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Exploring the Cognitive Foundations of Managerial (Climate) Change Decisions.

Belinda Wade1, Andrew Griffiths2

  • 1Business School, University of Queensland, Brisbane, Australia.

Journal of Business Ethics : JBE
|August 2, 2021
PubMed
Summary
This summary is machine-generated.

Organizational inaction on climate change stems from cognitive biases in managerial decision-making. Addressing these requires leadership, social norms, and structural reforms for effective sustainability action.

Keywords:
Climate changeCognitionCognitive framingManagerial interpretationSensemakingSustainability

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Area of Science:

  • Environmental Science
  • Organizational Behavior
  • Cognitive Psychology

Background:

  • Climate change presents severe global risks, yet organizational action lags despite scientific consensus and agreements like the Paris Agreement.
  • A gap exists between the recognized need for climate action and its implementation within organizations.

Purpose of the Study:

  • To investigate the cognitive underpinnings of managerial decision-making regarding climate change and sustainability.
  • To identify factors contributing to organizational inaction on climate change.
  • To propose solutions for promoting effective climate action within organizations.

Main Methods:

  • A systematic review of existing research was conducted.
  • Literature on cognition, sensemaking, and managerial interpretation related to climate change and sustainability was analyzed.
  • A multilevel analysis was performed to identify key themes and concepts.

Main Results:

  • Key themes and core concepts influencing cognitive processes in climate change decision-making were identified.
  • Factors contributing to organizational inaction were elucidated.
  • An integrated model was developed, illustrating the interplay of factors, cognitive processes, and outcomes.

Conclusions:

  • Managerial cognition significantly impacts organizational responses to climate change.
  • Addressing cognitive biases through leadership, social norms, and structural reforms can drive necessary climate action.
  • Overcoming inaction requires a multi-faceted approach targeting individual and systemic factors.