Political approaches to sustainability

globalization

a process of intensification of cross-border social interactions due to declining costs of connecting distant locations through communication and the transfer of capital, goods, and people 

how does globalisation impact economic systems

• Global financial systems  

  • Trading globally  

  • More sustainable finance 

• International trade flows  

  • Environment – greenhouse gas emissions, renewable technologies 

  • Both positive and negative 

• Global value chains 

how does globalization impact environmental systems

• Global climate change 

• Cross-border pollution 

• Environmental issues related to economic specialization 

  • deforestation 

how does globalisation impact social systems

• Global flow of information 

• Global movement of people 

• Universal principles 

past political role of businesses

No international trade and foreign direct investments: clear division of labour between state and businesses 

• companies follow jurisdiction in their nation state

political role of businesses today

The previously clear division of labour between state and businesses has become blurred 

• States no longer have a power monopoly: multiple systems of jurisdictions (e.g., nation states & EU) & value communities (e.g., UN)  

• Weakening democratic control: national governments have less control over global production processes 

• Multinational corporations are not bound to one but navigate different legal systems  

• Cross-border issues: Many sustainability issues (e.g., climate change) transcend borders 

main issue and consequence of governance gaps

Main issue: Businesses operate in an un- and under-regulated global economy, with governments often unable (or unwilling) to uphold citizens’ basic rights.  

 

Consequence: The world is increasingly characterized by ‘governance gaps’, ‘occurring between the scope and impact of economic forces and actors, and the capacity of societies to manage their adverse consequences.

what 2 things are public goods

• non-rivalrous (one person’s use does not diminish the availability for others) 

• non-excludable (no one can be excluded from benefitting regardless of contributions to the provision of the good). E.g., clean air, road lights 

 

new political role of businesses

• Businesses are both economic and political actors –

• Many businesses, especially multinational corporations, contribute to addressing public goods and social issues (e.g., AIDS, malnutrition) or engage in self-regulation.  

• The greater political role of business has implications for corporate responsibility - with increased political influence comes responsibility  

how do businesses influence politics?

1. businesses participate in voluntary global governance

2. businesses try to influence national politics

3. businesses try to influence international politics

4. CEO activism