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REFERENCE ONLY UNIVERSITY OF LONDON THESIS Degree py^ Year2toS Name of Author puev))S< ^ COPYRIGHT This is a thesis accepted for a Higher Degree of the University of London. It is an unpublished typescript and the copyright is held by the author. All persons consulting the thesis must read and abide by the Copyright Declaration below. COPYRIGHT DECLARATION I recognise that the copyright of the above-described thesis rests with the author and that no quotation from it or information derived from it may be published without the prior written consent of the author. LOANS Theses may not be lent to individuals, but the Senate House Library may lend a copy to approved libraries within the United Kingdom, for consultation solely on the premises of those libraries. Application should be made to: Inter-Library Loans, Senate House Library, Senate House, Malet Street, London WC1E 7HU. 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C:\Documents and Settings\lproctor\Local SettingsNTemporary Internet Files\OLK8\Copyright - thesis (2).doc CORPORATE GOVERNANCE OF THE ENVIRONMENT BRONWYN PURVIS DEPARTMENT OF GEOGRAPHY UNIVERSITY COLLEGE LONDON THIS THESIS IS SUBMITTED IN FULFILMENT OF THE REQUIREMENTS OF THE DEGREE OF ‘DOCTOR OF PHILOSOPHY' UNIVERSITY OF LONDON UMI Number: U592BB2 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U592332 Published by ProQuest LLC 2013. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 ABSTRACT The global pursuit of a more sustainable future cannot be achieved without the active engagement of the business community. The challenge for business has been to strategically engage with and embed environmental responsibility within their wider corporate governance; to create effective corporate governance of the environment. The assumption would appear to be, that we have already witnessed the construction of such governance, delivered through the attainment of a paradigmatic shift in corporate engagement with environmental issues. This thesis questions the validity of such an assumption, exploring what the reality of current corporate governance of the environment is, and the drivers which have shaped it. Through a dual strategy of web-based and questionnaire research, analysis is made of the FTSE 100 and 250 Index companies, the nature of their individual and aggregate strategising and attenuating corporate governance of the environment. The findings illustrate that far from having achieved a new paradigm of corporate environmental engagement, embodied through effective corporate governance of the environment, there exists significant levels of non engagement within UK business. Quantitatively and qualitatively, the nature of current corporate governance of the environment, indicates that stakeholder expectations of a new era of informed corporate environmental responsibility have not yet been met; there exists significant scope for developing current corporate governance in this context. Crucially, the findings also suggest for such companies, that in the absence of mandatory drivers for change, such a shift will not be forthcoming. This has important implications for the current, largely self-regulatory, policy approach prevailing in the UK. 2 ACKNOWLEDGEMENTS My thanks to the Economic and Social Research Council for their scholarship, Award NO.R00429834633, and the Department of Geography, University College London within which this doctoral research was situated. To the wonderful training ground that was ESRU and to my supervisor, Jacquie, in particular, many thanks. My sincere gratitude, to the FTSE 100 and FTSE250 Index companies who generously engaged with this research and without whom this thesis could not have been written. On a personal note: to my wonderful Mum and best friend, thank you for everything; to Gareth and Edell, thanks for all your invaluable support, belief and champagne!; and not least, to Simon, my long-suffering and fantastic husband, you have been a superstar. To our grad-room community: Rosie, Tamsin, Caz, Jason, Russell, Jamster and Nick, here’s to the Cava days! This thesis is dedicated to my Dad. 3 TABLE OF CONTENTS A bstract......................................................................................................................... 2 Acknowledgements ......................................................................................................3 Table o f C ontents .........................................................................................................4 List of Figures............................................................................................................... 9 Abbreviations and Acronyms ....................................................................................12 Chapter 1: Engaging the Business Community ..................................................... 15 Engagement .......................................................................................................... 16 Corporate Governance .......................................................................................... 18 Corporate Governance of the Environment (CGE)..............................................20 Defining Corporate Governance of the Environment (CGE) ...............................22 The Strategic Basis for Corporate Governance of the Environment ................... 23 Research Objectives .............................................................................................24 Research Approach ...............................................................................................26 Thesis Structure....................................................................................................29 Chapter 2: Conceptualising Corporate Governance of the Environment: Strategic Drivers and Attenuating Expectations .................................................... 33 Introduction...........................................................................................................33 Section 1: The Greening of Business.......................................................................34 Section 2: The Drivers for Change ........................................................................... 36 Section 3: Societal Expectation ................................................................................40 The Role of Science .............................................................................................40 The Role of Green Politics ................................................................................... 42 Organisational Influence ...................................................................................... 44 Section 4: Policy, Regulatory Drivers ...................................................................... 46 The Context ..........................................................................................................46 The Nature of Regulation of Business................................................................. 49 How Efficient is Regulation for CGE? .................................................................. 54 Benefits to Business.............................................................................................55 Section 5: Business Drivers.................................................................................... 59 Employees ........................................................................................................... 60 Financial Stakeholders: Shareholders and Investors .......................................... 62 Self Regulation by Business: Markets, Competition and Business Drivers 64 The Benefits of Self-Regulation ...........................................................................70 Qualifications to Self-Regulatory Approach ........................................................ 77 4 Section 6: Conclusion .............................................................................................. 78 Chapter 3: Realising Corporate Governance of the Environment ...................... 80 Introduction...........................................................................................................80 Precedence...........................................................................................................81