Why do companies go green? Examining the drivers of sustainable self-regulation
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School of Business |
Master's thesis
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en
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77
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Abstract
Climate change stands as one of the most critical challenges currently confronting the global community. Since the 1970s, policymakers in developed nations have sought to influence corporate emissions, initially employing command-and-control methods and subsequently adopting incentive–based policies. However, beginning in the 1990s, many corporations have started to develop voluntary approaches to pollution abatement, which challenges the prevailing theoretical assumption that companies comply solely with minimum legal requirements. This thesis examines the literature addressing the question of why some companies opt for sustainable self-regulation while others do not. Within this context, self-regulation is defined as company’s voluntary initiatives to mitigate its emissions and enhance its environmental efficiency beyond what is mandated by law. The findings indicate that both incentives and firm characteristics significantly impact on a company’s willingness to adopt voluntary environmental regulations. While some results remain mixed, the predominant perspective suggests that public image, competitive dynamics, and future regulatory pressure serve as key motivators for corporate self-regulation. Furthermore, characteristics such as firm size, emission levels, and industry type also play a crucial role in shaping the decision to engage in self-regulation.Description
Supervisor
Liski, MattiThesis advisor
Liski, MattiHuttunen, Kristiina