
- University of Newcastle Australia (AU)
- Venue
- Academy of Management Journal
- Publisher
- Academy of Management
- Published
- 2017-10
- Volume
- 60
- Issue
- 5
- Pages
- 1633-1661
- ISSN
- 0001-4273 (ISSN-L)
- 1948-0989
- OpenAlex
- W2549987064
- Semantic Scholar
- f20571a311cc9d7c403c5b9b4f78e7152df3c73f
- Cited by
- 722
- References
- 111
- Citations by year
- 2026: 106 · 2025: 114 · 2024: 96 · 2023: 102 · 2022: 96 · 2021: 63 · 2020: 65 · 2019: 55 · 2018: 17 · 2017: 7
- FWCI
- 54.66
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Academy of Management Journal (publishedVersion)
- Figshare (submittedVersion)
- Malmö University Publications (Malmö University) (submittedVersion)
- NOVA (University of Newcastle Australia) (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management and Organizational Studies
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Corporate Social Responsibility and Sustainability
- Keywords
- climate change, corporate climate action, business as usual, corporate environmental initiatives, framing, localization, normalization, societal challenges, critique, greenhouse gas emissions, decarbonization, Australian firms, corporate environmental policy
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