The Roles of Business and Government in Energy Conservation and CSR

This report delves into the critical roles of businesses and governments in fostering energy conservation and promoting corporate social responsibility (CSR). It highlights the increasing demand for energy globally and the necessity of sustainable practices to preserve resources for future generations. The report emphasizes that both businesses and governments have distinct responsibilities, including businesses adopting energy-efficient measures, investing in renewable energy sources, and reducing toxic emissions. The government's roles include funding energy sustainability campaigns, creating public awareness, and partnering with international agencies to promote energy conservation. Furthermore, the report discusses the superimposition of governmental obligations on corporations to ensure they contribute to community well-being through CSR initiatives and energy-saving practices. It also touches on the importance of incentives and mentorship for startups focused on energy conservation, as well as the development of new energy technologies and infrastructure. The report concludes by underscoring the importance of collaboration between businesses and governments to address energy-related challenges effectively.

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Executive summary
Corporate social responsibility (CSR) has taken roots in the contemporary business
environment. The global consumers and stakeholders expect multinational corporations to take
non-economic actions to alleviate living conditions and protect the environment. CSR principles
also involves actions of businesses and governments engaging in sustainability practices. Energy
conservation is one of the sustainability practices aimed at saving energy sources for the future
generations. It is the role of the business to ensure they use measures such as shifting to
renewable energy and effecting energy saving measure. The government is tasked with
researching and developing energy saving technologies. The government can also grant existing
business and start-ups financial loans and grants to effect energy saving measures. Many
multinational corporations have the financial muscle to assist the governments in addressing
social and environmental challenges. Superimposing government obligation to corporations
ensures that the business give back to the community through CSR initiatives. It is therefore
desirable for the business to assist the government in implementing sustainable practices.

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Introduction
There is an increase in demand for energy in both developed and developing countries.
Companies and governments alike are being stimulated to deal with energy related issues. This is
through fitting CSR activity of energy conservation in their operation context. The world
population is growing and it is expected to reach over 90 billion by 2050. Energy sustainability
will ensure that the resources do not go to depletion, for the use of future generations. Both the
government and corporates should each undertake critical roles to facilitate energy sustainability.
The growing global concern on environmental degradation has necessitated the corporate world
to adopt sustainability practices commonly known as The Corporate Environmental management
(CEM). The environmental CSR focuses on reducing damaging effects on the environment
occasioned by business practices (Baer,2012, pp. 408). The World Bank in collaboration with
governments and businesses has developed the ‘Free Market Environmentalism’ that stresses the
need for collaboration between the governments and corporations to correct the failures of
energy conservation. Businesses can adopt energy saving practices while the government should
invest in alternative energy sources such as the renewable energy. The superimposition of the
government on corporate operations should be aimed at ensuring that Multinational corporations
adopt good corporate citizenship.
The role of business in energy conservation
Efficient use of energy ensures that the business switch to using less energy for routine
tasks, for example, switching to energy efficient electrical appliances. Energy conservation is
important to the business as it does not only improve the environment but also reduces the

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operation cost of the business, and prevent the depletion of resources. The following are business
roles in energy sustainability
Adoption of measures that will save on the use of electricity
IBM uses smart strips that sense when an electrical device is off and cuts off its phantom
power, these strips are much more convenient as they ensure the device is still connected to the
power source but does not use power (Flammer, 2018, pp.1300). Lighting is one of the causes of
high energy use in businesses. Large Multinational companies such as Walmart are replacing
incandescent bulbs with low power LED lights in their retails stores (Andrews and Johnson,
2016, pp.200). Additionally, Walmart uses solar-powered lighting to light parking lots and
freezers. Renewable energy sources are more convenient than non-renewable ones as they cannot
run to depletion (Barnett, 2019, pp.179). Additionally, renewable energy sources do not emit
harmful greenhouse gases to the environment. Business are the largest consumers of power, and
should therefore adopt such practices to save on energy
Reduction of toxic emission.
Vehicles using fossil fuel emit harmful greenhouse gases that increase the carbon
footprint. Environmental sustainability practices include the reduction of greenhouses gases that
cause climate change. Walmart is an example of a company that has incorporated sustainability
practices in its supply chain. The company has an efficient packaging system that ensures each
vehicle carry more goods thus limiting the number of trips. Google also uses carpool systems for
sharing of rides by the employees, consequently limiting the number of vehicles used daily.
Although the consumers are also responsible for energy conservation measures, businesses are in
a better position to make a huge impact on efficient energy use (Failteireland.ie, 2019). The

