NGOs Challenge RWE on Coal Withdrawal RWE AG is a large Germany-based electric utility in Europe with ancillary operatio

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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. Of the various strategies being pursued by the
NGOs, which do you think are most likely to be persuasive on RWE?
(maximum 40 words)