Environmental Performance and Voluntary Disclosure

This assignment delves into the relationship between a company's environmental performance and its willingness to voluntarily disclose information about its sustainability efforts. It utilizes a conceptual framework to illustrate the interconnectedness of dependent and independent variables, including theoretical constructs, operational proxies, and stakeholder identification. The aim is to understand how voluntary disclosure can impact financial performance and address environmental concerns.

CONTEMPORARY ISSUES IN ACCOUNTING

ACKNOWLEDGEMENT
I acknowledge that all the policies related with academic misconduct are properly being
understood and followed by me while developing this research proposal. The content developed
for this report by me is original which is not related with other individual’s ideas. However, the
ideas which were expressed by others are properly references in the assignment.

TABLE OF CONTENTS
ACKNOWLEDGEMENT...............................................................................................................2
INTRODUCTION...........................................................................................................................4
PRACTICAL MOTIVATION.........................................................................................................5
THEORETICAL MOTIVATION...................................................................................................6
LITERATURE REVIEW................................................................................................................7
HYPOTHESIS.................................................................................................................................9
CONCEPTUAL FRAMEWORK OF THE REPORT...................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present time rapid changes in the technology, commercials, social developments and
increasing population is becoming a big question for environment sustainability. The question
which arises is whether the companies growing in the market are paying appropriate amount of
allowance for the harm of environment or are they going green so that they can protect
environment (Hummel and Schlick, 2016). The case study discusses about the way the corporate
firms are increasing which is becoming responsible for the increase in carbon radiation which is
harming the environment due to which atmosphere is getting affected. Increase in the carbon
radiation is causing climate changes across the world. Increase in carbon radiation is affecting
the Ozone layer due to which ultra violet rays are entering directly into the environment and are
having huge impact on the health of the people living in the environment. It is required that the
companies should understand their corporate social responsibilities and develop the mechanism
which could help in the environmental protection aspects (Oates and Moradi-Motlagh, 2016).
Hence, a research proposal is developed which will be based upon stakeholders theory with the
effect of which relevant set of information related with environmental protection aspects could
be taken into consideration. The report will also include information related with theoretical and
practical information related with the aspects of motivation which will help industries in
remaining motivated in protecting the environment and helping in the environmental
sustainability aspects (Jones and Ratnatunga, 2012).

PRACTICAL MOTIVATION
Increase in the level of carbon radiation can be noticed day by day which is becoming a serious
issue for the environment at international level due to which climatic changes are occurring and
atmosphere is getting affected (Hummel and Schlick, 2016). With the help of various studies it is
being evaluated that corporate s are the main bodies which are affecting the environment and are
performing a main role in enhancing carbon radiation in the atmosphere. It is required that the
concept of Corporate Social Responsibility should be taken into consideration so as to monitor
the activities of various corporate and understanding the roles and responsibilities they play to
manage all the environmental aspects and protecting the same from getting affected (Dávila,
Epstein and Manzoni, 2016). The report will undertake all the aspects which could help the
companies in understanding there corporate social responsibilities towards to protect the
environment and evaluating the ways with the help of which they can reduce carbon emission.
The research proposal will help in evaluating all the ways with the help of which companies
available in the market could evaluate the ways with the effect of which they can manage to
reduce the carbon emissions (Bagnoli and Watts, 2016). Importance of environmental
sustainability will also be focused upon by the researcher. Several literatures will be reviewed to
evaluate which will help in providing a set direction working on which will help the companies
in protecting the environment and will help them in making an effective set of contribution in the
reduction of carbon radiation and will provide a direction to spread environment sustainability
(Sunderasan, 2013).

THEORETICAL MOTIVATION
Aim of the research is to gather a relevant set of information related with environmental
sustainability in which information related with the ways which could be adopted by the
companies in the environmental sustainability aspects will be focused upon (Oates and Moradi-
Motlagh, 2016). It is being evaluated that carbon radiation and the other gases emitted by the
industries is affecting the ozone layer. This emission of carbon radiation and emission of the
gases is leading to increase pollution due to which various serious diseases are also getting
increased. With the help of the information gained from various previous researches problem
related with the carbon emission and increasing pollution will be resolved (Jong-Seo Choi,
2010). Stakeholder’s theory will be reviewed so as to gather relevant set of information related
with the role they will play in managing environmental sustainability aspects. This will help in
proving the efficiency of the environment and will help in providing a set direction with the
effect of which companies as well as industries available could reduce carbon emission and
could help in managing all the environmental sustainability aspects. The report will also include
information related with the effect of carbon radiation on the non financial performance of the
companies along with the financial performance (Jones and Ratnatunga, 2012).

