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Strategy and Sustainability in International Business:

Evidence from selected DJSI 2012 Companies

ANZ
GS E&C
Microsoft
Linde
Philips
GPT
2012
Intro
Background
Literature Review
DJSI 2012 enlisted 6 international companies (ANZ, GS E&C, Microsoft,
Research Questions, Linde, Philips & GPT)
Hypothesis, Methodology

Analysis-Mission Purpose
Analysis-Social
• Identifying if the business activities of the companies are followed by
the mission statements
Analysis- Environment
• Finding the correlations between the sustainability factors from three
Analysis-Economic
dimensions along with sustainability status.
Limitation
Recommendation
Intro
• Sustainable strategy implementation and the effectiveness of the execution of
Literature Review this process was examined. The fuller the provision of a sustainable perspective
Research Questions, of the strategy implementation process for the organization, the higher its
Hypothesis, Methodology degree of effectiveness.
Analysis-Mission
• Companies with a minimum of computer resources, whereas managers play a
Analysis-Social
key role in its success, since they are the responsible for providing the essential
Analysis- Environment
environment for overcoming such an important modification.
Analysis-Economic

Limitation • While many Australian universities’ publicly recognized goals and values related
Recommendation to sustainability, the commitment was not reflected in the vision, mission and
graduate attributes of business faculties or schools within the same institution.
Intro

Literature Review 1. How do the business activities meet the objectives of the mission statements?
Research Questions,
Hypothesis, Methodology 2. How does corporate social responsibility disclosure associate with
Analysis-Mission
sustainability?
Analysis-Social
3. How does efficient use of energy, resources and materials associate with
Analysis- Environment sustainable profitability?
Analysis-Economic

Limitation 4. How does growth of the companies associate with sustainable profitability?
Recommendation
Intro Social
Literature Review Ho1: CSR activities of a company is not positively related with the sustainability of
international companies.
Research Questions,
Hypothesis, Methodology Ha1: CSR activities of a company is positively related with the sustainability of
international companies.
Analysis-Mission

Analysis-Social Environmental
Analysis- Environment
Ho2: DJSI companies do not ensure efficient use of energy, resources and materials.
Ha2: DJSI companies ensure efficient use of energy, resources and materials.
Analysis-Economic

Limitation Economic
Recommendation Ho3: DJSI listed companies do not have higher growth than Non-DJSI listed companies.
Ha3: DJSI listed companies have higher growth than Non-DJSI listed companies.
Intro
Secondary Source of Data
Literature Review Research papers, articles, annual reports and authentic websites such
Research Questions, as; DJSI, investing.com, World Health Organization & last five years’
Hypothesis, Methodology financial
Analysis-Mission
Methodology
Analysis-Social
• MS Excel: Correlation
Analysis- Environment
• SPSS: Cross Tabulation Analysis
Analysis-Economic

Limitation Sampling
Recommendation Stratified random sampling (6 international companies from DJSI list &
20 international companies excluding DJSI list)
Intro
Companies Activities Missions Match/
Literature Review Mismatch
Research Questions, ANZ Wealth Maximization of To achieve better business
Hypothesis, Methodology stockholders and customers and outcomes by maximizing
employee satisfaction. profit
Analysis-Mission
GS E&C Creates different values by Dreaming about Tomorrow
Analysis-Social developing technology under with Clients, Creating New
Analysis- Environment global market to keep their Values for Them
business sustainable
Analysis-Economic
Microsoft Follows the eight UN Sustainable To empower every person
Limitation
Development Goals (SDGs) which and every organization on
Recommendation aims at empowering people and the planet to achieve more
organizations to achieve more
Intro
Companies Activities Missions Match/
Literature Review Mismatch
Research Questions, Linde Improving people’s Leading the global gases & engineering
Hypothesis, Methodology lives through company, admired for people provide
meaningful innovative solutions that make a
Analysis-Mission
innovation difference to the world
Analysis-Social Phillips Integrates Improving people's lives through
Analysis- Environment technologies and meaningful innovation
design into people-
Analysis-Economic
centric solutions
Limitation
GPT Creating value for its Value creation by enabling people to
Recommendation stakeholders excel and customers and communities
to prosper
Intro • Company participated in CSR: noted as 1 • Company DJSI 2012 enlisted: noted as 1
• Did not participate in CSR: noted as 2. • Company DJSI 2012 non-enlisted: noted as 2.
Literature Review
• Sustainable status was also inserted based on current operations of the companies.
Research Questions,
Hypothesis, Methodology

