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MGT723 Research Project Semester 1 2018 Assessment Task 3: Report Student Name: Neha Title: legitimacy theory Assigned research topic: Is climate change integrated into business strategy Submission...

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MGT723 Research Project
Semester 1 2018
Assessment Task 3: Report
Student Name: Neha
Title: legitimacy theory
Assigned research topic: Is climate change integrated into business strategy
Submission Date: Saturday, 21 july,2018
Question: Is there is any relationship between Ca
on disclosure score and inclusion of climate change strategy in business?
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.
Introduction: (Not assessed)
Climate change is often considered to be today's most important environmental challenge, and the scientific evidence increasingly points toward man-made emissions of ca
on dioxide as a cause of the problem. The first approach concerns performance in terms of output, direct and indirect greenhouse gas emissions, while the second one is based on environmental intention of mitigating climate change, including climate change policy and emission reduction initiatives. The Climate Performance Leadership Index is employed as a measure for climate change disclosure level, incorporating initiatives contributing to climate change mitigation, adaptation and transparency.
Literature Review: (Has been condensed from task 2 for task 3)
Literature on legitimacy theory recommends that communication is one procedure of legitimation (Gray, 1995a and Gray, 1995b). The yearly report has been viewed as the significant communication medium and data source for scientists examining inspirations for natural disclosures. According to our findings, environmental performance for both adopted approaches entails a positive effect on climate change disclosure, a result that is consistent with voluntary disclosure theory.  (Buhr, 1998 , p. 164) states that “the annual report is the most commonly accepted and recognized corporate communication vehicle”. O’Donovan, suggests that corporate management believe that the annual report is an effective way of informing and educating the public of the corporation’s view of certain environmental issues XXXXXXXXXXGuthrie point out that “the credibility of the annual report to relevant public provides organizational managers with a unique opportunity to design a particular organizational image for their relevant public” (Guthrie, 1989, p. 344).Hooghiemstra argues that companies use corporate social reporting as a corporate communication instrument (Hooghiemstra, XXXXXXXXXXTo achieve the ca
on emission targets and avoid the fines, companies could invest in their ca
on reduction management system by using low emission energy, equipment, and/or by developing low ca
on technology.
The main aim of this instrument is to influence people’s beliefs of the company. Deegan, argue that companies consider that social disclosure in annual report is a useful device to reduce the effects upon a corporation of events that are perceived to be unfavourable to a corporation’s image (Deegan, XXXXXXXXXXO'Donovan points out that most of the research, which conducted to confirm legitimacy motives for social disclosures has used ex-post content analysis of annual reports and / or other published data, is limited in usefulness as they only allow for explanations about data that were disclosed (O'Donovan, XXXXXXXXXXSome studies have focused upon the data gathered by (questionnaires-interviews publicly available data or documents). A few researchers for example, (Buhr, 1998 and O’Donovan, 1999) have used methods to gather qualitative data by the direct questioning of managers for the purposes of testing legitimacy theory. (O'Donovan, XXXXXXXXXXargues that gathering data, directly from management, about their beliefs and from ex-ante perspectives is more useful in evaluating reasons for certain environmental disclosure and, more importantly, why decisions not to include environmental information were made. The author (Gray, 1995b) argue that differences in research approach and the difficulties in showing these differences in method consider one of the problems, which arises in attempts to research the phenomenon of social and environmental reporting. The analysis of (Guthrie, 1989) has failed to support legitimacy theory as an explanation for corporate social reporting. Many studies (Brown, 1998; Buhr, 1998; O'Donovan, 2002 ; O’Donovan, 1999) report that environmental disclosure strategies of management appeared to be tied to the extent of media attention devoted to environmental issues. Legitimacy theory hypothesis that an organization's survival relies upon getting and looking after social endorsement. An organization ought to acknowledge responsibility for the social and environment implications of its operations. On the off chance that it neglects to agree to requests of society, an organization will confront dangers to its authenticity furthermore, later to its survival. Organizations are confronting expanding weights to openly be their environment performance.
Conceptual Model: (Not Assessed)
Conceptual frameworkINDEPENDENT VARIABLE:
Inclusions of climate change issues in business strategies
DEPENDENT VARIABLE:
XXXXXXXXXXDISCLOSURE SCORE
CONTROL VARIABLE: Companies including climate change in business strategy
1ST 30: YES
1st 30: NO
1ST 30: NO
Figure 1 Conceptual model showing IV, DV and CV
Hypotheses:
H0: There is no relationship between ca
on disclosure score and integrated climate change in business strategy.
H1: There is meaningful relationship between ca
on disclosure score and integrated climate change in business strategy.
Proxy measures:
Table 1: Illustrating Proxy measures
    Theoretical
Construct
    Proxy measure
    Dependent (DV),
Independent (IV), or
Control Variable
(CV)
    Source
    Voluntary
Disclosure
    Percentage
Disclosure score
CDP data
    Dependent Variable
    CDP
    Inclusion of climate change into business strategy
    Companies reporting to Ca
on disclosure project
    Independent
Variable
    CDP
    Scale of companies
    First 60 companies divided into:
Ist 30: yes
Ist 30: no
    Control variable
    CDP
Data Analysis – Descriptive (Not assessed)
To analyse the data and comparison descriptive data analysis is being applied in research paper. Descriptive data analysis is reformed to be one of the best form to analyse and tabulate the collective samples from the set of data provided in CDP. To measure the central tendency results is to analyse the differences from data collection Mean, Median, Mode are used. Skewness and range is used to box plot the results of data collection.
Based on two underlying parameters for the assigned question, the research proceeds in analysing the data by SPSS Representation using descriptive analysis. The two underlying parameters for analysing the descriptive data are as follows-
1. Is climate change integrated in the business strategy and how does it affect the ca
on disclosure score?
2. Is Climate change not integrated into the business strategy and how does it affect the ca
on disclosure score?
Table 2. Companies where climate change is included in the business strategy
    COMPANIES RESPONDING YES
    MEAN
    90.9
    MEDIAN
    97
    MODE
    100
    MAXIMUM
    100
    MINIMUM
    0
    RANGE
    100
    STANDARD DEVIATION
     XXXXXXXXXX
    SKEWNESS
     XXXXXXXXXX
    KURTOSIS
     XXXXXXXXXX
    SUM
    2727
    COUNT
    30

