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Analysis and Determinants of Sustainability Policy Choice of Local Councils in Australia : a Test of Stakeholder Theory

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Analysis and Determinants of Sustainability Policy Choice of Local Councils in Australia : a Test of Stakeholder Theory Edith Cowan University Research Online Theses: Doctorates and Masters Theses 2013 Analysis and determinants of sustainability policy choice of local councils in Australia : a test of stakeholder theory Clive P. Oliver Edith Cowan University Follow this and additional works at: https://ro.ecu.edu.au/theses Part of the Political Science Commons Recommended Citation Oliver, C. P. (2013). Analysis and determinants of sustainability policy choice of local councils in Australia : a test of stakeholder theory. https://ro.ecu.edu.au/theses/700 This Thesis is posted at Research Online. https://ro.ecu.edu.au/theses/700 Edith Cowan University Copyright Warning You may print or download ONE copy of this document for the purpose of your own research or study. The University does not authorize you to copy, communicate or otherwise make available electronically to any other person any copyright material contained on this site. You are reminded of the following: Copyright owners are entitled to take legal action against persons who infringe their copyright. A reproduction of material that is protected by copyright may be a copyright infringement. A court may impose penalties and award damages in relation to offences and infringements relating to copyright material. Higher penalties may apply, and higher damages may be awarded, for offences and infringements involving the conversion of material into digital or electronic form. Analysis and determinants of sustainability policy choice of local councils in Australia: A test of stakeholder theory Clive Preston Oliver B.Bus; M.Acc This thesis is submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Faculty of Business and Law Edith Cowan University December 2013 i EDITH COWAN UNIVERSITY LIBRARY/ARCHIVES USE OF THESIS This copy is the property of Edith Cowan University. However the literary rights of the author must also be respected. If any passage from this thesis is quoted or closely paraphrased in a paper or written work prepared by the user, the source of the passage must be acknowledged in the work. If the user desires to publish a paper or written work containing passages copied or closely paraphrased from this thesis, which passages would in total constitute an infringing copy for the purposes of the Copyright Act, he or she must first obtain the written permission of the author to do so. ii ABSTRACT Since the early 1990’s, issues of sustainability involving community, government and industry have gained momentum, and the environment has become the focus of numerous studies, such as those undertaken by Young and Hayes (2002); Yuan (2001); Staley (2006); Mellahi and Wood (2004); Hezri and Hasan (2006); Dowse 2006; Wilmhurst and Frost (2000); and Qian, Burritt and Monroe (2010). Cotter and Hannan (1999, p.11) also discussed the impetus of a United Nations summit in 1992, known as the Earth Summit, which resulted in Local Agenda 21, a blueprint for action to achieve sustainable development. Global sustainability is currently a major focus for policies in both the public and private sectors. Local government in Australia is currently undergoing historic changes as a result of a major thrust to restructure through amalgamation, in order to improve efficiencies and effectiveness in local government. Amalgamations are considered necessary for the financial survival of local government, as there is growing evidence to suggest that too many small councils will not be financially viable in the future. Moreover, local government worldwide is now more accountable than ever before for sustainable policy choices and the impact of those policy choices on their communities. Sustainable policy choices of local councils worldwide will have an enormous economic and environmental impact on the planet. Previous studies into the effects of sustainability issues and their relationship to local councils have been carried out by Kloot and Martin (2001); O’Brien (2002); Reid (1999); Bulkeley (2000); and Tebbatt (2006). This empirical quantitative study examines the sustainability policy choices of local government Australia-wide, and looks specifically at the determinants of such choices in local government. It also investigates the influence of stakeholders on the sustainability policy choices of each local government, the results of which have the potential to affect society’s quality of life. Identifying stakeholders who influence sustainability policy choices is therefore of great importance for the future. All five hundred and fifty eight local Australian government entities listed by the Australian Local Government Association (ALGA) were invited to participate in this study. Data were gathered through the use of a structured questionnaire, and an iii analysis was undertaken to identify those stakeholders who influence the sustainability policies of Australian local government. This is the first research to examine all Australian local government entities to find out why they make the sustainability choices they do. To date, most studies relating to local government have been in areas of disclosure, such as those carried out by Royston (2001); Priest, Ng and Dolley (1999); and Piaseka (2006). The findings of this study support the assertion of Mitchell, Agle and Wood (1997), that stakeholder salience is positively related to the cumulative number of the three variable attributes of power, legitimacy and urgency. In addition, this study ranked stakeholders from one to eight according to the perceptions of local government CEOs. It is interesting to note that, of the listed stakeholders, government did not rank as number one. The results indicated that stakeholder influence on local government sustainability policy choices varied depending on local government size, location, and whether they were urban or rural according to their government classification. The researcher was surprised to learn that many councils did not know their own government classification. The study also revealed that local government took sustainability seriously in all its forms and applications. As in previous research, the CEO of each council was selected as the respondent for the questionnaire. It was discovered that many of the larger councils had specialist positions dealing with these issues. This study is significant because it contributes original research in the area of stakeholder influence on sustainability policy choices of local government in Australia. It is important for future sustainability studies to have an understanding of which stakeholders influence local government in making their sustainability policy choices. This study also clarifies the perceived salience of local government stakeholders from the perspective of Australian local government CEOs. Moreover, the study proves quite clearly that local government is not homogenous, and the potential exists for future studies to investigate the importance and consequence of heterogeneous local government in Australia and around the world. iv DECLARATION I certify that this thesis does not incorporate without acknowledgement any material previously submitted for a degree or diploma in any institution of higher education: and that to the best of my knowledge and belief it does not contain any material previously written by another person except where due reference is made in the text. ................................................................................. Clive Preston Oliver December 2013 v ACKNOWLEDGEMENTS The author wishes to thank all those individuals and educational institutions who have helped with this study. It could not have been successfully concluded without them. I thank all the local government for the data they generated. They allowed me the opportunity to further my own knowledge in the area of local government sustainability policy choice. Special thanks are given to Dr. Theo Christopher who suffered through all the writes and re-writes of the various chapters in this thesis. Without his guidance and constant support, this study would not have reached the final stage of submission. I also thank him for supporting me right up until his retirement. Thank you so much Theo, I have learned so much from you over the years, both as your student and also as your work colleague and friend. Many thanks are also given to Professor Malcolm Smith for his interest and advice during the construction of this study, finalising my thesis and ironing out those final wrinkles. Thank you Malcolm. Last but not least, to my daughter Sorrell and my son Zaran, who continue to believe in me no matter what I do. They just smile and think “there he goes again!” Without their love and support in my life there would be no purpose. .............................................................. Clive Preston Oliver December 2013 vi Ethical considerations The guidelines for ethical rules and regulations of Edith Cowan University, provided by the Human Research Ethics Committee were adhered to for all facets of this study. This study drew on primary data sources, in the form of structured questionnaires mailed to the Chief Executive Officers of each and every local council in Australia. vii TABLE OF CONTENTS TITLE PAGE i USE OF THESIS PAGE ii ABSTRACT iii DECLARATION v ACKNOWLEDGEMENTS vi ETHICAL CONSIDERATIONS vii TABLE OF CONTENTS viii LIST OF TABLES xiii LIST OF FIGURES xv CHAPTER ONE – INTRODUCTION 1 1.1 Motivation for this study 1 1.2 Significance of this study 4 1.3 Research questions 9 1.4 Thesis outline 9 1.5 Summary 10 CHAPTER TWO
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