MGT723 Research Project: Business Strategy and Carbon Emissions

This report, submitted for MGT723 Research Project, investigates the impact of business strategy and incentives on carbon emissions reduction. The study explores the integration of climate change into business strategies and the role of incentives in promoting climate management, drawing from literature review, OECD guidelines, and experimental studies. The research employs descriptive and inferential statistical analyses, including regression analysis, to examine the relationship between business strategy, incentives, and carbon emission reduction. The findings reveal insights into the significance of business strategy and incentives on carbon emissions. The report includes data analysis, hypothesis testing, and a discussion of the implications for practice and theory, along with limitations and opportunities for further research. The analysis uses data from 150 observations to determine the relationship between carbon emissions reduction and two different elements business strategy (as far as environmental change coordination) and Incentives (as far as motivating force for administration of atmosphere).

MGT723 Research Project
Semester 2, 2018
Assessment Task 3: Report
Student Name: Aliza Giri
Title: Impacts of Business Strategy and Incentive on Carbon Emissions Reduction
Submission Date: 21/10/2018
(Note that the submission is due by 5:00pm via SafeAssign)

Acknowledgement:
I certify that I have carefully reviewed the university’s academic misconduct policy. I
understand that the source of ideas must be referenced and that quotation marks and a
reference are required when directly quoting anyone else’s words.
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Introduction: (Not assessed)
The inclusion of the considerations of climate change into the corporate strategies has begun
giving a new shape to the manner in which enterprises perform the businesses. In their
attempts to handles climate change, companies and firms come across new opportunities,
among them creating new technologies as well as commodities and gaining access to new
markets (Herold, Lee and Gunarathne, 2018). Through gaining higher energy efficiency, the
companies are as well able to make significant savings.
However, companies still face greater and more significant risks when it comes to climate
change among them increasing regulatory and legal pressure, enhanced costs resulting from
internalization of carbon, risks associated with reputation as well as disruptions to the
business activity inducted by changes in the climate (Ben‐Amar and McIlkenny,2017). The
end results is that the balance between the costs and the available opportunities will rely on a
number of factors among them government policies, specificities as well as the ability of the
companies to involve the consumers in handling the challenges of climate change (Andrew
and Cortese, 2011).
This aim of this paper is to establish if business strategy as well as incentives have a
significant role to play when it to comes to checking the level of carbon emissions in a
business organization with more focus being on those activities that are geared towards the
establishment of a low carbon economy. The aim of this paper will be met by drawing mainly
from the works of recent literature, adoption of the recommendations as outlines in the
OEDCD Guidelines for Multinational Enterprises as well as from experimental studies that
will be conducted (Freedman, 2009).
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Literature Review: (Not assesse d)
A continuous audit by McKinsey(2015) on the manner in which associations take into
consideration climate change, where more than 2000 authorities responded, revealed that
60% of chairmen see ecological change as an indispensable idea inside their general system
of the organization, while 70% perceive it as a basic estimation for reputation and check.
Elucidation into the activities of the organization remains at any rate compelled: to the tune
of 4 out of 10 of the CEOs ecological change is certifiably not a basic thing on their
arrangement, 70% uncovered that their association excludes ecological change centers in the
implementation review of authorities as well as including the heads specifying that
supervising characteristic issues was basic, 60% encompassed a niche with firms that had not
portrayed surges diminish targets. In any case, 80% of chairmen foreseen that may be
impacted by some kind of change in the environment in the next half a decade (Sullivan,
2017).
Business state of mind towards environmental change is driven by an assortment of
components, including government approaches also, control and weight from shoppers and
different partners (Ben‐Amar and McIlkenny, 2015). Lately, governments in OECD nations
have actualized residential atmosphere strategy systems, including a blend of approach
instruments went for moderating ozone harming substance (GHG) outflows. These
arrangement blends incorporate market-based instruments, for example, duties and top and-
exchange frameworks, and additionally direction and data battles (Herold, Lee and
Gunarathn, 2018). Residential atmosphere arrangements are advancing, with key points of
reference still to come, for example, the universal post-2012 system that nations are intending
to concur at COP15 in December 2009, in Copenhagen. While organizations are confronting
expanding government measures, a vital part of the business reply to environmental change is
likewise determined by private activities to react to societal desires imparted by different
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channels than law (Bocken et al, 2014 )(e.g., purchaser affiliations, the press, global
associations, and so on.).
The goal of this examination is to decide the connection between carbon emanations decrease
and two different elements business system (as far as environmental change coordination)
and Incentives (as far as motivating force for administration of atmosphere) (Liao, Luo and
Tang, 2015). The examination likewise attempts investigates the response to the two
inquiries; first, why environmental change ought to be coordinated in a business technique
and what influence does it have in decreasing the carbon outflows? Second, does motivating
force for administration of environmental change affect decrease in carbon outflows? The
CDP reactions will help both the organizations and every one of the clients of data, as it gives
chances to the firm to distinguish the methodology for administration and decrease of
emanations and the information ought to likewise profit the financial specialists and different
partners by giving data about organization practices and activities in regards to environmental
change (Andrew and Cortese, 2011).
Research question
What significance does integration of climate change in business strategy have on carbon emission
reduction?
Conceptual Model: (Not Assessed)
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Business Strategy
Independent
Variable
Carbon Emission
Reduction
Dependent Variable
Incentives
Moderating
Variable

