European Journal of Business Science and Technology 2016, 2(2):131-140 | DOI: 10.11118/ejobsat.v2i2.57

The Importance of Corporate and Social Involvement in the Implementation of Climate Friendly Projects

Attila Zsolt Kovács1, Bálint Horváth1, Waleed Ali Hussein Al-Zaidi1, Enikő Lencsés1
1 Szent István University, Gödöllő, Hungary

Everyday people have been experiencing changes in weather and climate. The question is whether we are really on the top of a tendency or we just overstate the weather change because of our heuristic mentality? If the negative tendency of change is adopted we must involve climate friendly technologies in the strategic decision making process of enterprises. On the other hand, the important thing to keep in mind is that the main motor of the strategy is the profit. In case of the latest climate related strategies the problem is the hard quantification of the real profitability because it also depends on external effects. In spite of the classical investment analysis, the costbenefit analysis is able to take into account negative and positive external effects. In case of strategic decision the new technologies or methods are also confronted with resistance. In the strategic decision making process we should calculate with these resistances as well. The aim of this study is to highlight those long-term calculation methods and business models which are able to consider the external effects of projects and examine the real profitability and break-even point in case of bad climate tendency scenarios. This paper presents a new method which includes the cost-benefit analysis and the change equation.

Keywords: climate strategy, environmental project development, cost-benefit analysis, internalization (pricing of externalities), change management
JEL classification: D61, D62, Q51

Published: December 30, 2016  Show citation

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Kovács, A.Z., Horváth, B., Al-Zaidi, W.A.H., & Lencsés, E. (2016). The Importance of Corporate and Social Involvement in the Implementation of Climate Friendly Projects. European Journal of Business Science and Technology, 2(2), 131-140. doi: 10.11118/ejobsat.v2i2.57
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