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consumers often judge the businesses based on their efforts of becoming good corporate citizens.
The government also plays a big part in ensuring energy conservation is achieved. Energy
conservation is not limited to business corporations but encompasses all other stakeholders
including the consumer, suppliers, and government.
The role of government in energy sustainability
Funding energy sustainability campaigns.
The government bears more financial and administrative powers to implement energy
conservation to the end. The government can come in and reinforce energy conservation
measures (Knudsen, Moon and Slager, 2015, pp.89). For, example, the government can offer
grants to business so that they can set-up renewable energy sources.
Creating public awareness and partnering with international agencies.
It is the role of the government to carry out civic education on energy sustainability. The
government can achieve this through advertisements campaigns and encouraging businesses and
consumers to practice sustainable practices such as installing solar panels or switching off lights
when not in use. The government cannot achieve energy conservation measures alone but it
needs to partner with other stakeholders. For example, a government can partner with world
energy regulatory bodies such as the United Nations Environment Program (UNEP) and other
public and private institutions, international non-governmental organizations, and programs that
promote energy conservation. This collaborative effort enables the government to get new ideas
on better energy sustainability measures.
Adopting new energy technologies and offering loans

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It is also the role of the government to bring new technologies to the country that promote
cleaner energy consumptions. The government can also offer low-interest loans and grants to
agencies that seek to promote energy efficiency. For instance, if a certain agency wants to carry
out research on energy consumption within the population, the government can review their
proposal and fund them partially or fully.
Offering incentives and promoting energy conservation measures
Another governmental role is offering incentives and mentorship to startup companies
that are geared towards energy conservation. Similarly, the government role in energy
sustainability is in the promotion of energy efficiency through exhibitions and fairs. This creates
the interactions between energy conservation experts and novice companies with energy
conservation in mind. Such conferences also set visions and goals for energy efficiency. The
government should also set aside budgetary allocation for the setting up of renewable energy
sources. It is the role of the government to develop critical infrastructures such as wind power
plants, hydroelectric powers and solar panels plant that will harness renewable energy. The
government can ask for loans and grants from international financial bodies such as the World
Bank to achieve this. The government can additionally partner with large multinational
organizations to facilitate the establishment of this infrastructures.
Business tasks in energy conservation
In the CSR practices of energy conservation, certain task requires the discretion of the
businesses while others necessitate government interventions. In contemporary business
operating environment, the concept of CSR encounters two major problems; one being the lack
of a standard definition of what constitutes as corporate responsibility and second is the over-

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reliance of consumer oversight commonly known as civil regulation. CSR programs are left at
the discretion of the managers to define what constitutes the CSR practices (Crane, Matten and
Spence, 2019, pp.13). The main challenge of this approach is that ultimately, CSR is what a
business wants it to be and often the program which is more convenient for the business.
However, in the sustainability practice of energy conservation, some of the tasks do not need
definition and are straight forward for the business to adopt (Epstein, 2018). For example, the
business is expected to comply with rules and regulations set up by the state in terms of energy
conservation. For example, in the United States, all business consuming more than one million
GJ/A (100) of energy must report the consumption to the Department of Energy so that they may
be assisted with efficient methods of conserving energy (Kolk, 2016, pp.25). The business
should also comply with paying out of taxes to facilitate the government in coming up with
programs that will create energy efficiency. The critical task of business in energy conservation
sustainability practice includes developing business practices that conserve less energy. The
business can adopt a renewable energy source to reduce its carbon footprint. Additionally,
businesses should emulate Walmart and use energy efficient electrical appliances. Such
appliances consume less amount of energy and reduce energy wastage. By shifting to renewable
energy sources, the business can attract environmentally conscious consumers and increase their
profit margin. For example, Intel Corporation leads in the Environmental Protection Agency list
of the most energy efficient company in the United States. Intel is the largest purchaser of green
energy in the US. In 2015, the company purchased over 3.5 billion kilowatt per hour of
renewable power. In 2018, Intel Corporation installed a wind turbine and solar panels in its
headquarters at Santa Clara, California (Knudsen, 2018, pp.172). The company believes that
global climate change is a serious environmental concern that warrants a serious response from

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both the public and private sector. The example by Intel Corporation shows the need for global
businesses to embrace energy efficiency by shifting from non-renewable sources to green
sources. Additionally, such large multinational corporations are the biggest consumers of energy.
Adopting energy conservation measures will enable them to take huge steps in facilitating
worldwide energy conservation.
Government tasks in energy conservation
The government should handle energy conservation tasks such as setting up strategies
and policies for energy consumption. The government is expected to handle rules and regulations
relating to the consumption of energy and institute proper oversight policies that ensure the rules
are followed. For instance, Germany has based its energy policy on the principles of market
economies. The country has put up high prices for energy, necessitating the consumers to reduce
their energy consumption (Dentchev, van Balen and Haezendonck, 2015, pp.392). Further, most
of the corporations in Germany are substituting oil and other traditional non-renewable energy
sources for cheaper renewable sources. By having a well-designed plan, the government is able
to access the risk associated with high energy consumptions and design possible interventions to
safeguard energy use and its sources. It is also the task of the government to come up with cost-
effective energy saving solutions. This may be achieved through collaboration with other
institutions or the international community. For example, the government is expected to attend
world environmental and energy conservation forums such as the G8 summit to brainstorm on
ideas for energy sustainability (Schrempf-Stirling, 2018, pp.12). The government is also tasked
with the provision of alternative energy sources and suitable technology to prevent the depletion
of energy. The government can also offer financial incentives to businesses to facilitate the
adoption of cleaner energy sources. The German government, for example, gives incentives to