Hypotheses: (Not assessed)
Hypothesis 1: Business Strategy with regard to integration of climate change has a significant
impact on the reduction of carbon emissions.
Hypothesis 2: Provision of incentives aimed at climate management has a relatively
significant effect on the reduction of carbon emissions.
Data Analysis – Descriptive (Not assessed)
INDEPENDENT VARIABLE
Statistics
The tables 2, 3 and 4 below are an illustration of the changes in the values for the
independent variable. From the tables it can be observed that the descriptive statistics which
for this case was also the independent variable i.e. the Business Strategy (Integration of
Climate Change), there were 150 observations and not even a single missing observation.
Business Strategy (Climate
Change Integration)
N Valid 150
Missi
ng
0
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Table 1: Descriptive Statistics (Business Strategy)Table 1: Descriptive Statistics
(Business Strategy) above indicates that the data variable had 150 valid observations with no
missing observations.
Table 2: Descriptive Statistics (Business Strategy)
Table 2: Descriptive Statistics (Business Strategy) above indicates the proportions of
the “Yes” and “No” responses to the climate change integration into business strategy. 128
companies have climate change integrated into their business strategy (“Yes” Response). The
percentage equivalence for this is 85.3%. The companies that have not integrated climate
change into their business strategy were 22, the percentage equivalence being 14.7%.
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Figure 1: Pie Chart Business Strategy (Climate Change Integration)
Figure 1 above is the pie chart representation of the independent variable.
DEPENDENT VARIABLE
Table 3: Descriptive Statistics (Carbon Emissions Reduction)
Table 3: Descriptive Statistics (Carbon Emissions Reduction) above shows that the
data variable had 150 observations. The maximum reduction in carbon emissions for the year
2014 was 123.13% while the minimum reduction -72%. The mean for the reduction in carbon
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emissions was -0.6743%. The standard deviation for carbon emissions reduction was
21.98608 (Chu, 2015).
Figure 2: Histogram representation of the dependent variable
The histogram illustrates the frequency the reduction in the emission of carbon for the year
2014 from the 150 valid observations that were made. From the histogram it can be noticed
that the highest reduction was experienced at a frequency of about 50 where the reduction
was at 0.00. Note should take of the nature of the frequency polygon generate from the bars
which demonstrated an exponential increase in the reduction which levels off at 100 (Liesen
et al 2015).
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MODERATING VARIABLE
Table 4: Descriptive Statistics (Incentive Variable)
Table 4: Descriptive Statistics (Incentive Variable) above indicates that the data
variable had 150 valid observations with no missing observations.
Table 5: Descriptive Statistics (Incentive Variable)
Table 5: Descriptive Statistics (Incentive Variable) above indicates the proportions of
the “Yes” and “No” provision of incentive for management of climate. 109 companies have
incentive provided for the management of climate (“Yes” Response). The percentage
equivalence for this is 72.7%. The companies that do not have incentive provided for the
management of climate were 41, the percentage equivalence being 27.3%.
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Figure 3: Bar graph representation of the Incentive variable\
NORMALITY
Statistics
The table 7 below is an illustration of the Normality of Carbon Emissions Reduction.
Information regarding the skewness and kurtosis as well as the accompanying std. errors is
shown. This data shows that the findings of the research illustrated relatively skewed results
or data to a given direction (Chu, 2015)
Carbon Emissions Reduction (%
Reduction in Carbon Emissions for
2014)
N Valid 150
Missing 0
Skewness 1.387
Std. Error of Skewness .198
Kurtosis 6.645
Std. Error of Kurtosis .394
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Range 195.13
Table 6: Normality of Carbon Emissions Reduction
From Table 6: Normality of Carbon Emissions Reduction above, we observe that the
normality statistics for the carbon emissions reduction are: Range = 195.13, Skewness =
1.387, Kurtosis = 6.645. The data on the carbon emissions reduction can therefore be said to
be slightly skewed to the right (Liesen et al, 2015).
Figure 4: Carbon Emissions Reduction in Terms of Business Strategy
Key
“No” Outliers:-3, 2, 13, 7 & 17
“Yes”: -131, 102, 127, 118, 140, 128, 80, 93, 25, 106 & 100
Shown above is the graphical portrayal of the depiction of ward variable (Carbon
Emissions Reduction) as far as the autonomous variable (Business Strategy). Figure 4:
Carbon Emissions Reduction in Terms of Business Strategy appears there are 5 anomalies on
the "No": 3, 2, 13, 7 and 17, while on the "Yes" we have 11 exceptions: 131, 102, 127, 118,
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