Environmental responsibility and changing power dynamics

Abstract

As an increasing number of firms seek to become more environmentally responsible, they discover that their relationships with key stakeholders are subject to fundamental change. This changing power dynamic results in shifting resource dependencies, casting a shadow of realpolitik on an area typically characterised by cooperation, 'green-ness', and social responsibility. Using the resource dependence theory as a foundation, this article seeks to develop a framework explaining the changing power networks among firms attempting to increase their level of environmental responsibility. Emphasis is placed on the focal firm's suppliers and regulators, since they play key roles for the changing firm.