The red queen and the environment: reconciling public regulation and business strategy

The red queen and the environment: reconciling public regulation and business strategy

Sagaard V., Madsen S.O. Business Strategy and the Environment, September 2007, Vol. 16 No. 6, Start page: 430, No. of pages: 12

Purpose – to report change in a Danish company’s corporate strategy induced by stricter environmental regulation. Design/methodology/approach – observes that the expected government/business confrontation arising from more stringent regulation has not occurred, and develops a theoretical model suggesting why conflict has not occurred, basing the model on case study of a fishmeal company, TripleNine. States that, following litigation against the company instigated by the regional authority, company/authority relations have been restored, traces development of TripleNine from a fisherman co-operative, characterizes the early organization as closed and TripleNine as open, notes pressure from customers as well as authorities for environmental performance improvement, and depicts relationships between TripleNine, and authorities, universities and an environmental network,pinpointing combining inspection and approval procedures as contributing to change to a collaborative relationship. Draws on other case studies, comments on the European Union’s best-available-techniques policy, and on introduction of environmentally-friendly techniques in other industries maintains these gave competitive advantage, and illustrates a 2×2 matrix postulating that improved economic and environmental performances lead to sustainable production,categorizing change in TripleNine’s strategy as evolutionary. Originality/value – demonstrates how combined authority and customer pressure, and change in the way regulation is applied, can change company behavior.ISSN: 0964-4733Reference: 36AY904DOI: 10.1002/bse.486

Keywords: Denmark, Environmental management, Fisheries, Government policy, Organizational behaviour, Regulations