Nudging the powerful: Reflecting on how to make organisations comply with environmental regulation

This article argues that there is a role for nudging the powerful in the environmental sphere. Like humans, businesses and organisations are not rational. Like humans, this could be exploited using choice architecture (more commonly known as 'nudging'). Drawing on an empirical study of the Carbon Reduction Commitment (CRC), this article will explore how social norms can be used to shape organisational behaviour, with a view towards 'nudging' them towards more environmentally friendly behaviour. More specifically, social norms can be used to encourage collaboration or competition between regulatees, provided a connection to reputation can be made.