Case #6. NGOs Challenge RWE on Coal Withdrawal RWE AG is a large Germany-based electric utility in Europe with ancillary

[answerhappygod]

Case #6. NGOs Challenge RWE on Coal
Withdrawal
RWE AG is a large Germany-based electric utility in Europe with
ancillary operations throughout the world (rwe.com). Over the past
decade RWE has made significant strides in shifting from a
hydrocarbon-based generation to renewables, including a significant
reduction in coal-fired generation. (See rwe.com sustainability
report) RWE has pledged to be free of coal-fired generation in
Europe by 2030. However, according to the NGO coalexit
(coalexit.org), as of the end of 2020, RWE still had over 14,000
Megwatts of installed coal-burning generating capacity,
constituting 41% of its total electrical generating capacity and
23% of its revenue. As a result, coalexit, reclaim finance
(reclaimfinance.org), ember (ember-climate.org), and other climate
change-focused NGOs are pressing RWE and other utilities to
accelerate the closing of their coal-fired plants.
Actors in the Case:
RWE, EU, and European National Governments, Media, Anti-Coal
NGOs, Coalexit, Reclaimfinance, Ember, Urgewald, Global Energy
Monitor
Financial Institution
Banks,Equity Investors,World Bank
SUPPORTING REFERENCES GIVEN IN THE CASE
STUDY:
RWE History of Electrical Generation
The following excerpts are from the RWE website:
https://www.rwe.com/en
Cutting other emissions: See https://www.rwe.com/en
sustainability report
EMBER: Focus on OECD Countries and Governments Worldwide: The
following are excerpts from the EMBER website:
(www.ember-climate.org
Urgewald: Focusing on Public Campaigning and the Media:
https://urgewald.org/english
STRATEGIES: Business Strategy for Dealing with
NGOs
The most effective business strategy for dealing with NGOs
begins with avoiding strategic surprise. This is most easily
accomplished by means of a careful monitoring of cultural and
social change, emerging social movements, and ongoing NGO
activities. Many firms accomplish this by simply maintaining
subscriptions to NGO publications and, wherever possible, direct
interaction with NGO leadership. The latter strategy--interaction
with NGOs--is not always an option, since many
NGOs (1) believe business cannot be trusted; (2) do not want to
reveal their plans; (3) believe their power is weakest in direct
negotiations with business; and (4) fear of losing their
credibility with other NGOs if they "break bread with the enemy."
Nevertheless, if it can be achieved the value of face-to-face
contact with NGO leaders is considerable. The scorecard on business
efforts to deal with NGOs since the late 1960s was abysmal to
start, but has improved in recent years as managers have learned
more about NGO agendas, strategies and tactics, and accepted that
they are inevitable factors in the business environment.
Having One's "Ducks in a Row": Many businesses in the past have
underestimated the professional technical knowledge of NGOs. Those
movements which have strong support in the middle and upper-middle
classes--e.g., the environmental, consumerism, and animal rights
movements--have been able to marshal highly knowledgeable
professional personnel to staff the NGOs and serve in various
voluntary capacities as expert witnesses and lobbyists in the
public policy process. Faced with formidable adversaries, business
managers have found it essential to have "all their ducks in a
row," viz., to have a strong, thoroughly researched, and,
supportable position. The days when a business could present a
poorly presented argument and carry the day, if they ever existed,
are surely past today. If nothing else, NGOs have forced business
to confront their plans and actions in detail before presenting
them publicly. This has had the advantage of leading business away
from policies and actions which could not stand the test of
scrutiny to which NGOs are certain to put them. In certain rare
instances, the business has been able to play an important role in
countermovements that develop in opposition to specific or general
social movements. In recent years a large number of
countermovements have developed in opposition to Climate
Change.
The Life Cycle of Social Movements: Social movements and NGOs
can be described as having a life-cycle similar to the life-cycle
of living organisms, or, in business experience, products. In the
early stages of growth, social movements and NGOs are often brought
into being by leaders who are agitators, and led by other leaders
who have charismatic qualities, sometimes focused on a very narrow
issue or set of issues. A good example would be the Union of
Concerned Scientists, which began in opposition to the spread of
nuclear weapons, but since has broadened its focus to a wide range
of issues with high scientific content. As they mature, social
movements and NGOs become more bureaucratic and conservative, and
their leadership needs shift to skills possessed by administrators
and statesmen. The challenge is to keep activist members and
financial supporters (both individual small contributors and
foundations), engaged. This often results in the NGO broadening its
focus well beyond its initial agenda. World Wildlife Fund is a good
example; it now deals with issues well beyond protecting
wildlife.
CASE QUESTIONS
1. How do the following see the social contract of RWE?
a. RWE
b. The NGOs
(maximum 40 words each)