In class 15, we discussed the importance of creating shared value. This is the idea where companies work beyond the so called “social corporate responsibilities” and actually integrate their production with 3 key factors: social, profits and environment. As a result, they’ll achieve economic success through appreciating societal needs. Recently, the foundation tied to Rockefeller family (heir to Standard Oil Co.) announced that it is going to join “other groups in exiting coal and tar sands investment”: they’re planning to phase out of fossil fuel use and commit to climate change. In short, they’re cutting their investments from coal, natural gas and oil sands producers.
The Rockefeller Brothers Fund‘s action is a symbolic boost for a more sustainable environment. By doing this, I think they’re one step closer towards creating shared value. Global warming has become a significant issue, thus with fossil fuel’s carbon emissions being one of the main contributors, cutting ties with those non-renewable energy firms shows that they’re committing to the environment issues. It is an act of discouraging non-renewable energies to taint our planet further more. The Rockefellers’ movement may also create a momentum which brings in other shared value acts for the environment: in a way, it signals other firms to divest from the fossil fuel firms as well: “since the fossil fuel companies have the money, we have to have something on our side, and that’s people,”- Bill McKibben. Ultimately, the fund is attempting to set a trend which moves stakeholders away from fossil fuel (oil) companies, encouraging the use of renewable energy.
In conclusion, Rockefeller Brothers Fund’s decision shows me that some organizations/firms are actually making an effort to meet the societal needs. If their divest plans succeed, I anticipate that it will certainly help promote the use of sustainable energy and hence a more sustainable environment.
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Read More:
1. http://www.rbf.org/post/fund-announces-plans-divest-fossil-fuels
2. http://breakingenergy.com/2014/11/05/who-is-afraid-of-fossil-fuel-divestments-apparently-the-fossil-fuel-obby/