Implication of Global Warming on Organizational Leadership - Essay Example

Topic – Implication of Global Warming on Organizational Leadership Introduction 0003199649201 Although the twentieth – century is still young, recently a variety events and concerns have surfaced that pose as major challenge for contemporary business world. In recent years, climate change has developed from being a fringe concern within the corporate world, addressed primarily through a company’s corporate and social responsibility, to an increasingly central topic for strategic deliberation and decision – making by executives and investors around the globe. Climate changes issues are among the most urgent global challenges in international business arena. The international environment issue attracted much more attention from politics, civil society, the media and business because of its actual and potential impact. According to Pearson(2010,pg.17)“ The issue of climate change is characterized by uncertainty as to the (potential)impact on markets, technologies and organizations with companies helping to shape the future of climate change regimes through voluntary initiatives as well”. It involves issue around human – induced emissions, greenhouse gases and global warming. The emergence of concerns about global warming in the international policy setting in the early 1900s was accompanied by a varied reaction on the part of international firms. With wide spread industrialization, the environmental impact of fossil fuels has taken centre stage in an international debate over the phenomenon known as global warming. The global warming affects several regions of the world adversely and hence industries around the world are at a major threat from environment. The responsibilities of MNCs with regard to global warming are huge and a strategic move from leaders of international business would make much difference. The Concept of Global Warming The phrase global warming has become familiar to many people as one of the most important environmental issue of our day. Human activities of all kinds whether in industry, in the field , or concerned with transport or the home are resulting in emission of increasing quantities of gas, in particular carbon – did- oxide, into the atmosphere. Every year these emissions currently add to the carbon already present in the atmosphere carbon dioxide a further seven thousand million tones, much of which is likely to remain there for a hundred years or more. As per Maslin(2007,pg.12)“Burning of fossil fuel has already raised levels of atmospheric carbon – dioxide to the highest for the last 20 million years”. Because carbon dioxide is a good absorber of heat radiation coming from the earth’s surface, increased carbon dioxide acts like a blanket over the surface keeping it warmer than normal. With the increased temperature the amount of water vapor in the atmosphere also increases, providing more blanketing and causing it even warmer. An increase in global temperature will lead to global climate change. These climate changes impact both humans and natural eco –systems altering patterns of resource availability and affecting human livelihood and health. These impacts in their turn affect human development in all its aspects. Prediction of the future climate is surrounded with considerable uncertainty that arises from our imperfect knowledge of both of the science of climate change and of the future scale of human activities that are its causes. How Global warming is a challenge for organizations Most global change scientists probably live with the issue of climate change on a regular basis and have done so for some time. But for many organizations, it is a new issue, it competes with other for management attention, and it is not always easy to see what to do. The main challenge to the organizations is to stop carbon emission and switch to renewable source of energy which is environmental friendly. The organizations need to move to raw materials which are natural and bio – degradable which is a cost –intensive task. The challenge is unprecedented: to stabilize pollution by 2030 or even 2050, private organizations such as oil and gas producers that account for most of our greenhouse gases need to stop dumping them into the atmosphere, thus reducing the profit goals of executives and shareholder s and raising prices of consumers. As per Truett(2011)“As business leaders, we believe that the only sustainable future for our companies and for the globe is to build a robust, green, climate-resilient economy”. The prospects for greatly increased efficiency and renewable, non – polluting energies sources are distant and slim. Formal organizations, public and private are at the heart of this problem. It is the organization that does most of the polluting, not governments, politics or culture or economics or our psychology. Under the Kyoto treaty the wealthier nations of Europe and Japan have to stay within government limits for emitting greenhouse gases. In his book, Oberthur(2000,pg.13 )“ The government were the decisive player in the Kyoto process, as only they were competent to adopt the Kyoto Protocol”. This poses a great threat on organization as they have to revive their fuel options and cost of production. Implication of global warming on organizational leadership An organization has to face many challenges in its daily functioning and responding to the business threats is the main objective of leadership. There are different kinds of leadership practiced in an organization and styles of leadership practiced depend upon the challenges and contingencies faced by an organization. Some of the leadership styles are authoritarian, participative, delegative and transformational leadership. Authoritarian leadership is practiced where there is minimum time to take decision