Eco-Effective Greening Decisions and Rationalizations: The Case of Shell Renewables

• Published in: Organization & environment Vol. 21; no. 3; pp. 227 - 244
• Main Authors: Backer, Lise, Clark, Timothy S.
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA Sage Publications 01.09.2008; SAGE Publications; Sage; SAGE PUBLICATIONS, INC
• Subjects: Alternative energy sources; Business; Business structures; Case studies; Constructionism; Consumer goods; Decision Making; Decision making models; Decision theory; Ecology; Economic sociology; Electricity generation; Energy; Energy industry; Enterprises; Environmental economics; Environmental management; Environmental Policy; Environmental problems; Environmental programs; Garbage; Green businesses; Greening; Human ecology and demography; Markets; Oil companies; Organization theory; Production. Distribution. Advertising; Products; Recycling; Refuse; Renewable energy; Sociology; Sociology of economy and development; Sustainable construction; Sustainable development; Wastes; Netherlands; enacting markets; eco-effectiveness; eco-efficiency; garbage-can decision making; recycling-bin decision making; green energy; Decision Making; Energy; Ecology; Rationalization; Retraining
• ISSN: 1086-0266; 1552-7417
• DOI: 10.1177/1086026608321328

Drawing on a social constructionist perspective, the authors present insights into the business case for eco-effective greening of business, based on analysis of Royal Dutch Shell's 1997 establishment of Shell Renewables as its fifth core business. They apply organizational decision-making theory to suggest that Shell's new eco-effective renewable energy business came about in a process fitting the garbage-can decision-making model—a model more aptly named after a recycling bin, they also argue. In rationalizing the decision after it had been made, Shell leveraged its energy-industry networks to enact a market for its new eco-effective products and services. The article concludes with the authors' observations that eco-effective greening can be a business case-in-the-making, with the economic outcome of developing eco-effective products and services dependent on how new green markets are created and pursued.