At the latest Refresher Programme talk held by ESADE Alumni in conjunction with ESADE Executive Education, Ángel Saz (PhD 07), associate professor in ESADE’s Department of General Management and Strategy and director of the ESADEgeo-Center for Global Economy and Geopolitics, examined the impact of globalisation on all players: international organisations, companies, citizens and states.
Professor Saz explained that today’s multinationals are increasingly affected by governmental policies, regulations, lobbying by activists and media scrutiny around the world. Market leadership is no longer enough.
''Businesses operate in both market and non-market environments'', said Ángel Saz. Market environments include corporate relations in which the market plays a part, such as relations with customers, suppliers, competitors, etc, whereas non-market environments include corporate relations with public and private entities in which the market is not involved (governments, regulatory bodies, NGOs, activists, the media, etc).
Professor Saz conducted an issues analysis, i.e. an examination of the complex non-market environment, by applying David Baron’s 4i framework covering the issues, interests, information and institutions involved in each globalised process:
1. Issues: the matters of importance in the conflict or disagreement.
2. Information: the data available.
3. Interests: the stakes of structured groups such as corporations, associations, trades unions, etc, and non-structured groups such as consumers, activists, etc).
4. Institutions: Legislature, regulatory and judiciary entities, local authorities, international tribunals, public opinion and the media, etc.
According to Ángel Saz, companies have several possible options. For impact on public opinion, they can use communication; for impact in the political arena, they can use lobbies, expert advice or campaigns; and in the judiciary scenario, they can take legal action. Saz did, however, acknowledge the cultural differences between corporate strategy in the US and Europe. ''All politicians need expert advice but the activity of commissioners in the EU is far more transparent than in the US.''
Aviation emissions. A case study
Ángel Saz then addressed aviation emissions, a case study which the audience had studied beforehand. He enlisted their help in revealing the interests at stake and the final outcome of the conflict.
The aviation industry accounts for approximately 2% of global CO2 emissions, so this issue has been a focal point for experts in the fight against climate change for many years.
As part of the emissions trading scheme which Europe has had since 2012 for flights within the EU, attempts were made to include aircraft taking off or landing in countries outside Europe too. This caused a head-on clash with China and the US and dragged airlines, the public opinion and international organisations into the fray.
Together with audience, Prof. Saz examined each of the 4i (issues, information, interests, institutions) in this case and how different parties could actually play different parts and have different interests.
The International Civil Aviation Organisation recently agreed upon maximum emissions as of 2020 and carbon offsetting for airlines failing to comply.
Ángel Saz explained the final outcome of the case and asked the audience whom they thought this final decision would benefit.
invites you to this Refresher Programme by Angel Saz (PhD 07)
, associate professor in ESADE’s Department of General Management and Strategy and director of ESADEgeo: ''Global scale business and policy: different interests and clashes in the EU about aviation industry emissions.''
This talk is part of ESADE’s first MOOC, ''Geopolitics and Global Governance: Risks and Opportunities,'' which will take a look at what happens when an international actor (the EU) takes action against a global phenomenon, i.e. climate change, by implementing policies aimed at the aviation industry. An example of how the interests of different international actors – countries, coalitions of countries, international organizations, multinationals and others – are at odds and clash. Together we will uncover the interests at stake and how a solution was reached.
To guarantee a lively and dynamic session, we would please ask you to:
(1) Watch this five-minute video
giving an introduction to the global issue of climate change and
(2) Read the attached case study
, before coming along to the session.
In the classroom we will take a close look at the issue of climate change and its governance, the blurred lines between international and national politics, and what happens when international politics clash with multinational corporations. We will then analyse the case study together and draw pertinent conclusions.
Angel Saz-Carranza (Barcelona, 1976) is Director of ESADEgeo Center for Global Economy and Geopolitics in addition to being Lecturer of the Department of Strategy and General Management. He earned a PhD in Public Management from ESADE as a Visiting Scholar at Wagner School of Public Service (New York University) where he spent three years. Previously he earned a Master's degree in Aeronautical Engineering from Imperial College (University of London). A beneficiary of La Caixa and Fulbright scholarships, he has managed several European Framework Program research grants. His research has been published in the Journal of Public Administration and Theory, Administration & Society, International Journal of Public Sector Management, Public Management Review, Sage 21st Century Reference Series, Routledge Studies in Business Organizations and Networks and Palgrave Macmillan and in numerous Spanish-language publishers and journals. Additionally, he also works and consults with several non-profit and governmental institutions in Europe, Africa, Latin America and Asia.
See you there!
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