Sunday 18 September 2011

Siemens shows awareness of societal pressures

The decision by Siemens to withdraw from the supply of nuclear power stations is a particularly interesting consequence of what Jensen might term "organisational legitimacy and identity in the public sphere" in her important 2001 paper on the application of the public sphere to public relations practice.   According to the announcement, Siemens is withdrawing from the supply of nuclear power plants responding to the "clear positioning of German society and politics for a pullout from nuclear energy".  

In other words it is not responding to market conditions but to societal pressure.  In most markets, Siemens supply of nuclear systems would be entirely socially acceptable, particularly in the current environment with jobs such a key focus for most countries but the announcement from Siemens suggests that Germany's focus on alternative energy makes this market focus no longer acceptable from such a major German supplier.  It is a very different decision to, for example, the reversal of Shell's Piper Alpha disposal which was taken in a crisis PR situation facing widespread public hostility.  This decision appears to be the consequence of what might be called rational discourse in the public sphere and Siemens reading of the situation as a reflective "economically successful, legal and responsible company".

What will the Siemens' shareholders think of the decision?


2 comments:

  1. Sounds strange to me, Siemen is a big Company and suppose to stay with the nuclear power station, I think shareholders must force Siemen
    Company not to leave this huge power station.
    Business Insolvency

    ReplyDelete
  2. I’ve just Simon Pegg know he’s on the list, so you never know you might get a visit.

    ReplyDelete