LITERATURE REVIEW
Environment sustainability is one of the aspects which are required to be taken into consideration
by the people available in the market. It is required that the business should work towards to
evaluate all the possible solutions which could help in spreading a sustainable environment and
could help in managing things in a proper way. It is required that businesses should adopt the
strategies which could help in the reduction of carbon radiation and emission of various harmful
gasses which are affecting the environment. Greenhouse gases are the gases which traps the heat
in the air (Hummel and Schlick, 2016). There are various set of greenhouse gases which are
affecting the environment and are spreading due to various human activities like fossil fuels and
various other natural processes. There are various type of greenhouse gases which are entering
into the environment by the activities of human and by various other natural processes these
gases are Ozone (O3), Nitrous Oxide (N2O), Methane (CH4), Water Vapour and Carbon
Dioxide (CO2). The financial aspects of the companies are getting affected due to increase in the
carbon radiation (Dávila, Epstein and Manzoni, 2016). Increase in such type of harmful gases is
leading to increasing the financial burden of the companies and also leading to increasing
pollution in the environment. Companies are working towards to develop some or the other
strategies with the help of which carbon emission could get reduced due to which cost of
monitoring he carbon radiation level is increasing. Companies also remain indulged in the
activities with the help of which losses which are occurring could get reduced. Agents plays a
vital role in gathering relevant set of information and evaluating ways with the effect of which
targets of the company could be achieved within the time frame decided by the company
(BEYER and GUTTMAN, 2012). With the help of stakeholders theory it could be evaluated that
stakeholders attached with the company plays a very vital role in managing the work process and
evaluating all the aspects which could help in the protection of the environment. It is necessary
that all the stakeholders should be focused upon by the company and a trial should be made with
the help of which company could provide effective set of contribution in the environmental
sustainability aspects (Bagnoli and Watts, 2016). It is required that companies should develop a
proper list of stakeholders who can help in managing the environment sustainability and could
provide proper set of support in reducing the cost which is occurring in the keeping a track
record on the level of carbon radiation. According to the theories stakeholders plays a very vital

role in managing the cost which will indulge in the projection of carbon emission and various
other gases. Employees, government, society, owner and customer are some of the stakeholders
who can make a positive contribution in the environmental sustainability aspect (Wen, 2012).
Employees of the company could take a control over all the activities like reducing the use of
electronic items, saving energy by reducing the wastage of it, plantation of trees in the premises
wherever they could be planted, increasing the men power means working manually rather on
the aspects wherever possible and developing some or the other innovative ideas with the effect
of which carbon emission could be reduced and further work could get managed in a proper way.
Car and Bike pooling is one of the most effective strategies with the effect of which employees
working in the companies could make their effective contribution in environmental sustainability
aspects and reducing pollution (Sunderasan, 2013).
Government helps in developing the policies and protocols related with environmental
sustainability aspect. It develops the policies related with environmental sustainability aspects
which are required to be followed by every single person so as to manage the work in an
appropriate way (Oates and Moradi-Motlagh, 2016). It is required that companies should include
all the environmental related policies in the internal policies and should ensure that every single
employee and member attached with the companies should follow these policies in a proper way.
Government could also make a positive contribution and could help the companies in protecting
the environment and reducing carbon radiation. Providing proper set of funds or equipments at a
minimum cost will help the industries in reducing the cost and will help in maintaining the
financial position in the market (Jong-Seo Choi, 2010).
Owner of the company plays a very vital role in environmental sustainability aspects, there are
many of the things which are required to be focused upon which could provide better solution in
financial management aspects (Jones and Ratnatunga, 2012). Managing finances is a typical task
when it comes to environmental sustainability but by providing right guidance to the employees
and other stakeholders could help companies in keeping a proper track record on the level of
carbon radiation. Indulging in such type of activity will also help in providing a better solution in
managing the company accounts. Processing the things in a right way and choosing appropriate
path will help companies in managing their fund and placing the same in a right order (Hummel
and Schlick, 2016).

