Determinants of corporate social project - MyAssignmenthelp.com

Question: Discuss about the Determinants of a corporate social project. Answer: Introduction: A long-standing debate is always there regarding the linkage between the environmental performance of the corporate and the firms performance (Endrikat, Guenther and Hoppe 2014). This research report provides a research framework to analyze the effect of climate change on the firms performance and efficiency considering the Climate Disclosure Project (CDP) and integrating the legitimacy theory. This research framework will provide details on the conceptual framework for developing the research on climate change with the help of CDP data and legitimacy theory and along with this; it will establish the hypothesis and proxy measures. Literature review: Recently it has been observed that various research papers use CDP data and the legitimacy theory is one of the most applied theory with respect to the CDP disclosure in order to assess the firms policy for inclusion of the climate change (Dahlmann, Branicki and Brammer 2015). Legitimacy theory confronts that if a firm were conforming to its environmental and social expectations, then it would display enough in order to avoid scrutiny (Fernando and Lawrence 2014). In order to meet the requirement of the institutional investors, applying legitimacy theory with the CDP disclosure will lead towards a prediction that the organisation will display the minimum amount of its necessary (Filatotchev and Nakajima 2014). CDP disclosures can also be applied in the context of accounting, which will aid to assess the stakeholder power and ability of the firm. Legitimacy theory also aids to assess the Green House Gas emission and social performance of the firm making it one of the best tool analyze and compare the firms performance with climate change. Conceptual framework: Environmental performance of a firm has been one of the main accelerators, that have given fume to various empirical researches and mixed results have been perceived from the previous works (Lee et al. 2015). Figure 1: Conceptual model Source: (Created by Author) In this research framework, there are three independent variables and one dependent variable along with a control variable. It has been considered that carbon disclosure score is the dependent variable, which is according to the CDP disclosure is dependent upon the integration of climate change in business, internal price of carbon and future consideration of risk, making them the independent variable for this research framework. This research framework considers that size of the firm is one of the main factors that control the carbon disclosure score, this it will be considered as the control variable. Hypothesis: H0: There is no relationship between the independent variables and dependent variables H1: Integration of climate change in business, internal price of carbon and future consideration of risk positively affects the Carbon disclosure score of a firm Regression analysis will be used in this research framework to analyze the taste hypothesis. With 5% level of significance, if the p value is less than 0.05, then H0 will be rejected and H1 will be accepted (Park 2015). The research will use the data from 1047 companies, which are available from the CDP disclosure. Over the time, CDP changes their questionnaire and the responses from the firms are in constant flux. Moreover, the responses of the firm according to the CDP are discretionary compared to CSR report making it one of the ideal sources to analyze and compare the firms climate change responsibility. Proxy measures: In order to measure the Carbon Disclosure Score of the firm, this research framework will use the CDP data as the proxy. It will aid the researcher to trace the carbon disclosure of the firm and voluntary disclosure of Green House Gas emission . Besides this, the research framework will utilize the age of the firm to determine its environmental disclosure (Juhmani 2014). Additionally it will guide the researcher to assess its future risk consideration to downsize the carbon emission. Conclusion: Climate change is one of the most important issues around the world. It is a common believe that climate change alters the firms economic and social performance. To analyze the firms economic and environmental performances, corporate responses is a useful tool owing to the fact that it will guide the researches to trace out how well a firm has introduced social responsibility in its business model. Using the CDP disclosure, this research will try to achieve the desired objective. This research framework will take CDP disclosure data of 1047 companies and construct the climate change risks and values in a proper way. Reference: Dahlmann, F., Branicki, L. and Brammer, S., 2015, January. Shooting for the Moon? Relationships between Corporate Environmental Aspirations and Achievements. InAcademy of Management Proceedings(Vol. 2015, No. 1, p. 15994). Academy of Management. Endrikat, J., Guenther, E. and Hoppe, H., 2014. Making sense of conflicting empirical findings: A meta-analytic review of the relationship between corporate environmental and financial performance.European Management Journal,32(5), pp.735-751. Fernando, S. and Lawrence, S., 2014. A theoretical framework for CSR practices: integrating legitimacy theory, stakeholder theory and institutional theory.Journal of Theoretical Accounting Research,10(1), pp.149-178. Filatotchev, I. and Nakajima, C., 2014. Corporate governance, responsible managerial behavior, and corporate social responsibility: organizational efficiency versus organizational legitimacy?.The Academy of Management Perspectives,28(3), pp.289-306. Juhmani, O., 2014. Determinants of corporate social and environmental disclosure on websites: The case of Bahrain.Universal Journal of Accounting and Finance,2(4), pp.77-87. Lee, V.H., Ooi, K.B., Chong, A.Y.L. and Lin, B., 2015. A structural analysis of greening the supplier, environmental performance and competitive advantage.Production Planning Control,26(2), pp.116-130. Park, H.M., 2015. Hypothesis testing and statistical power of a test.