Field-Configuring Events, and Change in Organizations and Institutional Fields by Hardy & Maguire - Article Example

Dis Field-configuring Events, and Change in Organizations Article Synopsis While conducting research on the specific dynamics where field-configuring events change institutional fields, the article, “Discourse, Field-Configuring Events, And Change in Organizations and Institutional Fields: Narratives of DDT and The Stockholm Convention” by Hardy and Maguire (2010) sought to establish the implications of these changes in organizations taking part in these fields. The study focused on the United Nations conference leading to the Stockholm Convention. This was an international treaty that established new global rules for the production, use, importation, exportation, release and disposal of persistent organic pollutants, among them the once banned DDT. Using the United Nations Stockholm Convention, the researchers analysed documents related to the DDT pesticide to draw their conclusions. The research provided evidence that considerable influence of the narratives by actors who either played part in the production, distribution, or consumption of texts related to the DDT. The study relied on the documented evidence from the various texts presented in the conference, related to the DDT issue. Findings from the research indicated that there were three different forms of discursive spaces within a text. Each of these had different rules and understanding regarding the most appropriate forms of text production, distribution and consumption. Different organizations responded to different narratives differently, especially with relation to the interpretation of the text. Features, facts and highlights from the article a. Contributions of the study The study makes a number of contributions 1. The researchers demonstrate how field configuring events generate multiple discursive spaces governed by different rules as well as the understanding of the text production, distribution and consumption. While text production concerns with the author and the type of text, text distribution focuses on the where, when and how texts distribution take place. On the other hand, consumption focuses on the target audience, people who may have access to the text and the ability of these people to act on the texts. 2. The second contribution focuses on the emergence of the texts as stakeholders produce, distribute, and consume texts at a field-configuring event. Three mechanisms that lead to field change include; The domination of a particular narrative at the conclusion of the field-configuring event of discursive spaces, bringing into existence new field level rules in most cases receive formal authority Organizations’ interpretation of new narratives bring into existence new organizational modifications Analysis of narratives by the participant organizations unearths new narrative elements, which results into new field-level understandings 3. Finally, the authors argue that an analysis of the narratives ion most cases lead to the identity construction of the organization. b. Characteristics of POPs It is worth noting that the resulting convention, argue hardy and Maguire (2010), established the current global rules related to the production, export, release, and disposal of POPs. Described as highly toxic substances, the POPS persist for long periods before degrading They travel for long distances through air and water They accumulate in the fatty tissues of human beings. c. Features of narratives that bring institutional change Hardy and Maguire (2010) argue that telling a story in itself does not bring organizational change. In fact, it has no influence, and if any, it is insignificant. According to them, narratives uniquely affect actors. Since narratives create a struggle between the advantaged and the disadvantaged, then, for such a narrative to effect change in institutions, it must have the following features; It must have the ability to displace the competing narratives with other versions of events or alternative versions of the future For a narrative to displace other texts, then “it must be taken up and restated in other texts” argue Hardy and Maguire (2010). d. Data collection and analysis As the research focused on the analysis of the various events that took place during the drafting of the law that sought to control the production, distribution and consumption of POPs, the researchers extensively relied on the documents available during the conference. They explored the data for evidence of discursive spaces generated at the end of the conference and came up with various findings and conclusions e. Findings and conclusions After the analysis of the various narratives, the researchers established that there existed differences in the nature with which organizations interpreted texts. Among the texts used in the analysis include; 1. The initial narrative was “DDT as evil threat” as used in the conference. Different participants had their own views in the evil of the DDT to the human populations. While some held that it had little effects on the short term, others believed that the long-term effects were more profound. 2. The counter narrative in the conference was “DDT as hero.” The various ways in which human beings used DDT made it a hero. Fighting various pests and lasting longer, some of the participants felt that this was the best way to cut on organizational costs. 3. The concluding narrative of the conference was “DDT as necessary evil.” They believed that although DDT was harmful to the people, its benefits, coupled with the disadvantages made it unavoidable. However, it was harmful, and as such, the conference favoured its ban. The researchers concluded that through discursive spaces, narratives could lead top organizational changes especially in the manner with which they respond to various narratives. Reflection on the article The article provides new knowledge on the influence of the text analysis in decision making. The researchers in a candid manner analysed the various narratives used in the Stockholm Convention. By considering the effects of discursive spaces in the conference by the various participants, they drew conclusions on the effects of the analysis of these texts on the decisions of the various individual stakeholders. It gives insights on the effects of the differences in the textual analysis. Differences in the interpretation of texts lead to the differences in the decisions assumed by organizations, and individuals too. The researchers established that organizations will analyse a text in different ways. Textual analysis, as I realized is one of the biggest determining factors on the kind of decisions both organizations and individuals come up with. In