Financial analysts should try to work on various set of aspects which could help in saving the
cost of firm. Environmental sustainability is the aspect which include huge cost and it is required
that companies should make an effective set of contribution to protect the environment in this
condition it is required that financial analysts should make effective set if contribution in
managing the funds (Hassan, 2015). Developing the strategies with the help of which the cost of
processing the work could get reduced will help in providing a relevant set of support to the
companies in making a more effective contribution in environmental sustainability aspects with
the effect of which company will attain success in achieving the set targets and goals.
Hence, it could be evaluated that stakeholders plays a very vital role in environmental
sustainability aspects in which it is required that company should try to motivate them and
provide appropriate set of guidance with the help of which they can indulge in the environmental
sustainability aspects and could help in resolving the accounting issues of the company in a
proper way (Dawkins and Fraas, 2010).
HYPOTHESIS
Evaluating various aspects by reviewing various literatures disclosure of the impact of carbon
radiation on the performance of company’s financial and non financial aspects could be done. It
is necessary that the company should make appropriate set of decision in managing the regular
investments in environmental sustainability aspects. Such type of activities helps in managing
financial performance (Dawkins and Fraas, 2009). There are certain set of hypothesis which are
being evaluated in relation with the research these are:
H1: The relationship between the impacts of increasing level of carbon radiation on the financial
performance of the company.
H2: Role played by the stakeholders in making strong financial position of the company and
contribution they can make in environmental sustainability aspects (Dávila, Epstein and
Manzoni, 2016).

CONCEPTUAL FRAMEWORK OF THE REPORT
(BEYER and GUTTMAN, 2012)
The conceptual framework provided in the above diagram shows the dependent as well as
independent variables. Theoretical construction is being provided by the researcher in relation
with the research which includes operational proxies along with the dependent and independent
variables. It could be seen that all the aspects are interconnected which helps in resolving the
objectives of the organisation. The main targets and objectives attached with the organisation is
to resolve all the accounting issues and managing the financial performance by including all the
environmental sustainability aspects. Hence, it is necessary that all the stakeholders should be
identified which could help the company in increasing it financial performance and resolving all
the environment related issues (Bagnoli and Watts, 2016).

REFERENCES
Bagnoli, M. and Watts, S. (2016). Voluntary Assurance of Voluntary CSR Disclosure. Journal of
Economics & Management Strategy, 26(1), pp.205-230.
BEYER, A. and GUTTMAN, I. (2012). Voluntary Disclosure, Manipulation, and Real
Effects. Journal of Accounting Research, 50(5), pp.1141-1177.
Dávila, A., Epstein, M. and Manzoni, J. (2016). Performance measurement and management
control.
Dawkins, C. and Fraas, J. (2009). Beyond Acclamations and Excuses: Environmental
Performance, Voluntary Environmental Disclosure, and the Role of Visibility. Journal of
Business Ethics, 92(4), pp.655-655.
Dawkins, C. and Fraas, J. (2010). Erratum to: Beyond Acclamations and Excuses:
Environmental Performance, Voluntary Environmental Disclosure and the Role of
Visibility. Journal of Business Ethics, 99(3), pp.383-397.
Hassan, A. (2015). Environmental performance and voluntary disclosure on specific
environmental activities: an empirical study of carbon vs. non-carbon intensive industries.
Legitimacy proactive approach. International Journal of Sustainable Economy, 7(4), p.243.
Hummel, K. and Schlick, C. (2016). The relationship between sustainability performance and
sustainability disclosure – Reconciling voluntary disclosure theory and legitimacy
theory. Journal of Accounting and Public Policy, 35(5), pp.455-476.
Jones, S. and Ratnatunga, J. (2012). Contemporary issues in sustainability accounting, assurance
and reporting. Bingley England: Emerald Insight.
Jong-Seo Choi (2010). Content Analysis of Voluntary Environmental Disclosure Made in Stand-
alone Environmental Reports or Company Web-sites: Focusing on the Interrelations between
Disclosure Quality, Environmental Performance and Economic Performance. Journal of
Environmental Policy, 9(3), pp.69-114.

Oates, G. and Moradi-Motlagh, A. (2016). Is voluntary disclosure of environmental performance
associated with actual environmental performance? Evidence from Victorian local governments,
Australia. Australasian Journal of Environmental Management, 23(2), pp.194-205.
Sunderasan, S. (2013). Enabling Environment. India: Springer India.
Wen, X. (2012). Voluntary Disclosure and Investment*. Contemporary Accounting Research,
30(2), pp.677-696.