The Nokia Case

Topics: European Union, Policy, European Commission Pages: 14 (2148 words) Published: August 7, 2013
The Nokia Case
Environmental and Resource Economics | Dr. Dennis Häckl Benedikt Müller | Raphael Petri | Nicola Rabba | Mirjam Rössler | Friedemann Seith Leipzig, 6th February 2013

Agenda

Content

A

Introduction

3

4
B Nokia Case

4

C

Conclusion

Environmental and Resource Economics | Winter Term 2013 | Group 1

2

Agenda

Content

A

Introduction

4
B Nokia Case

4

C

Conclusion

Environmental and Resource Economics | Winter Term 2013 | Group 1

3

A Introduction

Governments can mainly use two policy instruments to INFLUENCE industries and firms Instruments of environmental policy

Command and control policies
EXPLICIT STATEMENT OF WHAT IS PERMITTED AND WHAT IS ILLEGAL (UNIFORM STANDARDS)  Lack of flexibility  Little or no incentive for businesses to innovate or to exceed control targets

Market orientated policies
REGULATIONS THAT ENCOURAGE BEHAVIOR THROUGH MARKET SIGNALS  Cost effectiveness  Dynamic incentives for technology innovation

1

2

 Input standards  Process standards  Output standards … implemented by laws

   

Pollution charges Tradable permits Market barrier reductions Government subsidy reductions

The instrument which is best in a particular situation depends on the characteristics of the problem and its social, political, and economic context. Today‘s focus lies on the development of environmental standards by the EU Commission (command and control policies) Environmental and Resource Economics | Winter Term 2013 | Group 1 Source: Althammer (2013), Stavins (1998) 4

A Introduction

Companies have different possibilities of RESPONSE so as to react to external pressures Forms of organizational responses

Distinction
ACQUIESCENCE Conscious intent to conform COMPROMISE Balancing, pacifying, and bargaining AVOIDANCE Concealing, buffering, and escaping SAFEGUARDING Protection of a regulatory pressure PRE-EMPTING Using two strategies concurrently Environmental and Resource Economics | Winter Term 2013 | Group 1 Source: McKay (2001), Oliver (1991)

TIME SHIFTING Changing time frame e.g. by delaying RESHAPING Modification of regulation to improve fit Regulation DEFIANCE (REJECTION) Dismissing, challenging, and attacking MANIPULATION Opportunistic application 5

Agenda

Content

A

Introduction

B

Nokia Case

C

Conclusion

Environmental and Resource Economics | Winter Term 2013 | Group 1

6

B Nokia Case

In 2008, Nokia was the WORLD’S LEADING manufacturer of mobile devices Company profile

Late 1980s

Early 1990s

2008

2008: Nokia in Numbers
112,000 employees

1

Late 1980s Early 1990s Deregulation of the European telecommunications industries stimulates competition and boosts customer demand

€€€€€€
+2.6% +7% 39%

Net sales €51 billion Est. Global market share 39% 468 million mobile devices sold 100 full time employees working with environmental issues 7

2

Nokia strategically decides to declare telecommunications as its core business

3

1 billion people from every demographic segment of the population use Nokia mobile devices Source: Kautto (2009), Nokia (2008)

Environmental and Resource Economics | Winter Term 2013 | Group 1

B Nokia Case

Ever since, Nokia has taken an ACTIVE, OPEN and ETHICALLY sound approach to environmental protection Nokia and its environmental policy

Key issue
Product life-cycle-based approach to reduce the environmental impact of devices and operations

Environmental milestones until 2008
1997: First Nokia recycling pilot schemes in Sweden and UK 2003: Global partnership with WWF 2005: First EU RoHS1 compliant mobile even before the legislation came into force 2006: Introduction of new packaging which decreased material by 50% Environmental action plan (part of IPP pilot project2) 2007: Introduction of unplug charger reminders Usage of 25% renewable energy 2008: Introduction of energy rating system for mobile charger...

References: (2/2)
Oliver, C. (1991) Strategic Responses to Institutional Processes. Academy of Management Review, Vol. 16, No. 1, pp. 145-79. Singhal, P. (2006) Integrated Product Policy Pilot on Mobile Phones. (available at http://ec.europa.eu/environment/ipp/pdf/final_report_mobile.pdf), [retrieved on 01/04/2013]. Stavins, R.N. (1998) Market-based Environmental Policies. Discussion Paper 98-26, Environment and Natural Resources Program. John F. Kennedy School of Government, Harvard University (available at http://www.rff.org/documents/RFF-DP-98-26.pdf), [retrieved on 02/04/2013].
Environmental and Resource Economics | Winter Term 2013 | Group 1
19
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