the study, it was only out of the participants’ joint textual analysis that they arrived at a single decision. This is the best decision making process. Through consulting, people avoid the differences in their decisions making process. Perception, personal bias and prejudice are the major contributing factors to the differences in the decisions organizations arrive at. Royal Dutch/ Shell in Nigeria The Relevant Stakeholders After discovering the pools of oil in the Dutch East Indies, Aeilko Jans Zijlker founded the Royal Dutch Company in 1890. However, subject to its significance, the Royal Dutch Company attracted interest from U.S-based Standard Oil Corporation and Zijlker (Paine & Moldoveanu, 2009). The company restricted the ownership of the company shares to invitees and engaged in a merger with U.K-based Shell Transport and Trading Company to form Royal Dutch/ Shell. Under the merger, the U.K-based Shell Transport and Trading Company owned 40% while the Royal Dutch Company based in Netherlands owned 60 % of the Royal Dutch/ Shell Groups’ stakes (Paine & Moldoveanu, 2009). These parent companies directly or indirectly own the shares in the Group Holding Companies where they receive dividends. Moreover, in 1937, Shell collaborated with British Petroleum (BP) and gained exclusive rights to explore oil in Nigeria. Through the Nigerian National Petroleum Corporation, the Nigerian government gained a 35 % stake in the company in 1973 (Paine & Moldoveanu, 2009). The Shell Petroleum Development Company of Nigeria Limited held the Shell’s share in the new joint venture. Furthermore, there are 295,000 shareholders of Royal Dutch and 270,000 shareholders of Shell Transport who are relevant stakeholders in the Group (Paine & Moldoveanu, 2009). Shell Petroleum N.V and the Shell Petroleum Company Limited own all the shares in the Service Companies, which include Shell Coal International Limited, Shell International B.V among others. Ethical Issues within the Case The operations of the Shell Petroleum Development Company of Nigeria Limited (SPDC) attracted various criticisms and presented key ethical issues. Notably, the Niger Delta is the hub of oil production where about 500,000 Ogoni people reside (Paine & Moldoveanu, 2009). However, the Ogoni people relied on fishing and farming despite living in the hub of oil production. As such, the Ogoni people lived in abject poverty and the Niger Delta had few hospitals, few jobs, and high rates of infant mortality (Paine & Moldoveanu, 2009). This caused great civil unrest between the Nigerian government and Ogoni civil rights activists. The Royal Dutch/Shell Corporation faced an ethical issue over its involvement, or lack of involvement, in the civil conflict. With a 60 % stake in the oil industry, the company had the capacity to manipulate the political landscape in Nigeria but it lacked that strategic approach. Moreover, Shell faced immense scrutiny and criticism in Europe by Greenpeace due to its inefficient environmental policy. Most specifically, the handling of the Brent Spar, which was a storage buoy of hazardous pesticides, raised ethical issues as the company sought to dispose the waste by sinking it (Paine & Moldoveanu, 2009). Indeed, this had an environmental impact on the human and ecological development of the Niger Delta where about 500, 000 Ogoni people relied on fishing and farming. Shell seemed to be misusing the lower class, and less advanced country and its natural resources (Paine & Moldoveanu, 2009). Poor leadership and lack of a strategic plan, which defined the Brent Spar incident, led to low turnovers, poor image, and serious boycotts in Europe and in the Niger Delta. Another ethical issue in the case involves the need for Multinational companies like Shell to retain basic rights. In this case, the company failed to share profits fairly, offer equitable wages, and violated most of the employees’ rights. As such, the company failed the ethical test of meeting the expectations of the Ogoni people and the entire nation. Ethical/Traditional Perspectives in the Case In this case, Royal Dutch/ Shell in Nigeria (A) were operating in a fragile state. There were prescriptive ethics for multinational companies in this case. Indeed, the case depicts how prescriptive ethics can influence a business strategy in an ethical dilemma. Ideally, Royal Dutch/ Shell in Nigeria had an obligation to meet the standards and expectations of Nigeria. However, the operations of the company derive environmental and human rights issues in the Niger Delta, which depict prescriptive ethics for multinational companies. Moreover, in the merger between Royal Dutch and Shell Transport and Trading, prescriptive ethics sufficed where each company had specific operations, own chairperson, and operating offices but reported to a Committee of Managing Directors (CMD) (Paine & Moldoveanu, 2009). However, the CMD chairman had immense powers which influenced the decision making process and hence the merger adopted the suggestion of MCKinsey & Company which allowed the parties to operate freely, diluted the powers of the CMD chairman thus enabling great autonomy and speed in decision making (Paine & Moldoveanu, 2009). Another ethical perspective revolves around the corporation’s need to maintain the basic rights of the resident population. In this case, we can derive an ethical perspective where the Company violates the Ogoni people Bill of rights and offers unequal wages for the employees. Recommendations I would recommend that the Royal Dutch/ Shell in Nigeria (A) practices better corporate social responsibility. This would be necessary in addressing the environmental and human right issues that derive ethical issues in the Niger Delta. Indeed, if Royal Dutch/ Shell in Nigeria (A) were practicing an effective corporate social responsibility, it would avoid numerous environmental criticisms from Greenpeace and resolve the numerous civil unrests by the Ogoni people. Moreover, I would recommend for the direct involvement of Shell into the happenings in the Ogoni Region and the approach of the Nigerian government towards this crisis. Indeed, the company should use its business power to manipulate the Nigerian government into establishing laws that will foster good governance and respect for human rights at the Niger Delta. This would solve the civil unrest between the Nigerian government and Ogoni civil rights activists. ReferenceS Hardy, C., & Maguire, S. (2010). Discourse, field-configuring events, and change in organizations and institutional fields: Narratives of DDT and the Stockholm Convention. Academy of Management Journal, 53(6), 1365-1392. Paine, L., & Moldoveanu, M. (2009). Royal Dutch/Shell in Nigeria (A). 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