as the power is vested with the leader alone. According to Cherry(2010)“Authoritarian leadership is best applied to situations where there is little time for group decision-making or where the leader is the most knowledgeable member of the group”. Whereas, participative leadership allows the involvement of group members in decision making process. In delegative leadership, the decision making process is transferred to group members, provided that the members are highly qualified. And transformation leadership is where the leader changes according to the demands of the situation. Every leadership has its own advantages and disadvantages and the effect of the leadership depends upon the capability of the expertise and knowledge possessed by the people taking decision .In a global challenge like global warming, the decision need to be taken for long time period and the support of entire group of organizational members are essential. In the website (Oko,2009)“ Climate change demands tough, but transformational changes, especially when faced with choices between short-term and long-term allocation of resources”. It is participative and delegative leadership which is most beneficial in dealing with global warming issue as this considers the decisions of all group members. Transformation leadership is very effective in situation like Global warming where the leader can change their strategy and objective of business according to the demand of the situation. The different theories like Great man theory, contingent theory and situational theories are also applicable to combat the challenge of global warming issue on organizations. In case of Great man theory the leader is assumed to be a hero and poses as a military leader in order to fight the situation. A heroic leader knows to make best of the situation and take action to alter the business practice to sustain in business environment. With regard to contingent theory, the leader assesses different types of leadership style which can be applied on the challenge faced by organization. Global warming is a contingency as it leads to an environmental condition which is unpredictable and business needs to change its objective and strategies in compatible with ecological sustainability in mind. This theory does not recommend a particular type of leadership but rely on many variables related to global warming issue, leadership style and capability of the organizational staff. According to Donaldson(2001,pg 1) “The essence of contingency theory paradigms is that organizational effectiveness results from fitting characteristics of the organization, such as its structure, to contingencies that reflect the situation of the organization”. In the same manner situational theory directs the leader to choose the best possible action in regard to the situational variable. In case of Global warming, a situational theory recommends the leader to whether close the business or take action to convert business in to eco – friendly nature. Conclusion Nowadays organizational leaders are convinced that it is safer to go green. Organizations leaders always look for opportunities to gain advantage over their competitors, and the emerging concerns of global warming provide a unique opportunity for firms to leapfrog their rivals. The growing call for green products - such as organic foods, unbleached filters and natural cosmetics show that green goods are slowly making inroads globally. It has become fashionable for organizations to talk about their environmental friendly measures. And organization which lack behind will fall out of the global business competition. However, organizations face the dilemma of allocating scarce resources to an issue that requires huge sum of money, while the payoff is undefined and results may not be seen for decades. Conceptually, corporate environmentalism makes sense, but the short term orientation of the companies forces the issue of global warming to the back stage. International marketing and business scholars can make a substantial contribution by developing conceptual models of climate change from international perspective. Some organizations have adopted the Corporate Social Responsibility strategy to face the challenge of Global warming. As per Smith (2010,pg. 125)“Although it is critical to embed CSR management within the organization, it is long and exacting task requiring specific competencies”. The leaders of an organization should perceive sustainable development as a way to further a cultural of social and environmental responsibility and link it to new commercial services, new business models and enhanced corporate performance. Bibliography Cherry,K. 2010. Lewins Leadership Styles. [ONLINE] Available at: http://psychology.about.com/od/leadership/a/leadstyles.htm. [Accessed 10 January 2012] Donaldson, L, 2001. The contingency theory of organizations. 1st ed. California: Sage Publications Ltd.. Maslin, M, 2007. Global Warming: Causes, Effects, and the Future. 1st ed. St. Paul: MBI Publishing Company. Oko, M. 2011. RELEASE: Climate Change Demands New Decision-Making Strategies by National Leaders. [ONLINE] Available at: http://www.wri.org/press/2011/10/release-climate-change-demands-new-decision-making-strategies-national-leaders. [Accessed 10 January 2012] Oberthur, S, 2000. The Kyoto Protocol: international climate policy for the 21st century. 1st ed. New York: Springer - Verlag. Pearson, C.S, 2010. Economics and the Challenge of Global Warming. 1st ed. Cambridge: Cambridge University Press .Smith, N.C, 2010. Global Challenges in Responsible Business. 1st ed. Cambridge: Cambridge University Press. Truett,T, 2011. Global Business Leaders Urge "Effective" Climate Deal in Durban. [ONLINE] Available at: http://www.ens-newswire.com/ens/oct2011/2011-10-20-02.html. [Accessed 27 November 11]. Read More