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businesses to allow them to introduce energy saving plants. The small and medium-sized
enterprises are offered special advisory services by the government to embrace energy saving
models.
Government superimposition on businesses.
In the 21st century business operating environment, it is no longer sufficient for a
corporation to be a good corporate citizen. The new trends require businesses to consider the
bindings of stakeholders and acquire a license to operate in the new business environment. The
business has been superimposed with ‘soft laws’ and codes of standards that are beyond the
existing legal requirements. The onset of neo-liberalism has introduced the concept of free
markets with the government delegating various social functions to private institutions. The
firms are also required to issue CSR reports detailing their efforts in sustainable practices. World
businesses are also required to offer directorship in solving national and global issues such as
eradication of poverty, provision of relief, and reforming the education sectors. Governments
across the world are increasingly giving corporations responsibilities that were traditionally done
by the government. This notion was solidified by the calamity of Hurricane Katrina in the United
States. The first responders to the scene were large corporation including Walmart, FedEx, and
Home Depot. This was traditionally the responsibility of government agencies such as FEMA.
These corporations were able to effectively respond to the disaster in ways the government could
not. After the disaster, public opinions indicated that the majority of Americans were looking up
to businesses to provide answers and leadership for societal challenges (Baer, 2012, pp.411).
Many multinational corporations have the spending power and their budget are higher than most
of the developing countries. After the world war, there was an increasing concern about the
power exhibited by large corporations. Most of the world leaders were afraid that these

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corporations can take over the running of various nations. There have been instances whereby
large corporations have been involved in political outcomes. For example, the ongoing scandal
of Cambridge Analytica shows how a company can use consumer data in their disposal to shape
the outcomes of the elections (Marques and Mintzberg, 2015, pp.10). Superimposing
government duties on business can help the government to complement its functions up to a
certain point. For example, large businesses can use their financial muscle to respond to
worldwide calamities and catastrophic events. However, some of the managers of the
corporations oppose the superimposition claiming that businesses exist for the sole purpose of
profit gains. Corporate social responsibilities are viewed as a non-economic gain that affects the
functions of the businesses. Nevertheless, the businesses have the responsibility to ensure their
actions do not degrade the environment. They also carry the responsibility of alleviating the
livelihoods of the community in which they operate. Multinational corporations are by
themselves mini-governments operating in their own private structures (Lyon, et al., 2018,
pp.16). Some of these corporations have efficient and better managerial systems than most of the
countries. Giving businesses much-unchecked powers can result in the imposition of a
capitalistic rule in the world. It is therefore important for a business to respond to disaster and
calamities and compliment social government functions. However, the corporations should be
regulated to ensure they do not overuse their responsibilities for selfish gains. Government
superimposition on corporations is only desirable if it is used to meet social challenges and
protect the environment.

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Conclusions and Recommendations
Energy sustainability is one of the many issues encompassed in environmental protection.
It involves such practices as efficient use of energy through energy saving techniques and the
replacement of non-renewable energy sources with green energy sources. Both the business and
the government have a role to play in the achievement of energy conservation. It is the task of
the business to embrace energy saving techniques such as using energy-efficient appliances,
developing renewable energy sources infrastructure and adopting measures such as smart strip
and switching off lights when not in use. Multinational corporations are among the biggest
consumers of energy in the world. The role of the government in energy conservation include
carrying out research on new and efficient energy technologies, offering financial incentives and
grants to business to promote energy conservation and creating public awareness on the
importance of energy conservation. Additionally, governments are expected to participate with
the NGOs and the international communities to enable the adoption of energy saving measures.
The new trend in business has seen multinational embracing CSR initiatives to boost functions
which were traditionally under the obligation of the government. Corporations cannot replace the
role of governments in meeting societal needs. However, they can bring on board skills and
resources that can complement the government in solving environmental and social challenges.
Recommendations
From the foregone, I recommend the following measures for both governments and
businesses in energy conservation
 The business should use ‘energy star’ rated appliances that do not consume much
energy

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 Each business should develop policies that will reduce their energy usage and
carbon footprint
 The business should accept responsibilities in energy conservation and contribute
funds to the government for establishment of renewable energy sources.
 The government should establish energy conservation targets in their jurisdictions
 Governments should also implement renewable power Quota systems
 The governments should prioritize energy conservation by allocating funds in
their budgetary allocations.

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