Organisational learning in contested environments: lessons from Brent Spar

Abstract

The Post–Altman model of corporate greening, with its focus on organisational learning as a key component in overcoming organisational barriers to environmental changes, is reviewed in relation to Shell's attempted deep sea disposal of Brent Spar in 1995. It is argued here that environmental innovation requires not only organisational learning but a capacity to collaborate with outsiders. Shell's failure to appreciate different perceptions of its Brent Spar proposals, and to develop the alliances that would have been needed to explore alternatives, resulted in costly damage to both its reputation and its European sales. The decision was reversed, and substantial organisational change took place, but as a result of external pressure rather than internal learning. Shell's experience raises significant issues for corporate greening, and particularly for companies seeking to improve environmental performance in contested environments. © 1997 John Wiley & Sons, Ltd and ERP Environment.