The Role of Short-Termism and Uncertainty Avoidance in Organizational Inaction on Climate Change: A Multi-Level Framework. (February 2017)

• Record Type: Journal Article
• Authors: Slawinski, Natalie; Pinkse, Jonatan; Busch, Timo; Banerjee, Subhabrata Bobby
• Other Names: Hahn Tobias guest-editor.; Figge Frank guest-editor.; Aragón-Correa J. Alberto guest-editor.; Sharma Sanjay guest-editor.
• Is Part Of: Business and society. Volume 56:Number 2(2017)
• Page Start: 253
• Page End: 282
• Publication Date: 2017-02
• Subjects: climate change -- corporate sustainability -- short-termism -- uncertainty avoidance -- multi-level theory; Industries -- Social aspects -- Periodicals; Industrial sociology -- Periodicals; Business ethics -- Periodicals; 306.3
• DOI: 10.1177/0007650315576136
• Languages: English
• ISSNs: 0007-6503

Abstract

Despite increasing pressure to deal with climate change, firms have been slow to respond with effective action. This article presents a multi-level framework for a better understanding of why many firms are failing to reduce their absolute greenhouse gas emissions, which contribute to climate change. The concepts of short-termism and uncertainty avoidance from research in psychology, sociology, and organization theory can explain the phenomenon of organizational inaction on climate change. Antecedents related to short-termism and uncertainty avoidance reinforce one another at three levels—individual, organizational, and institutional—and result in organizational inaction on climate change. The article also discusses the implications of this multi-level framework for research on corporate sustainability.