Carbon Emission Reduction: Management Responsibility and Stakeholder Theory

MGT723 Research Project
Assessment Task 2: Data Collection
Student Name: Diksha Gautam
Title: Carbon Emission Reduction
Submission Date: 14/09/2018

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.
Note that you are permitted to change your research question and hypothesis as your
research project develops over the semester. If you make changes you should note,
however, that you will need to update your conceptual model, hypothesis, theoretical
constructs and proxy measures accordingly. Although these not assessed directly, your
submission in Task 2 and Task 3 will be evaluated in the context of your stated conceptual
model etc.
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Introduction
This paper talks about does higher influence of Management’s Responsibility for climate
change within an Organization helps to reduce carbon emission. Management are ones who
handle organizations. Managers and Board of Director (BOD) are expected to reduce
emission in the organization and provide awareness of the physical, political and social risks
originate from the impacts of climate change (Wittneben and Kiyar, 2018)
Literature Review – Summary
Carbon emissions are increasing rapidly in developing countries because of the international
climate change mitigation treaty of Kyoto Protocol. There is increase from 33% to 40% in
1990 and 1997 respectively. Kyoto Protocol is negotiated in 1997 and it commits signatories
to achieve specific greenhouse gas (GHG) or carbon emission reduction targets (Kalu, Buang
and Aliagha, 2016). The four-determinant factor such as Social factor, economic factor, the
financial market factor and the institutional factor are included for carbon emissions
reduction. Because of the attendant implication of climate disasters developing countries
like India, China, Colombia, Malaysia and others must face increasing rate of carbon
emissions which can be move up to 70%. Due to this, developing country should make
contribution in any form of mitigation program for the achievement of success (Kalu, Buang
and Aliagha, 2016).
Management responsibilities are one due to which there will be reduction in carbon
emission. Due to the proper management actions it helps to reduce carbon emission and
helps to observe how company can respond pressures in a global organization (Lane, 2010).
If there will be explore of management actions by the Board of Director or by the manager
of the organization related with air travel of employees, by drawing how managerial
practice can affect organization’s environmental impact (Fraser, 2012). In London,
management introduce an internal EMCS to reduce carbon emission for Beta’s Company. In
that analysis they also compare that whether management incentives influence travellers or
not due to which there will be reduction in carbon emission. When management actions
were taken in the Beta’s company by following the steps like understanding the significant
clients, identifying travellers in terms of carbon impact, producing carbon impact statement
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with individual traveller, identifying significant travel routes in terms of carbon impact, to
reduce journey work with top travellers, by introducing incentive scheme to encourage
travellers, increasing the awareness as well as use of technology and lastly improving use of
communication channels there was reduction in carbon emission. Therefore, due to
management responsibility in an organization by following management incentive there will
be reduction in carbon emission (Giacomo, Guthrie and Farneti, 2017).
Stakeholders are the individuals who can affect the firm or who the actions of the
corporation can affect. Stakeholders comprise the workers, clients, competitors, and
creditors. The stakeholder theory posits that the corporations are responsible to not only
shareholders but to a group of stakeholders, which is broad (Bridoux and Stoelhorst, 2014).
According to Bridoux and Stoelhorst (2014), Edward Freeman is the one who proposed the
stakeholder theory. Edward Freeman acknowledged the theory as an essential component
of Corporate Social Responsibility. Corporate social responsibility (CSR) identifies the
companies’ responsibilities, which are philanthropic, ethical, and economic. The stakeholder
theory posits that the managers of the companies are supposed to take care of all the
stakeholders of the firm when making governance decisions. The managers should reduce
conflict that exists between the interests of the stakeholders (Kuo, Yah and Yu, 2012)
Therefore, from this review we can conclude that there is relation between management
responsibilities for climate change in an organization, relation with stakeholder to reduce
carbon emission.
Conceptual Model
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Management Responsibility
(Independent Variable)
Carbon Emission Reduction
(Dependent Variable)
Management Incentives
(Moderating Variable)

Hypotheses
Higher the influence of Board Responsibility for the climate change in an organization higher
will be carbon emission reduction.
Data Collection
This paper uses descriptive and inferential statistics to investigate the relationship between
dependent and independent variables. The dependent variable is Carbon Emission
Reduction and independent variable is Board Responsible. Management Incentive is
moderating variable.
For the propose of this paper, only 5 most polluter’s countries China, India, Japan, Russia
and USA are included and rest are excluded from the data. Among 55 countries only 5
countries are taken in this paper. From 2011-2017 data are eliminated from 2294 samples
to 847. Data are selected from Carbon emission reduction for the year 2012. All the missing
data, unappropriated data are also deleted from the excel sheet.
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Data Analysis - Descriptive
Table 1 represents the five countries frequency of 847 samples. China, India, Japan, Russia
and USA are five main polluter’s countries where carbon emission reduction is mostly
important. China has frequency of 29 with 3.4%, India has frequency of 47 with 5.5%, Japan
has frequency of 146 with 17.2%, Russia has frequency of 4 with 0.5% and USA has
frequency of 621 with 73.3%. USA is main polluted country where Russia is least polluted
country among the sample. USA is one where carbon emission reduction is important.
Country Frequency Percent Valid Percent
Cumulative
Percent
Valid China 29 3.4 3.4 3.4
India 47 5.5 5.5 9.0
Japan 146 17.2 17.2 26.2
Russia 4 .5 .5 26.7
USA 621 73.3 73.3 100.0
Total 847 100.0 100.0
Table 1 Frequency of Countries
Figure 1 shows pie chart of five countries. From the pie chart we can conclude that carbon
emission should be reduced in USA as compare to other countries. USA has higher
percentage of pollution than other countries so carbon emission reduction should be focus
on USA where as Japan is also one where carbon emission should be reduced. Figure 1 also
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