The above table 1 indicates the descriptive of emission level based on where climate change is integrated into the business strategy with positive response. Mean of the companies responding yes is 90.9 is higher which says that these companies emit high level of emission. The standard deviation is low in these companies which means the data is normally distributed. The range in yes in this data is 100 which means there is great dispersion in data. The skewness is -4.07(as it is <0) which indicate the distribution is highly negatively skewed and far from symmetrical. However, positive kurtosis (distribution >3) suggest that distribution is leptokurtic and has longer and flatter tails and its central peak is higher and sharper.
    
Table 2. Companies where climate change is not included into the business strategy
     COMPANIES RESPONDING NO
    
    MEAN
    47.3
    MEDIAN
    49.5
    MODE
    0
    MAXIMUM
    99
    MINIMUM
    0
    RANGE
    99
    STANDARD DEVIATION
     XXXXXXXXXX
    SKEWNESS
     XXXXXXXXXX
    KURTOSIS
     XXXXXXXXXX
    SUM
    1419
    COUNT
    30
The above table 2 indicates the descriptive of emission level based on where climate change is not integrated into the business strategy with negative response. Mean of the companies responding no is 47.3 which is lower than the yes responding companies which means data is not normally distributed. The range in no responding data is 99 which not a significant difference according to the yes responding companies. The skewness is XXXXXXXXXXas it is <0) which says that the distribution is slightly negatively skewed. Whereas, in this companies where climate change is not integrated in the business strategy shows negative trend and If the kurtosis is less than zero, then the distribution is light tails and is called a platykurtic distribution.
Data Analysis – Inferential (ASSESSED)
Table 4 Paired Samples Statistics
Table 5 Paired Sample Co
elations
Table 5 Paired Sample test
Hypothesis testing (ASSESSED):
P value rejection rule is applied to test hypothesis (C, XXXXXXXXXXThis rule state as:
P value or sig value < .05 (alpha) (reject the null hypotheses)
            O
P value > 0.05 (accept the null hypotheses)
Application of rule:
.000< .05
So, reject the null hypothesis (C, 2018).
H0: There is no relationship between ca
on disclosure score and integrated climate change in business strategy. (Rejected because p value is smaller than alpha)
H1: There is meaningful relationship between ca
on disclosure score and integrated climate change in business strategy. (Accepted because p value is smaller than alpha)
In the table paired samples test significant is .000 which is less than alpha .05 which means null hypothesis is rejected and H1 is accepted. There is significance relationship between ca
on disclosure score and inclusion climate change issues in business strategy
Discussion (ASSESSED)
The allocated theory for this research was legitimacy theory. legitimacy theory (Deegan 2009; Deegan & Gordon 1996; Deegan & Rankin 1996; Patten 1991, 1992; Patten 2002) posits that an organisation is operating within norms or standards which have been identified in the “social contract” between the organisation and the community members. Therefore,
Answered Same Day Jul 24, 2020 MGT723

