Two possible contrasting pressures upon New Zealand business: The economic versus the environment

Abstract

Since the 1980's, New Zealand has undergone some large-scale economic changes – changes that have affected practically every aspect of our lives. The deregulation of the New Zealand economy was undertaken in order to allow market forces to have more control than was previously possible in a country that was well known to support very protectionist measures. Now all this has changed. Naturally this has affected New Zealand businesses, as subsidies and other measures of support have gradually been taken away. New Zealand businesses are now more at the mercy of global market forces than ever before. This economic pressure is something that New Zealand businesses of all sizes and in all industries have to contend with. The fourth Labour government imposed a free market ideology upon the country, which has been carried on by subsequent governments, both National and Labour. The high levels of support and protection are now gone. Therefore New Zealand businesses need to concentrate upon their economic well being very carefully, perhaps more so than in the past when businesses enjoyed higher levels of protection. However New Zealand is well known for its commitment to the environment, along with its commitment to the free market ideology. During the 1980's New Zealand was active at a global level in voicing its problems with French nuclear testing in the Pacific, US nuclear ships in New Zealand waters, and other environmentally based concerns. The New Zealand government had expressed a concern for environmental issues. In 1991 the Resource Management Act came into being. This act was seen by many as a revolutionary jump towards environmental protection and sustainable management of natural resources. New Zealand is also well known for its 'clean, green' image – an image that is used extensively by the tourism industry in order to entice tourists to visit New Zealand. This focus on the environment and environmental protection has brought about another pressure for New Zealand businesses. The RMA has set out rules and guidelines for businesses to follow. Therefore New Zealand businesses have to follow environmental policies. This may be detrimental to the business from a short-term economic point of view. Given the current situation within New Zealand, it is easy to see why these two pressures could be very difficult to reconcile for many businesses. The main purpose of this dissertation was to find out how both economic and environmental pressures could affect both the behaviour and the attitudes of small firms in New Zealand about the environment and environmental protection within a business framework. This dissertation sought to investigate the nature of this possible contradiction that many New Zealand businesses might face. The main aim of this dissertation was to focus on a small number of New Zealand businesses, exploring the specific environmental practices they actually carry out, and to explore whether the owners or managers of these businesses consider environmental regulation as a contradiction in the deregulated economy that exists today in New Zealand.