Analysis-Mission

Analysis-Social

Analysis- Environment

Analysis-Economic

Limitation
Recommendation
Intro Why reject null hypothesis 1?
• Correlation between CSR activities and DJSI 2012 enlistment: 61.23% (positively related & sustainable)
Literature Review • Companies are listed under DJSI because they have more CSR than other DJSI unlisted companies (ANZ,
GS E&C, Microsoft, Linde, Philips and GPT)
Research Questions,
Hypothesis, Methodology • Companies neither have CSR nor have enlisted under DJSI, no sign of sustainability (Bit Makers Ltd and
Volkswagen)
Analysis-Mission
Why do not reject null hypothesis 1?
Analysis-Social • Companies have few CSR, so are not listed in DJSI but still sustainable (DEL and Asian Paints)

Analysis- Environment What are the general assumptions?


Analysis-Economic • CSR or DJSI enlistment are not the only reason to measure sustainability
• Further research may be suggested to identify the other reasons
Limitation • Many companies invest on CSR for tax purpose or government regulation or as a part of their promotional
Recommendation activities rather actually fulfilling the true purpose of CSR.
• From overall analysis, null hypothesis 1 is rejected considering positive correlation between two factors
(DJSI and CSR).
Intro
• Company ensures efficient use of energy: noted as 1 • Company DJSI 2012 enlisted: noted as 1
Literature Review • Did not ensure efficient use of energy: noted as 2. • Company DJSI 2012 non-enlisted: noted as 2.

Research Questions, DJSI Enlistment * Efficient Use of Energy, Resources & Materials Cross-tabulation
Hypothesis, Methodology Efficient Use of Energy, Resources &
Materials
Yes No Total
Analysis-Mission Count 6 0 6
% within DJSI Enlistment 1 0 1

Analysis-Social % within Efficient Use of Energy, Resources &


Materials 0.8 0 0.6
Yes % of Total 0.6 0 0.6
Analysis- Environment Count 2 2 4
% within DJSI Enlistment 0.5 0.5 1
Analysis-Economic % within Efficient Use of Energy, Resources &
Materials 0.3 1 0.4

Limitation
DJSI Enlistment No % of Total 0.2 0.2 0.4
Count 8 2 10

Recommendation
% within DJSI Enlistment 0.8 0.2 1
% within Efficient Use of Energy, Resources &
Materials 1 1 1
Total % of Total 0.8 0.2 1
Intro Why reject null hypothesis 2?
• Correlation between efficient use of energy, resources and materials and DJSI 2012 enlistment: 61.24%
Literature Review (positively related & sustainable)
• Companies are listed under DJSI because they have more concerns about efficient use of energy,
Research Questions,
Hypothesis, Methodology resources and materials than other unlisted companies (ANZ, GS E&C, Microsoft, Linde, Philips and GPT)
• Companies less concerned about using energy, resources and materials efficiently & not enlisted under
Analysis-Mission DJSI (GSK and Dell Inc.)

Analysis-Social Why do not reject null hypothesis 2?


• Companies neither listed under DJSI, nor follow energy and resources oriented activities but still
Analysis- Environment sustainable
Analysis-Economic
What are the general assumptions?
Limitation • Efficient use of energy, resources and materials or DJSI enlistment are not the only reason to measure
Recommendation sustainability
• Further research may be suggested to identify the other reasons
Intro

Literature Review

Research Questions,
Hypothesis, Methodology

Analysis-Mission

Analysis-Social

Analysis- Environment

Analysis-Economic

Limitation
Recommendation
Intro
What are the general assumptions?
Literature Review

Research Questions, • Growth and DJSI enlistment of a company is not always positive
Hypothesis, Methodology
• Non-DJSI companies might have higher growth than DJSI companies
Analysis-Mission • The financial growth rate does not have the strong impact for being in the
Analysis-Social DJSI list.
Analysis- Environment

Analysis-Economic

Limitation
Recommendation
Intro

Literature Review • Small sample size


Research Questions, • Only one factor had been considered from each of the three dimensions
Hypothesis, Methodology
• Only secondary data are used for the analysis.
Analysis-Mission

Analysis-Social

Analysis- Environment

Analysis-Economic

Limitation
Recommendation
Intro

Literature Review • Larger sample size


Research Questions, • The combination of multiple factors from each dimension should be used
Hypothesis, Methodology
• More availability of primary data and survey
Analysis-Mission

Analysis-Social • The top management can help in sustainability by constantly focusing on the
Analysis- Environment three sustainable dimensions together
Analysis-Economic
• Business strategies should match with organizations’ mission statements
Limitation
Recommendation rather derailing from their defined objectives.

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