MGT723 Research Project

 

 

 

 

 

Semester 2 2017

Assessment Task 1: Research Proposal

Student Name: Harmeet Singh, (1097208)

Your assigned research Topic:  Agency Theory

Draft Research Question: Is Climate change integrated into business Strategy

Title: Carbon Disclosure Project (CDP)

Submission Date:

 

 

 

 

 

 

 

 

 

 

 

 

Acknowledgement:

I certify that I have carefully reviewed the university’s
academic misconduct policy. I understand that the source of ideas must be
referenced and that quotation marks and a reference are required when directly
quoting anyone else’s words.

 

 

Literature
Review – Summary:

 

 

The Main Objective of this research paper is to
investigate the connection between the effectiveness of Planned, Strategized, implied
company’s decision taken by Board of Directors & supervised by Managers,
and voluntary disclosure of information on Greenhouse Gases, company
contribution to minimising carbon emissions & corporate Social
responsibility.

This research report completely stands on, agency
theory and how it works as a limb of financial wealth, that sight at the
dispute between commending people with a Various interest in the same assets.

This research paper is going to help us know, some interesting facts, more
precisely about the different strategies made by company’s management and how
it is affecting the disclosure score of CDP. It is important for shareholders
to understand, the actual position of a company before they make an investment.

Dispute commend between people
means:

1)   
Companies Managers (Directors), and
Shareholders.

2)   
Shareholders and Partners.

 

These days, Climate change has become a global issue, In
term of the Policy, there is another side of the world affected directly more
than others, it all mediums to regional results and in their agreement with
very diverse legal framework, monetary, social and natural situations (Ans Kolk
& Jonathan Pinkse, 2010).

According to the scholars of the Agency theory (Hill
& Jones, 1992: Ans Kolk & Jonathan Pinkse, 2008: Van den Berghe and Levrau, 2004: Jensen and Meckling),
there are different opinion on company’s board of director’s ability, control
and power on their managers and but agree of their interest, ability and duty
to principal (shareholders). The Managers vital job is to pay attention of the
company by being faithful towards on what they do for the company and act
effectively in the interest on their shareholders for which they will be paid incentives
(Fama and Jensen, 1983).

A board of directors, effectiveness has often had been
related to its independence from management, its leadership structure, the
existence and independence of its committees, meeting frequency and directors
‘attendance (Van den Berghe and Levrau, 2004).

In the particular case of carbon disclosure, managers
confront a trade-off between the advantages and expense of participation in and
divulgence of emission level to the CDP yearly survey. From one viewpoint, the
demand by environment groups and institutional investors for extra exposure
about an associations’ activities to oversee environmental changes may weight
managers to intentionally unveil this data to the CDP to bring down specific
risk.

It is really important
for the shareholders to know the condition of the company so that they
can invest their money accordingly (Hill &
Jones, 1992).

 

 

Conceptual
Model:

 

1-   
Hierarchy
Table.

2-   
Basic
graphic Model.

 

1)   
Hierarchy
table

Above
is Hierarchy Table describe the conceptual model of research papers.

 

 

 

 

 

 

 

 

 

 

2)   
Basic Graphic model

 

 

 

Above shown is Conceptual model description

GICS-
Global Industry Classification Sector

 

 

 

 

Hypotheses:

 

There’s a significant connection between the
carbon disclosure score and whether the climate change is integrated into
business strategy.

 

Proxy
Measures for Theoretical Constructs:

 

 

 

Theoretical Construct

Proxy measure

Dependent (DV), Independent (IV), or Control
Variable (CV)

Source

Voluntary Disclosure.

Carbon Disclosure Scores (Percentages).

Dependent Variable (DV).

CDP Survey.

Integrated to business Strategy or not.

Integration of climate change into business Strategy.

Independent Variable(IV).

CDP Survey.

Country – USA,
Energy, Financial, IT.

 GICS Sector.

Control Variable(CV).

CDP Survey.

 

 

 

Research
Method:

 

Disclosing information on carbon emissions can be ideal way or
instrument by which positive image of a company can be created or for
satisfying the external demand for improved transparency (Brouble and Harrington,
2010).

Exactly 5055 in total, companies have participated in CDP
survey 2016, 100 companies as a sample out of total population of 5055, will be
selected by applying the dependent variable, control variable, and an independent
variable. All 100 Companies which will be selected and studied from CDP survey
data, are classified by the GICS, and includes only Energy, Finance and IT, Sector
from country USA.

 

The Selection process report will consist or represent their,

Independent variable – firm or industry considered as an
independent variable.

Dependant variable – voluntary disclosure of carbon emission.

Control Variable – USA Companies in GICS (Global industry
Classification Standard) sector.

 

Secondary data will be used in these research papers for
testing the hypothesis (There’s a significant connection between the carbon
disclosure score and whether the climate change is integrated into business
strategy), Data will be mainly collected from CDP Survey, the SPSS digital
computerised research software, will be used to create a model which will help
in analysing, studying, testing, and helping in driving conclusion.

 

 

 

 

 

References:

 

Jensen,
M. C. and W. H. Meckling: 1976, ‘Theory of the Firm: Managerial Behavior,
Agency Cost, and Ownership Structure’, Journal of Financial Economics 3,
305–360.

Kolk,
A., D. Levy and J. Pinkse: 2008, ‘Corporate Responses in an Emerging Climate
Regime: The Institutionalization and Commensuration of Carbon Disclosure’,
European Accounting Review 17(4), 719–745.

Charlcs W. L. Hill, Department of Management
and Organization, School of Business Administration, DJ-10, University of
Washington, Seattle, Washington 98195, USA.

 

Walid Ben-Amar* and Philip Mcllkenny: 2015,
‘Board effectiveness and the Voluntary Disclosure of climate change
Information’, Telfer school of Management, University of Ottawa, Ottawa, ON,
Canada, ‘Business Strategy and the environment’, Bus. Strat. Env.24, 704-719
(2015).

 

Published online 24 January 2014
in Wiley Online Library.

Van den Berghe, L. A. A, and Levrau, A. (2004),
Evaluating Boards of Directors: what constitutes a good corporate board?
Corporate Governance: An International Review, 12: 461–478.

 

Brouhle K., Harrington D. R. (2010). GHG Registries:
Participation and performance under the Canadian Voluntary Climate Challenge
Program. Environmental & Resource Economics, 47, 521-548.