The Relationship of Climate Strategy Proactivity and Competitive Advantage With Respect to Stakeholders’ Perceptions: An Exploratory Study
Climate Strategy Proactivity (CSP) is a relatively new concept discussed in the arena of economic and environmental development which indicates the voluntary pollution preventive and climate protective behaviour of the corporate. These corporate are prone to the potential risks associated with climate change and global warming resulting from their own irresponsible business practices. As a result of increased awareness and concerns, corporate have been under constant pressure to adopt suitable climate strategy not only with respect to the existing environmental regulations showing reactivity but also proactivity displayed by moving voluntarily beyond mandatory regulations. CSP is a survival strategy for the corporate as it nourishes enhanced climate consciousness to attain sustained profitability with the least effect on the climate resources. It is also assumed that government’s global commitments as per Nationally Determined Contributions and Sustainable Development Goals can only be achieved with proactive support of the corporate. CSP is a voluntarily initiated behaviour to pursue proactive climate conscious actions by the corporate undertaken to satisfy the needs of relevant stakeholders to gain competitive advantage. This exploratory study stresses that identification of relevant stakeholders is critical for the corporate which are willing to adopt CSP. The growing stakeholder awareness has provided these stakeholders with crucial information which is responsible for creating their perceptions. In contemporary times, where the corporate in developing countries are engaged in integrating the climate issues and concerns in their corporate strategy, the findings of this study suggest that earlier studies primarily focused on developed countries rather than the developing countries attaching more importance to the perceptions of managers and shareholders than other relevant stakeholders. This paper aims to offer an initial exploratory investigation of the various aspects related to the novel concept of CSP to develop an agenda for future research with respect to CSP of companies leading to competitive advantage and the perceptions of relevant stakeholders in developing countries.
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