Exploring microeconomic drivers for corporate finance and green strategy initiatives

Abstract
The importance of organizations taking a sustainable perspective towards growth has never been
greater. There is a lot of discussion on how organizations should work towards making their
operations more efficient and cost effective. Companies have sustainability drives as a part of their
Corporate Social Responsibility (CSR) departments. However, with environmental and climactic
degradation reaching alarming levels, its high time that sustainability and environment sensitivity is
integrated into strategic and financial decisions of the company and not only operational and
functional. This research proposal explores microeconomic drivers which make a case for green
finance and green strategy in organizations using the concept of environmental externalities,
valuation of natural capital and game theory. We will also look at the ways in which these three
concepts can lead to implementable frameworks for corporate initiatives and government policies in
the field of environmental sustainability and conservation.
Introduction