The key theme of article is based on the governance of the businesses by the non-state actors which have taken the governance roles of national governments, but at some extent.
According to Sullivan and Gouldson (2017), the effective alignment of the external governance pressures for sufficient duration can impact the internal governance processes and corporate strategies and activities.
However, the firms will spend the money in the projects which are profitable. Supporting to this, Nasiritousi, Hjerpe & Linnér (2016) also affirmed that non-state actors are significant in enforcing the global governance due to having power from agencies. All these actors impact the climate governance effectively.
The study of Sullivan and Gouldson (2017) makes contribution to the field by developing literature review and suggesting that there may be other factors like financial business case and incremental changes that may restrict the non-state actors to enforce the firms to bring moderations in their business activities and operations in response to the climate change.
This study has limitations related to evidence in quantitative terms from the companies of the industry and does not provide primary findings to enhance the reliability and validity of the research outcomes.
In the research of Pereira, et al., (2013), it is also evaluated that the firms in the retail sector have worked well in reducing the impact of their business operations on environment without any significant governance regulation. It can be effective to consider the changed aspects of the governance relaying the state actors at low extent and non-state actors like private and civic actors at high context.
But, these modifications are possible on favourable business conditions and opportunities for incremental changes (Nasiritousi, Hjerpe & Linnér, 2016). Regarding this, Ziegler, Busch & Hoffmann (2009) also stated that there is relationship between stock performance and corporate activities to address the climate change.
The strengths of the article are that it is based on evidences from the previous researchers with proper supports and arguments in relation to their findings. It also considers the particular case of retail industry that helps to provide the research findings in practical way and relate it in real context.
It has some weaknesses as it does not clear on the degree to force the external governance presses by the firms to take action. In addition, a primary study can be conducted to determine attitudes of different individuals regarding the significance of non-actors.
It can be concluded from the article given by Sullivan and Gouldson (2017) that there are relation between the external governance forces, internal governance conditions and organizational activities on climate change. If the business case weakens, or there is no opportunity for incremental changes, then it is difficult for the non-state actors enforce them to change their practices and reduce the carbon emission.
This study also reveals that it is crucial for the policy makers and other stakeholders to empower the multiple actors to govern the climate change performance of the businesses. For this, these actors should be enlisted and engaged with others to decide the areas of common interest and act in effective way.
Nasiritousi, N., Hjerpe, M., & Linnér, B. O. (2016). The roles of non-state actors in climate change governance: understanding agency through governance profiles. International Environmental Agreements: Politics, Law and Economics, 16(1), 109-126.
Pereira, L., da Fontoura, Y. S. D. R., & da Fontoura, C. F. V. T. (2013). STRATEGIC CSR SHIFTS TOWARDS ADAPTIVE FOOD GOVERNANCE UNDER ENVIRONMENTAL CHANGE: A COMPARISON BETWEEN SOUTH AFRICAN AND BRAZILIAN RETAILERS/ESTRATÉGICAS CORPORATIVAS PARA UMA GOVERNANÇA DE ALIMENTOS ADAPTATIVA À MUDANÇA AMBIENTAL: UMA COMPARAÇÃO ENTRE VAREJISTAS SUL AFRICANOS E BRASILEIROS. Revista de Gestão Social e Ambiental, 7(1), 100.
Sullivan, R. and Gouldson, A. (2017) The governance of corporate responses to climate change: an international comparison. Business Strategy and the Environment 26(4): 413-425.
Ziegler, A., Busch, T., & Hoffmann, V. H. (2009). Corporate responses to climate change and financial performance: The impact of climate policy.