Solution

Prasenjit answered on Jul 29 2020
104 Votes
CD
    Name    Country (Company)    GICS Sector (Company)    2015 Disclosure Score is public    2015 Disclosure score    2017 CC2.2. Is climate change integrated into your business strategy?
University of the Sunshine Coast: 1 = Yes
2 = No
        Name    Country (Company)    GICS Sector (Company)    2015 Disclosure Score is public    2015 Disclosure score    2017 CC2.2. Is climate change integrated into your business strategy?
University of the Sunshine Coast: 1 = Yes
2 = No
    Axel Springer SE - Climate Change 2015    Germany    Consumer Discretionary    Yes    37    2        Dentsu Aegis Network - Climate Change 2015    United Kingdom    Consumer Discretionary    Yes    97    1
    ProSiebenSat.1 Media AG - Climate Change 2015    Germany    Consumer Discretionary    Yes    0    2        Sky UK Limited - Climate Change 2015    United Kingdom    Consumer Discretionary    Yes    97    1
    Schibsted ASA - Climate Change 2015    Norway    Consumer Discretionary    Yes    97    2        Compass - Climate Change 2015    United Kingdom    Consumer Discretionary    Yes    97    1
    Pendragon - Climate Change 2015    United Kingdom    Consumer Discretionary    No    0    2        Continental AG - Climate Change 2015    Germany    Consumer Discretionary    Yes    94    1
    Rightmove - Climate Change 2015    United Kingdom    Consumer Discretionary    Yes    0    2        Daimler AG - Climate Change 2015    Germany    Consumer Discretionary    Yes    100    1
    SuperGroup - Climate Change 2015    United Kingdom    Consumer Discretionary    Yes    75    2        Ford Motor Company - Climate Change 2015    USA    Consumer Discretionary    Yes    97    1
    Newell Ru
ermaid Inc. - Climate Change 2015    USA    Consumer Discretionary    Yes    51    2        General Motors Company - Climate Change 2015    USA    Consumer Discretionary    Yes    100    1
    Staples, Inc. - Climate Change 2015    USA    Consumer Discretionary    Yes    94    2        Goodyear Tire & Ru
er Company - Climate Change 2015    USA    Consumer Discretionary    Yes    97    1
    GameStop Corp. - Climate Change 2015    USA    Consumer Discretionary    No    0    2        Mattel, Inc. - Climate Change 2015    USA    Consumer Discretionary    Yes    87    1
    Scripps Networks Interactive Inc. - Climate Change 2015    USA    Consumer Discretionary    Yes    76    2        Ekornes ASA - Climate Change 2015    Norway    Consumer Discretionary    Yes    97    1
                Statistics                            Statistics
                No                            Yes
                N    Valid    10                    N    Valid    10
                    Missing    0                        Missing    0
                Mean        43                    Mean        96.3
                Median        44                    Median        97
            Consumer Discretionary    Std. Deviation        40.99593                    Std. Deviation        3.6833
                Skewness        0.083                    Skewness        -1.982
                Std. E
or of Skewness        0.687                    Std. E
or of Skewness        0.687
                Kurtosis        -1.93                    Kurtosis        5.011
                Std. E
or of Kurtosis        1.334                    Std. E
or of Kurtosis        1.334
                Range        97                    Range        13
                Minimum        0                    Minimum        87
                Maximum        97                    Maximum        100
                Percentiles    25    0                    Percentiles    25    96.25
                    50    44                        50    97
                    75    80.5                        75    97.75
FI
    Name    Country (Company)    GICS Sector (Company)    2015 Disclosure Score is public    2015 Disclosure score    2017 CC2.2. Is climate change integrated into your business strategy?
University of the Sunshine Coast: 1 = Yes
2 = No
        Name    Country (Company)    GICS Sector (Company)    2015 Disclosure Score is public    2015 Disclosure score    2017 CC2.2. Is climate change integrated into your business strategy?
University of the Sunshine Coast: 1 = Yes
2 = No
    Boardwalk REIT - Climate Change 2015    Canada    Financials    Yes    79    2        Barclays - Climate Change 2015    United Kingdom    Financials    Yes    99    1
    Laurentian Bank of Canada - Climate Change 2015    Canada    Financials    Yes    0    2        HSBC Holdings plc - Climate Change 2015    United Kingdom    Financials    Yes    100    1
    Close Brothers Group - Climate Change 2015    United Kingdom    Financials    No    0    2        JPMorgan Chase & Co. - Climate Change 2015    USA    Financials    Yes    100    1
    Provident Financial plc - Climate Change 2015    United Kingdom    Financials    Yes    95    2        Manulife Financial Corp. - Climate Change 2015    Canada    Financials    Yes    93    1
    Jardine Lloyd Thompson Group Plc (JLT) - Climate Change 2015    United Kingdom    Financials    No    0    2        McGraw Hill...
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